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Alexandra [31]
3 years ago
15

Carlos transfers property with a tax basis of $820 and a fair market value of $1,145 to a corporation in exchange for stock with

a fair market value of $995 and $69 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $81 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Business
1 answer:
Klio2033 [76]3 years ago
6 0

Answer:

The corporation's tax basis in the property received in the exchange is $889

Explanation:

Property was transferred by Carlos, and at the time of Transfer Carlos basis on the Property is $820.

From "Carryover basis" rule,

Corporation Tax basis on Property = (Basis of Carlos) + (Gain recognized)

So, Corporation's tax basis in the Property

= $820 + $69

= $889

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$57.69 per share

Explanation:

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3 years ago
In tax year 2020, a married taxpayer with AGI of $300,000 had gross investment income of $6,150 (which included a long-term capi
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