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lesantik [10]
3 years ago
5

Inez transfers property with a tax basis of $200 and a fair market value of $300 to a corporation in exchange for stock with a f

air market value of $250 in a transaction that qualifies for deferral under §351. The corporation assumed a liability of $50 on the property transferred. What is the corporation's tax basis in the property received in the exchange?
Business
1 answer:
Mila [183]3 years ago
5 0

Answer:

$200

Explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

§351 allows corporations to defer taxes from capital gains (or losses) resulting from the transfer of property in exchange for stocks.

Corporation's tax basis = $200

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