Q: What does “property” include for purposes of § 351?
What does “property” include for purposes of § 351?
See AnswerQ: Cynthia, a sole proprietor, was engaged in a service business
Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. In February of the current year, she incorporates her business as Dove Corporation and transfer...
See AnswerQ: Allie forms Broadbill Corporation by transferring land (basis of $125
Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporating Broadbill, Allie...
See AnswerQ: On September 18, 2017, Gerald received land and a building
On September 18, 2017, Gerald received land and a building from Frank as a gift. Frank’s adjusted basis and the fair market value at the date of the gift are as follows: No gift ta...
See AnswerQ: Rafael transfers the following assets to Crane Corporation in exchange for all
Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. (Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation....
See AnswerQ: Rose dies with passive activity property having an adjusted basis of $
Rose dies with passive activity property having an adjusted basis of $65,000, suspended losses of $13,000, and a fair market value at the date of her death of $90,000. Of the $13,000 suspended loss ex...
See AnswerQ: Green Corporation hires six individuals on January 4, 2017, all
Green Corporation hires six individuals on January 4, 2017, all of whom qualify for the work opportunity credit. Three of these individuals receive wages of $8,500 during 2017, and each individual wor...
See AnswerQ: On December 1, 2015, Lavender Manufacturing Company (a corporation
On December 1, 2015, Lavender Manufacturing Company (a corporation) purchased another company’s assets, including a patent. The patent was used in Lavender’s manufacturing operations; $49,500 was allo...
See AnswerQ: Alice and Jane form Osprey Corporation. Alice transfers property, basis
Alice and Jane form Osprey Corporation. Alice transfers property, basis of $25,000 and value of $200,000, for 50 shares in Osprey Corporation. Jane transfers property, basis of $50,000 and value of $1...
See AnswerQ: Red Corporation wants to set up a manufacturing facility in a midwestern
Red Corporation wants to set up a manufacturing facility in a midwestern state. After considerable negotiations with a small town in Ohio, Red accepts the following offer: land (fair market value of $...
See Answer
