An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its sole shareholder. The tax results of the distribution will be Group of answer choices no gain recognized by the corp

An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its sole shareholder. The tax results of the distribution will be Group of answer choices no gain recognized by the corp

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 23DQ

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An S corporation is generally restricted to the calendar year end to mitigate tax deferral. True or False Juke, an S Corporation, distributes a parcel of land to Shannon, one of its shareholders. The land has a basis of $10,000 and a fair market value of $20,000. This distribution will cause Shannon to recognize a share of the deemed gain. True or False
2. Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: FMV Adjusted Tax Basis Inventory $ 10,000 $ 4,000 Building 50,000 30,000 Land 100,000 50,000 Total $ 160,000 $ 84,000 The fair market value of the corporation’s stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) What amount of gain or loss does Ramon recognizeon the transfer of the property to his corporation?
3. Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: FMV Adjusted Tax Basis Inventory $ 10,000 $ 4,000 Building 50,000 30,000 Land 100,000 50,000 Total $ 160,000 $ 84,000 The fair market value of the corporation’s stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) What is Ramon’s basis in the stock he receives in his corporation?
Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: Inventory Building Land Total The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ramon. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. Required: a. What amount of gain or loss does Ramon realize on the transfer of the property to his corporation? b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation? c. What is Ramon's basis in the stock received in the new corporation? Required A FMV $24,000 54, 250 181, 000 $ 259, 250 Complete this question by entering your answers in the tabs below. Required B Adjusted Tax Basis…
Gamma Corporation distributes land to its sole shareholder, Lisa. The land has a basis to the corporation of $20,000 and a fair market value of $50,000. There is a $35,000 mortgage on the land which the shareholder agrees to assume. Before this distribution, Gamma has current E&P of $5,000 and accumulated E&P of $4,000. How much gain does Gamma Corporation recognize as a result of this distribution? How much dividend income does Lisa recognize as a result of this distribution? What is Lisa’s basis for the land? What is Gamma Corporation’s E&P after the distribution?
13. TP received a proportionate non liquidating distribution from an LLC in which he is a 10% member. His outside basis is $50,000. The distribution consisted of $58,000 in cash and non inventory assets with a basis of $10,000 and a FMV of $12,000. The LLC has no hot assets. I The tax consequences of this distribution are: a. 0 gain or loss and 0 basis in the property. b. 0 gain or loss and $50,000 basis in the property c. $8,000 ordinary income and 0 basis in the property d. $8,000 capital gain and $10,000 basis in the property e. $8,000 capital gain and 0 basis in the property.
Subject: acounting
Hans
Tax Consequences to Shareholders. R Corporation, which has substantial E&P, redeems 50 of T's 70 shares (basis of $100 per share) for $60,000. a. What effect does the redemption have on T's taxable income and the basis for his stock, assuming the transaction qualifies as a sale? b. What effect does the redemption have on T's taxable income and the basis for his stock, assuming the distribution does not qualify for sale treatment
1. Jay transfers land worth $10,000 to a corporation for all the shares. Jay's adjusted basis in the land was $3,000. Jay's gain realized is and Jay's gain recognized is . 2. What are the requirements for a taxpayer to be able to defer gain on the transfer of assets to a corporation in exchange for stock? (Give all 5 requirements) 3. What or who is treated as a person for tax purposes? Answer in alphabetical order: 4. Sara performs services for a corporation and receives stock worth $20,000 which represents 20% of the stock. Henry transfers land worth $80,000 with a basis of $15,000 for 80% of the stock. Did Sara transfer property to the corporation? a. What is Sara's basis in the land? b What is Sara's holding period in the stock? 5. H transfers land to a corporation Z in exchange for stock. With respect to the stock: a) Who is the transferor b) Who is the transferee
Denger
An S-Corporation has ownership of a piece of land with an adjusted basis of $10,000 and a FMV of $100,000. It distributes this land to a shareholder, what basis would the shareholder have in this land? a. $0 b. It would depend on the shareholder's inside basis c. $90,000 d. $100,000 e. $10,000