As of the beginning of the 2020, David owns stock in UNF Corporation and his tax basis = $200,000 . UNF distributes property to him which has a FMV = $900,000 and tax basis = $600,000 on 12/31/20. UNF has accumulated E&P of $200,000 and negative current E&P for 2020 of ($100,000) immediately before the distribution. How much capital gain does David recognize on the distribution?
As of the beginning of the 2020, David owns stock in UNF Corporation and his tax basis = $200,000 . UNF distributes property to him which has a FMV = $900,000 and tax basis = $600,000 on 12/31/20. UNF has accumulated E&P of $200,000 and negative current E&P for 2020 of ($100,000) immediately before the distribution. How much capital gain does David recognize on the distribution?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 48P
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As of the beginning of the 2020, David owns stock in UNF Corporation and his tax basis = $200,000 . UNF distributes property to him which has a FMV = $900,000 and tax basis = $600,000 on 12/31/20. UNF has accumulated E&P of $200,000 and negative current E&P for 2020 of ($100,000) immediately before the distribution. How much capital gain does David recognize on the distribution?
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