Jack transfers real estate held for more than one year with a FMV of $2,500,000 and a tax basis of $50,000 into a newly formed C corporation in exchange for all of the entity's stock. This was done on the advice of his accountant to reduce his liability associated with the land as the land is located near the Paso Robles fair grounds. This was good advice True False

Jennifer transferred land with an adjusted basis of $15,000 and a fair market value of $25,000 to  ABC Corporation in return for all of its stock. Jennifer also received a $1,000 short-term note (boot). Please calculate the following for Jennifer. You must show your all of your work.  1) Her realized gain 2) Her recognized gain 3) Her basis in the stock 4) Her basis in the note

Mr. XYZ is negotiating to buy a parcel of property for his business. The seller of the property is asking 1,700,000 for the property. The assessed value of the property for tax purposes of 1 million 1, 250,000. The property is presently insured by the owner for 1,350,000. Mr, XYZ, originally offered the seller 1,300,000 for the property. Mr. XYZ and the seller have agreed on a purchase price of 1,500,000. Shortly after the purchase is made by Mr. XYZ, he offered 1,750,000 for the same property. At what price would Mr. XYZ record the property on the books of his business?

Bobert transfers a rental office building (current fair market value of $45,000) that he purchased 20 years ago for $60,000. Its current basis is $15,000 after recognition of $45,000 in depreciation expense.The corporation assumes the $20,000 balance on the original mortgage and Bobert receives 25 shares of stock from the corporation in the exchange. How much gain does Bobert recognize? Show work

Mr. XYZ, is negotiating to buy a parcel of property for his business. The seller of the property is asking P 1,700,000 for the property. The assessed value of the property for tax purposes of P 1,250,000. The property is presently insured by the owner for P 1,350,000. Mr. XYZ, originally offered the seller P 1,300,000 for the property. Mr. XYZ and the seller have agreed on a purchase price of P 1,500,000. Shortly after the purchase is made by Mr. XYZ, he is offered P 1,750,000 for the same property. At what price would Mr. XYZ record the property on the books of his business?

[The following information applies to the questions displayed below.] Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $205,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Building Land Total FMV $ 76,875 179,375 $ 256,250 To equalize the exchange, Wizard Corporation paid Hermione $51,250 in addition to her stock. Gain or loss realized Adjusted Tax Basis $ 20,500 82,000 $ 102,500 :. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? $

Prepare your answers using excel or clearly written computations. Show your work for maximum points.  3. Diego transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Diego’s recognized gain on the transfer and the basis for his stock.

Donald and Melania agree to go into business together. Donald will contribute a building with a FMV of $600,000 and a tax basis of $200,000 in return for 50 percent of the stock in the corporation. The corporation will assume a $300,000 mortgage on the building. Melania will contribute $300,000 cash in return for 50% of the stock of the corporation. How much gain, if any, does Donald recognize on the transfer of his building assuming the transaction qualifies under IRC Section 351?

Pat Middleton owns a non-depreciable capital asset that originally cost $20,000 and is now worth $80,000. Pat transfers the asset to a corporation, receiving as payment debt of $60,000 and preferred shares with a value of $20,000. Pat and the corporation will elect under Section 85 to avoid paying tax on the transfer.   Determine the appropriate transfer price under Section 85. Determine the cost of the asset for the corporation, and the ACB and PUC for the preferred shares received as consideration.

Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements. Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? on the transfer of land to Development Corporation. Donna recognizes no gain or loss Development's basis in the land will be $ 150,000. All gain on the subsequent sales will be to Development. This alternative results in the pre-contribution gain post-contribution profit earned from subdividing the land ordinary income that accrued prior to Donna's transfer and the being taxed at a 21% tax rate. Requirement b. In what alternative ways can the transaction be structured to achieve more favorable tax results? Assume Donna's…