Michael transfers a commercial building to his newly formed corporation, Build Corp., in exchange for 1,000 shares of stock worth $200,000 and a company vehicle worth $30,000. The building's adjusted basis is $150,000. What is Michael's recognized gain on the transfer?
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- Your client has a real estate asset used in his business. He exchanges it for a like-kind real estate asset owned by Ava. The basis of your client's asset is $50,000 and he gives Ava $25,000 cash plus the asset in exchange for Ava's asset, which is worth $40,000. Ava's basis in her original asset is $9,000. What is Ava's gain or loss? A. $25,000 gain recognized. $31,000 gain realized and recognized. C. $0 gain recognized. D. $0 loss recognized.Jimmy transfers a building with an adjusted basis of $50,000 and a fair-market value of $150,000 to XYZ Inc. in return for 100% of its stock. The building is subject to a $100,000 mortgage, which XYZ Inc. assumes. Please calculate the amount of any gain that Jimmy will report. Please also calculate Jimmy's basis in the stock. Show all of your work.Nicole and Alex get together to form a new corporation, TBTM Inc. (The Better Tax Museum, a competitor to The Tax Museum). Nicole contributes a building that has a tax basis of $700,000 and a fair market value of $850,000 in exchange for 75% of the stock and $100,000 in cash. Alex contributes $250,000 cash for 25% of the stock. A. How much taxable gain does Nicole have in the transaction? B. What basis does TBTM Corp take in the building? C. What basis does Nicole take in the stock received? D.
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- What is the sale?9Please explain Barbara is trading real property used solely for business purposes for new real property to be used in his business. Barbara's current property has a fair market value of $330,000, but her adjusted basis in the property is $275,000. In this exchange Barbara will receive a new property worth $290,000 and $40,000 in cash. What is Barbara's recognized gain or loss in the current year related to this exchange?
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