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Dan, a lawyer, owns real estate with a basis of $1...

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Dan, a lawyer, owns real estate with a basis of $10,000 and a fair market value of $18,000. Elite has outstanding 100 shares, all held by Mr.Able. Alite issues 400 additional shared of its common stock (having a fair market value of $18,000) to Dan in exchange for his property worth $18,000 a. Dan does not qualify for IRC section 351 treatment because he has transferred his property to Elite in a seperate and distinct transaction from MR. Able b. Dan qualifies for Section 351 treatment because the acquired "control" of Elite and Mr. Able must file amendment returns covering his previous transfers to Elit due to his loss of control c. The gain realized on the transfer is recognized in full by Dan because he occasionally renders legal services to Elite d. The transfer is not taxable to Dan or Elit due to the application of Section 351 and 1032,Dan, a lawyer, owns real estate with a basis of $10,000 and a fair market value of $18,000. Elite has outstanding 100 shares, all held by Mr.Able. Alite issues 400 additional shared of its common stock (having a fair market value of $18,000) to Dan in exchange for his property worth $18,000 what is Dan's adjusted basis in his Elit shares and what is Elite's adjusted basis in the real estate acqurired from Dan?,Dan, a lawyer, owns real estate with a basis of $10,000 and a fair market value of $18,000. Elite has outstanding 100 shares, all held by Mr.Able. Alite issues 400 additional shared of its common stock (having a fair market value of $18,000) to Dan in exchange for his property worth $18,000 How much gain, if any, would Dan have recognized if he transferred the real estate to Elit subject to an exisitng indebtedness of $14,000 and what is adjusted basis of Dan and Elite?

 

Paper#9493 | Written in 18-Jul-2015

Price : $25
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