Dan and Murphy contributed property to a corporation in exch…
Dan and Murphy contributed property to a corporation in exchange for stock during the current tax year. Dan contributed $50,000 cash for 50% of the stock and Murphy contributed land held as investment property with an adjusted basis of $36,000 and fair market value of $50,000 for 50% of the stock. Murphy had owned the property for 3 years. What is Murphy’s holding period in his stock after this transaction and what is the corporation’s holding period in the land?
Read DetailsLeah transfers equipment (basis of $400,000 and fair market…
Leah transfers equipment (basis of $400,000 and fair market value of $500,000) for additional stock in Crow Corporation. After the transfer, Leah owns 80% of Crow’s stock. Associated with the equipment is § 1245 depreciation recapture potential of $70,000. As a result of the transfer:
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