Tim, a cash basis taxpayer, incorporates his sole proprietor…
Tim, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the following items to newly created Wren Corporation. Adjusted Fair Market Basis Value Cash $ 20,000 $ 20,000 Building 110,000 160,000 Mortgage payable (secured by the building and held for 15 years) 135,000 135,000 With respect to this transaction:
Read DetailsKirby and Helen form Red Corporation. Kirby transfers proper…
Kirby and Helen form Red Corporation. Kirby transfers property, basis of $20,000 and value of $300,000, for 100 shares in Red Corporation. Helen transfers property, basis of $40,000 and value of $280,000, and provides legal services in organizing the corporation. The value of her services is $20,000. In return Helen receives 100 shares in Red Corporation. Regarding these transfers:
Read DetailsJane transfers property (basis of $180,000 and fair market v…
Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for 80% of itsstock (worth $425,000) and a long-term note (worth $75,000) executed by Green Corporation and made payable toJane. As a result of the transfer:
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