Ms. Brittany Callihan 32 Country Lane Lawrence, KS 66045 Dear Ms. Callihan: As you requested in...
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Ms. Brittany Callihan 32 Country Lane Lawrence, KS 66045 Dear Ms. Callihan: As you requested in your note, I am providing you with the tax consequences of the proposed sale of stock to your son Ridge. Although you would have a potential of $ you be able to recognize between certain this related parties. on your tax return. The tax law disallows the recognition of If you do sell the stock to Ridge, his tax basis for calculating gain or loss on a subsequent sale by him would be $ However, if he should sell it at a gain, he could use your to gain. Therefore, from a planning perspective, you should sell the stock to If you would like to discuss this further, please let me know. Sincerely, Ellen Allen, CPA Tax Partner his Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. What are the tax consequences to Brittany? Brittany will have a $ that is b. What are the tax consequences to Ridge if he later sells the stock for $190,000? What are the tax consequences to Ridge if he later sells the stock for $152,000? What are the tax consequences to Ridge if he later sells the stock for $174,000? c. Complete the letter to Brittany in which you inform her of the tax consequences if she sells the stock to Ridge for $160,000. Explain how a sales transaction could be structured that would produce better tax consequences for her. June 21, 2021 SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 Ms. Brittany Callihan 32 Country Lane Lawrence, KS 66045 Dear Ms. Callihan: As you requested in your note, I am providing you with the tax consequences of the proposed sale of stock to your son Ridge. Although you would have a potential of $ you be able to recognize between certain this related parties. on your tax return. The tax law disallows the recognition of If you do sell the stock to Ridge, his tax basis for calculating gain or loss on a subsequent sale by him would be $ However, if he should sell it at a gain, he could use your to gain. Therefore, from a planning perspective, you should sell the stock to If you would like to discuss this further, please let me know. Sincerely, Ellen Allen, CPA Tax Partner his Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. What are the tax consequences to Brittany? Brittany will have a $ that is b. What are the tax consequences to Ridge if he later sells the stock for $190,000? What are the tax consequences to Ridge if he later sells the stock for $152,000? What are the tax consequences to Ridge if he later sells the stock for $174,000? c. Complete the letter to Brittany in which you inform her of the tax consequences if she sells the stock to Ridge for $160,000. Explain how a sales transaction could be structured that would produce better tax consequences for her. June 21, 2021 SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040
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Dear Ms Callihan Thank you for reaching out regarding the potential sale of stock to your son Ridge ... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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