During the current year, Troy sells land to Berry Corporation for $165,000 Troy purchased the land for investment in 2000 for $170,000 Berry Corporation is owned as follows Owner Percentage Ownership Tom (Troys son) 20 Jimmy (Troys cousin) 15 Jimmys father (Troys uncle) 30 Angie (Troys wife) 10 Nic...

a Troy is deemed to own 30 in Berry Corporation see diagram because he is treated as owning the stock owned by his family which under Sec 267 includes ...

During the current year, Troy sells land to Berry Corporation for $165,000. Troy purchased the land for

Question:

During the current year, Troy sells land to Berry for $165,000. Troy purchased the land for investment in 2000 for $170,000. Berry is owned as follows:
Owner Percentage Ownership
Tom (Troy’s son) ……………………………...20%
Jimmy (Troy’s cousin) ………………………...15%
Jimmy’s father (Troy’s uncle) …………….......30%
Angie (Troy’s wife) ……………......................10%
Nicole (Angie’s Sister) ……….........................25%
Troy and Jimmy are equal partners in a separate entity, TJ What is Troy’s constructive ownership in Berry What is the amount of loss Troy may recognize?
c. How would your answers to Parts a and b change if TJ owned 25%, instead of Nicole? Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...