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5 1 9 1 Natorp Boulevard Mason, OH 4 5 0 4 0 March 2 9 , 2 0 2 4 Mr . Troy Kennedy
Natorp Boulevard
Mason, OH
March
Mr Troy Kennedy
Maple Street
Syracuse, NY
Dear Mr Kennedy:
This letter is in response to your question as to whether you must report gain on the transfer of property to Red Corporation. Our
conclusion is based on the facts as outlined in your March letter. Any change in facts may cause our conclusion to be
inaccurate.
The property you transferred had a tax basis of $ and a fair market value of $ for which you received stock
representing a interest in Red Corporation. The other interest is owned by Sarah Mitchell, who acquired her shares
several years ago.
Because the amount of stock you acquired represents less than the minimum requirement of
interest in Red
Corporation, you
the :
gain on the transfer.
Should you need more information or need clarification on our conclusion, do not hesitate to contact me
Sincerely,
Martha R Harris, CPA
Partner
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