Question
Carmen transfer land and a building having a 60,000 adjusted basis and a 100,000 FMV to bass corporation in a transaction ostensibly qualifying as a
Carmen transfer land and a building having a 60,000 adjusted basis and a 100,000 FMV to bass corporation in a transaction ostensibly qualifying as a tax-free under sec 351.
Immediately before the exchange , carmen incurs a 50,000 mortgage on a property.
The mortgage is assumed by the corporation, and the mortgage proceeds are used by Carmen to remodel her personal residence.
a. What are the likely tax consequences of the assets transfer?
ANSWER
b. What are the rationale for this results?
ANSWER
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Introductory Financial Accounting For Business
Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Jennifer Edmonds, Philip Olds
2nd Edition
1260575306, 978-1260575309
