Depreciator us a shareholder of Redepreciation Corporation and owns 20% of its stock. Depreciators Spouse owns 10% of the stock and their adult. Son owns 10% The remaining stock is owned by unrelated persons. In the current year Depredator sells to Redepreciation for $110,000 a building used in Depredator's business and depreciated on the straight line method with a $40,000 adjusted basis and an $80,000 value and the land underlying it with a $10,000 adjusted basis and $30,000 value. The building will be used in the business of Redepreciation. What is the amount and character of the gain on the sale? What result if Spouse owns 20% of the stock, Son owns 20%, and the remaining stock is owned by unrelated persons? What result if Spouse owns 10% of the stock, Spouse's brother owns 10 d Son owns 20% and the remaining stock is owned by unrelated persons? What result in (b), above, if the sale is made by Other Corporation (in which Depreciator owns 100% of the stock) to Redepreciation Corporation? What result if the sale is between Depreciator and a trust in which Depreciator y Spouse is the income beneficiary? The trust will rent the property to a third party. What result in (e), above, if the property was a vacation resident of Depreciator and spouse and they live in a rental apartment after the sale? Do your answers suggest the purpose and scope of 1239? Depreciator us a shareholder of Redepreciation Corporation and owns 20% of its stock. Depreciators Spouse owns 10% of the stock and their adult. Son owns 10% The remaining stock is owned by unrelated persons. In the current year Depredator sells to Redepreciation for $110,000 a building used in Depredator's business and depreciated on the straight line method with a $40,000 adjusted basis and an $80,000 value and the land underlying it with a $10,000 adjusted basis and $30,000 value. The building will be used in the business of Redepreciation. What is the amount and character of the gain on the sale? What result if Spouse owns 20% of the stock, Son owns 20%, and the remaining stock is owned by unrelated persons? What result if Spouse owns 10% of the stock, Spouse's brother owns 10 d Son owns 20% and the remaining stock is owned by unrelated persons? What result in (b), above, if the sale is made by Other Corporation (in which Depreciator owns 100% of the stock) to Redepreciation Corporation? What result if the sale is between Depreciator and a trust in which Depreciator y Spouse is the income beneficiary? The trust will rent the property to a third party. What result in (e), above, if the property was a vacation resident of Depreciator and spouse and they live in a rental apartment after the sale? Do your answers suggest the purpose and scope of 1239
