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Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in
Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases.
- Contribution of property with a basis of $1,300 and an FMV of $1,700.
- Contribution of property with a basis of $3,600 and an FMV of $4,760. The stockholder also received $800 cash from the corporation as part of the stock transaction.
- Contribution of property with a basis of $8,500 and an FMV of $13,100. The stockholder also received property with an FMV of $2,000 from the corporation as part of the stock transaction.
- Contribution of a building with an FMV of $215,000, a mortgage (assumed by the corporation) of $115,000, and a basis of $155,000.
- Contribution of a building with an FMV of $1,730,000, a mortgage (assumed by the corporation) of $1,030,000, and a basis of $650,000.
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