Q9 - Joe exchanges his rental beach property that he paid $300,000 for, and that is now worth $400,000, for 50% of the stock of Bethany Co Inc. At the same time Mary agrees to provide legal services to set up the corporation and to also serve as property manager for the first year. In addition, she has a small rental storage unit in Odessa that is worth $100,000 (she paid $80,000 for this) that she will also toss in. For this she will receive 50% of the stock. The stock is worth $800,000, so Joe gets $400,000 and Mary the same. Do Joe or Mary have any gain or loss to report as taxable? Joe - Amount realized? Basis in property transferred by Joe? Gain (loss) realized? Gain recognized? Basis in what was received by Joe? Mary - Amount realized? Basis in property transferred by Mary? Gain (loss) or "income" realized? Gain recognized (split out by "category") Basis in what was received by Mary? Q9 - Joe exchanges his rental beach property that he paid $300,000 for, and that is now worth $400,000, for 50% of the stock of Bethany Co Inc. At the same time Mary agrees to provide legal services to set up the corporation and to also serve as property manager for the first year. In addition, she has a small rental storage unit in Odessa that is worth $100,000 (she paid $80,000 for this) that she will also toss in. For this she will receive 50% of the stock. The stock is worth $800,000, so Joe gets $400,000 and Mary the same. Do Joe or Mary have any gain or loss to report as taxable? Joe - Amount realized? Basis in property transferred by Joe? Gain (loss) realized? Gain recognized? Basis in what was received by Joe? Mary - Amount realized? Basis in property transferred by Mary? Gain (loss) or "income" realized? Gain recognized (split out by "category") Basis in what was received by Mary