1 . The definition of real estate as it pertains to a section 351 transaction involves money. (TRUE) 2 . A taxpayer always will have a tax basis in boot received within a section 351 transaction comparable to its fair market value. (TRUE) 3. Mandel transferred home to his new company in a section 351 purchase. One of the properties transferred was land using a fair market value of two-hundred dollar, 000 and a taxes basis of $250, 000. The corporation will always require a tax basis in the property of one hundred dollar, 000 to stop the “built-in loss coming from being transmitted from Mandel to the organization.
(FALSE) 5. Han transported land to his company in a section 351 transaction. Han got held the land for two years before the transfer. The organization will add Han’s holding period for the property. (TRUE) five. Roberta exchanges property using a tax foundation $400 and a fair market value of $250 to a firm in exchange to get stock using a fair their market value of $350 in a purchase that meets your criteria for deferment under section 351.
The corporation assumed a liability of $150 on the property transmitted. What is the quantity realized by Roberta inside the exchange? ($500) 6. Antoine transfers property with a taxes basis of $500 and a good market value of $600 into a corporation as a swap for inventory with a reasonable market value of $550 within a transaction that qualifies intended for deferral under section 351. The corporation presumed a the liability of $50 on the property transferred. Precisely what is Antoine’s duty basis inside the stock received in the exchange? ($450) six. Carlos transfers property which has a tax basis of $500 and a fair their market value of $800 to a organization in exchange intended for stock which has a fair the true market value of $650 and 50 dollars in a transaction that meets your criteria for deferment under section 351. The corporation assumed a liability of $100 for the property moved.
What is the corporation’s tax basis in the property received in the exchange? ($550) eight. Tristan exchanges property which has a tax foundation $900 and a fair market value of $1, 200 to a corporation as a swap for share with a good market value of $900 and $200 within a transaction that qualifies to get deferral below section 351. The corporation thought a the liability of $22.99 of the house transferred. Precisely what is the businesses tax basis in the property received in the exchange? ($1, 100)
9. Ashley transactions property having a tax basis of $5, 1000 and a fair market value $3, 000 to a corporation in return for share with a reasonable market value of $2, 500 and $500 in a deal that authorize for deferment under section 351. The corporation assumed a liability of $500 around the property moved. What is Ashley’s tax basis in the stock received in the exchange? ($4, 000) 10. Which with the following assertions best describes the concept of control as it applies to a section 351 transaction? Control is defined as the ownership of 80 percent of more of a companies voting inventory and 80 percent or more of the total number of shares of every class of non-voting share.
one particular
