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Unformatted text preview: to recognize a gain of $2,000. Thus his basis on his 100 shares is $3,000. c) Since there was no gain recognized for the transfer by Sam, the corporation Thus the corporation does not recognize any gain or loss until such time that t corporation's basis is also $15,000. d) Section 1032 of the Code states that a corporation does not recognize gain or other property in exchange for the corporation's stock . Thus, the basis to t it received from Bill is $3,000. me money being taxed repeatedly. a company's profits are taxed and 's post-tax profits. Without the would be taken from a rship stake in the first corporation, te book-tax differences are due to effects of permanent and ce permanent differences. ed control of the corporation. 00 shares is equal to the basis of , the exchange is taxable. Bill has n retains Sam's original basis. the property is disposed of. The or loss on the receipt of money the corporation for the property...
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- Spring '11