Class 6e Corp basis

Class 6e Corp basis - Taxation of the Business Entity...

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Unformatted text preview: Taxation of the Business Entity Online Lecture Series Presented by Akore Berliner, CPA Corporate Basis Issues Basis Computation for 351 Exchange Shareholders basis in stock received = Adjusted basis of transferred assets + Gain recognized on exchange- Boot received- Liabilities transferred to corporation- Minus: Adjustment for loss property (if elected) = Basis of stock received by shareholder Basis Computation for 351 Exchange Corporations basis in assets received = Adjusted basis of transferred assets + Gain recognized by transferor shareholder- Adjustment for loss property (if required) = Basis of assets to corporation Basis in Stock in Example Adjusted Basis of transferred assets: $100,000 Liabilities assumed by corp. (independent facts): Business Business No Business Purpose Purpose Purpose . Liability: $ 80,000 $120,000 $120,000 Basis in assets Transferred $100,000 $ 100,000 $100,000 + Gain recognized None 20,000 50,000- Liab. Transferred (80,000) (120,000) (120,000) Basis in stock $ 20,000 -0- $ 30,000 Corporations Basis in Assets Received Example Liabilities assumed by corp. (independent facts):Liabilities assumed by corp....
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Class 6e Corp basis - Taxation of the Business Entity...

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