depreciation_contributed_property

depreciation_contributed_property - for a 50% interest in...

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Topic: Depreciation of contributed property Denny was a sole proprietor on May 12, 2008, when he bought used equipment (7-year property) for $1,000 to use in his business. In 2008 and 2009, he used MACRS to depreciate the equipment. Tax year Cost MACRS % Cost recovery 2008 1,000 14.29% 143 2009 1,000 24.49% 245 388 On December 31, 2009, the asset had an adjusted basis of $612 and a fair value of $800. Required : Compute 2010 cost recovery in each of the independent cases. 1. On January 1, 2010, he transferred the equipment to the ABC partnership in exchange for a 50% interest in the partnership. 2. On Mach 1, 2010, he transferred the equipment to the ABC partnership in exchange
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Unformatted text preview: for a 50% interest in the partnership. 3. On January 1, 2010, he transferred the equipment to the ABC corporation in exchange for a 50% ownership interest in a Sec. 351 tax-free exchange. 4. On January 1, 2010, he transferred the equipment to the ABC corporation in exchange for a 50% ownership interest in an exchange that did not qualify for Sec. 351 treatment. 5. On January 1, 2010, he transferred the equipment to the ABC corporation in exchange for a 50% ownership interest in a Sec. 351 tax-free exchange. Assume the fair value of the asset was $900 and Denny received $100 cash in addition to the stock from the corporation....
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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