T11F-Chp-13-03-Class Handout

T11F-Chp-13-03-Class Handout - Compute Gain on Investment...

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Tab: Cont to Corp or Ptshp File: 702f8dbf77cb8a625dfc30090ce747e56bb88b36.xls Page 1 of 1 Tax-free Transfer of Assets to Controlled Corporation 1. Compute Stockholder's Gain or Loss 1 Value of all consideration received by stockholder: 2 Value of Stock received by stockholder 3 Value of other assets received by stockholder 4 Liabilities of stockholder assumed by the corporation 5 Subtotal 6 Minus: Basis of all property transferred to corporation 7 Equals Gain Realized by shareholder Recognized Gain: Lesser of gain realized 8 or boot (include excess debt) received 2. Compute Stockholder's Basis in Stock 9 Basis of all property transferred to corporation 10 Plus gain recognized by shareholder 11 Minus boot received (include all debt transferred) 12 Equals basis of stock received 13 3. Compute Corporation's Gain 4. Compute Corporation's Basis in Property 14 Basis of property transferred by stockholder (That is: Property other than cash) 15 Add: Gain recognized by stockholder Equals: basis of property to corporation
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Unformatted text preview: Compute Gain on Investment in Partnership Note: "PARTNER-1" is the one investing in the Partnership. 1 PARTNER-1's asset had a value of 2 PARTNER-1's asset had a BASIS of 3 Partnership capital % received by PARTNER-1 4 Partnership capital % of other partners 5 Partnership debt before investment 6 Partnership debt assumed by PARTNER-1 7 PARTNER-1's debt assumed by PARTNERSHIP 8 PARTNER-1's debt assumed by other PARTNERS 9 Excess of line 8 over lines 2 + 6 10 PARTNER-1's Gain-Positive Amt. on Line 9 PARTNER-1's Basis in partnership Interest 11 Asset basis to PARTNER-1 before contribution 12 Add: Partnership debt assumed by PARTNER-1 13 Less: PARTNER-1's Debt assumed by other partners 14 Partner-1's Basis - Cannot be negative Partnership basis in asset received. 15 PARTNER-1's asset basis (before contribution) 16 Add: Gain for invest co.(rare). No gain for excess debt 17 Partnership basis in asset invested...
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This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

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