Penny, Miesha, and Sabrina transfer property to Owl Corporation for 75% of its stock. Nancy, their attorney, receives 25% of the stock in Owl for legal services rendered in incorporating the business. What are the tax consequences of these transactions? How should this be handled?
What are the tax consequences if an individual investor incurs a loss on the following:
a. Stock that is not § 1244 stock.
b. Stock that is § 1244 stock.
c. Corporate bond.
d. An uncollectible loan made to a corporation.
Nick exchanges property (basis of $100,000; fair market value of $3,000,000), for 75% of the stock of Yellow Corporation. The other 25% of the stock is owned by Gloria who acquired it several years ago. What are the tax consequences to Nick?
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