Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Step 1
There are tax consequences lied on the transfer of property to other person. This liability would be considered as according to the sales consideration reduced with purchase price or other expenses, capital gain would be resulted. The person who is transferring would be liable for the tax payment on the capital gain incurred due to transfer.
In the case, the conditions for section 351 has not completed properly then, also person would be liable for federal income taxes.
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