Breslin Incorporated made a capital contribution of investment property to its 100-percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,000,000 and a tax basis to Breslin of $2,225,000. b. What is the tax basis of the investment property to Crisler Company after the contribution to capital?

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
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Chapter17: Property Transactions: § 1231 And Recapture Provisions
Section: Chapter Questions
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Breslin Incorporated made a capital contribution of investment property to its 100-percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,000,000 and a tax basis to Breslin of $2,225,000.

b. What is the tax basis of the investment property to Crisler Company after the contribution to capital?

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