John Travis owns a depreciable property with a FMV of $295,000. Its capital cost is $350,000 , the UCC $245,000 and it is the only property in the CCA class. John sells the property to his brother for $295,000. Later in the same year his brother sells the property for $315,000. Determine the income tax consequences for Mr. Travis and his brother as a result of these transactions.
John Travis owns a depreciable property with a FMV of $295,000. Its capital cost is $350,000 , the UCC $245,000 and it is the only property in the CCA class. John sells the property to his brother for $295,000. Later in the same year his brother sells the property for $315,000. Determine the income tax consequences for Mr. Travis and his brother as a result of these transactions.
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 54P
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT