oe and Sunny intend to enter into a business venture together and decided that an S corporation would be a desirable entity choice for federal income tax purposes. The corporation is named JS Inc. (“JS”). For newly established JS, Joe intends to contribute Property A with a fair market value (“FMV”) of $800 and basis of $300. Sunny intends to contribute cash of $800. Now assume the fact that Joe contributes Property with a FMV of $800 and basis of $300, but subject to debt of $500. 54. Provide Joe’s basis in JS upon contribution. 55. Provide JS’s basis in Property A immediately after the contribution. Now assume that Joe receives cash of $300 and stock for his contribution of Property A with a FMV of $800 and basis of $300, subject to no debt. 56. Provide Joe’s basis in JS upon contribution. 57. Provide JS’s basis in Property A immediately after the contribution.
oe and Sunny intend to enter into a business venture together and decided that an S corporation would be a desirable entity choice for federal income tax purposes. The corporation is named JS Inc. (“JS”). For newly established JS, Joe intends to contribute Property A with a fair market value (“FMV”) of $800 and basis of $300. Sunny intends to contribute cash of $800.
Now assume the fact that Joe contributes Property with a FMV of $800 and basis of $300, but subject to debt of $500.
54. Provide Joe’s basis in JS upon contribution.
55. Provide JS’s basis in Property A immediately after the contribution.
Now assume that Joe receives cash of $300 and stock for his contribution of Property A with a FMV of $800 and basis of $300, subject to no debt.
56. Provide Joe’s basis in JS upon contribution.
57. Provide JS’s basis in Property A immediately after the contribution.
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