Marsha transfers her personal use automobile to her business (a sole proprietorship). The car’s adjusted basis is $30,000 and the fair market value is $16,000. No cost recovery had been deducted by Marsha, since she held the car for personal use. Determine the adjusted basis of the car to Marsha’s sole proprietorship including the basis for cost.
Marsha transfers her personal use automobile to her business (a sole proprietorship). The car’s adjusted basis is $30,000 and the fair market value is $16,000. No cost recovery had been deducted by Marsha, since she held the car for personal use. Determine the adjusted basis of the car to Marsha’s sole proprietorship including the basis for cost.
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 43P: Nicky receives a car from Sam as a gift. Sam paid 48,000 for the car. He had used it for business...
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Marsha transfers her personal use automobile to her business (a sole proprietorship). The car’s adjusted basis is $30,000 and the fair market value is $16,000. No cost recovery had been deducted by Marsha, since she held the car for personal use. Determine the adjusted basis of the car to Marsha’s sole proprietorship including the basis for cost.
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