Professional Documents
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Example (Loss)
Bill transfers property with a tax basis of $600 and
a fair market value of $400 to a corporation in
exchange for stock with a fair market value of $400
and $50 cash in a transaction that qualifies for
deferral under section 351. The corporation
assumed a liability of $50 on the property
transferred. What is Bill's tax basis in the stock
received in the exchange?
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Example (Loss)
Bill transfers property with a tax basis of $600 and
a fair market value of $400 to a corporation in
exchange for stock with a fair market value of $400
and $50 cash in a transaction that qualifies for
deferral under section 351. The corporation
assumed a liability of $50 on the property
transferred. What is the corporations tax basis in
the property?
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