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nolifecpa
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Joined: 12 Jun 2010
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Posts: 135
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| Posted: 07 Apr 2012 at 13:17 | IP Logged
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what is M and G basis in stock if
M contributes
noncash property FMV: 80,000
liab on property: 50,000
basis of property: 40,000
cash: 20,000
G contributes
noncash property FMV: 70,000
liab on property: 0
basis of property: 50,000
cash: 0
G also received 20,000 cash
__________________
REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76
FAR-67,66
AUD-54,60's,65,83*
*expired
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jakemia
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Joined: 20 Aug 2011
Location: United States
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Posts: 162
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| Posted: 07 Apr 2012 at 16:29 | IP Logged
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Formula:
Adjusted basis of property transferred
Plus: Gain recognized
Minus: Boot received (including any liabilities transferred
Minus: Adjustment for loss property (if elected)
Equals: Basis of stock received
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nolifecpa
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Posts: 135
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| Posted: 07 Apr 2012 at 17:41 | IP Logged
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So i have
40 basis
+20 cash paid
-50 liab corp assumed
+10 liab>basis
-----------
20 sh basis for m
50 basis
-20 cash rec
+20 cash rec
---------
50 sh basis for g
Agree? Disagree?
__________________
REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76
FAR-67,66
AUD-54,60's,65,83*
*expired
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musicamor04
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Joined: 05 Oct 2011
Location: United States
Online Status: Offline
Posts: 155
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| Posted: 08 Apr 2012 at 18:29 | IP Logged
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I believe M has a basis of $10k as follows:
$40,000 - adj basis of property
+$20,000 - cash contributed
-$50,000 - liability assumed by corporation
=$10,000
I don't see where there is a gain is recognized here because the cash and adj basis of the property is taken into account. The basis is not adjusted to zero (yet).
__________________
BEC - (65, 75, lost credit re-take May 30, 2012)
FAR - (42, 60, 64, 76)
AUD - (63, 87)
REG - (70, 58, 50 69, 70, 88--FINALLY!!)
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musicamor04
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Joined: 05 Oct 2011
Location: United States
Online Status: Offline
Posts: 155
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| Posted: 08 Apr 2012 at 18:31 | IP Logged
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I believe G has a basis of $30k as follows:
$50,000 - adj basis of property
-$20,000 - cash received
=$30,000
__________________
BEC - (65, 75, lost credit re-take May 30, 2012)
FAR - (42, 60, 64, 76)
AUD - (63, 87)
REG - (70, 58, 50 69, 70, 88--FINALLY!!)
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Topic: shareholder basis in stock
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