CPAnet Forum: Shareholder contributing property

Active Topics

Memberlist

Help

REG STUDY GROUP
CPAnet Forum : REG STUDY GROUP

Topic: Shareholder contributing property (

Topic Closed)

Author

Message

<< Prev Topic | Next Topic >>

JLcpa
Regular
Regular

Joined: 22 Sep 2009
Online Status: Offline
Posts: 202

Posted: 27 May 2011 at 19:50 \| IP Logged

The shareholder contributing property (not services) in exchange for corporation common stock has no gain or loss if the following two conditions have been met:
a. 80% Control
b. Boot Not Involved (Received)

Does this mean that if either of the conditions are satisfied, the shareholder will recognize gain or loss?
Say, there is no boot, but after contributing property, the shareholder has less than 80%. In that case, will the shareholder recognize gain?

__________________
Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
FAR- 28 Jan 2010- 91
BEC- 26 Feb 2010- 87
REG- May 2011- 78

1tryCPA
Major Contributor

Joined: 27 Jun 2010
Online Status: Offline
Posts: 337

Posted: 27 May 2011 at 21:54 \| IP Logged

Yes, if after contribution of property all SH contributed at the same time get less than 80%, they all would recognize G.

__________________
FAR - 07/09/10 - {95}
AUD - 10/02/10 - {96}
BEC - 11/29/10 - {92}
REG - 05/23/11 - {75 would be enough}90 unbelievable, and I AM DONE!!!
______________
Wiley book/Gleim CD/Gleim simulations

JLcpa
Regular
Regular

Joined: 22 Sep 2009
Online Status: Offline
Posts: 202

Posted: 27 May 2011 at 22:19 \| IP Logged

Thanks!

__________________
Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
FAR- 28 Jan 2010- 91
BEC- 26 Feb 2010- 87
REG- May 2011- 78

Sorry, you can NOT post a reply.
This topic is closed.

Printable version

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum