Please help... regarding tax problems

Nov 27, 2006 3 Replies

Let say Ralph transfers property with an adjusted basis of $65,000 and a FMV of $70,000 to lake corporation in a Sec.



351 transaction. Ralph receives the stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is what?

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Maybe Ralph should do his own homework.

$65,000, plus $10,000 (approximately) of taxable income.

Stu

Sounds like a homework problem to me. :)

Moderator: I knew the answer! Is Tax homework getting that easy?

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