Issues: What are the tax implications of receiving stocks in exchange for services? How is the income recognized? What is the holding period of the properties being transferred Are there any tax implications of contributing a depreciated property previously used in a business to another Corporation? Consider depreciation recapture issues Will contributing depreciated property trigger immediate gain recognition under IRC 351? How will this affect future depreciation deductions for the Corporation? What effects does the transfer of a mortgaged land (encumbered) have on the shareholders and the corporation?

Issues: What are the tax implications of receiving stocks in exchange for services? How is the income recognized? What is the holding period of the properties being transferred Are there any tax implications of contributing a depreciated property previously used in a business to another Corporation? Consider depreciation recapture issues Will contributing depreciated property trigger immediate gain recognition under IRC 351? How will this affect future depreciation deductions for the Corporation? What effects does the transfer of a mortgaged land (encumbered) have on the shareholders and the corporation?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 9DQ

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