Breslin Incorporated made a capital contribution of investment property to its 100-percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,320,000 and a tax basis to Breslin of $2,900,000. Required: What are the tax consequences to Breslin Incorporated on the contribution of the investment property to Crisler Company? What is the tax basis of the investment property to Crisler Company after the contribution to capital? What gain or loss, if any, would Crisler recognize if it received a contribution to capital of the property from the local city government? What basis would it take in the property?
Breslin Incorporated made a capital contribution of investment property to its 100-percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,320,000 and a tax basis to Breslin of $2,900,000. Required: What are the tax consequences to Breslin Incorporated on the contribution of the investment property to Crisler Company? What is the tax basis of the investment property to Crisler Company after the contribution to capital? What gain or loss, if any, would Crisler recognize if it received a contribution to capital of the property from the local city government? What basis would it take in the property?
Chapter12: S Corporations
Section: Chapter Questions
Problem 15CE
Related questions
Question
Breslin Incorporated made a capital contribution of investment property to its 100-percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,320,000 and a tax basis to Breslin of $2,900,000. Required: What are the tax consequences to Breslin Incorporated on the contribution of the investment property to Crisler Company? What is the tax basis of the investment property to Crisler Company after the contribution to capital? What gain or loss, if any, would Crisler recognize if it received a contribution to capital of the property from the local city government? What basis would it take in the property?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT