How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JKCPA Your Own Question
Category: Tax
Satisfied Customers: 5884
Experience:  CPA with tax experience.
Type Your Tax Question Here...
JKCPA is online now
A new question is answered every 9 seconds

Algernon Amsley transferred the following to his controlled

Resolved Question:

Algernon Amsley transferred the following to his controlled corporation in exchange for stock:

Basis Value
Building $20,000 $50,000
Cash 10,000 10,000
Mortgage on building 40,000 40,000
IBM stock 15,000 12,000

Algernon must recognize a gain of:

a. $20,000
b. $0
c. $10,000
d. $27,000
Submitted: 6 years ago.
Category: Tax
Expert:  JKCPA replied 6 years ago.
Hi Customer,

Thanks for your question.

The answer is b. $0.
Even though the building mortgage exceeds the building’s basis, it is still short of the aggregate basis transferred including cash.

Hope this helps!
JKCPA and other Tax Specialists are ready to help you

Related Tax Questions