Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

In 2009, pursuant to a plan of complete liquidation, Woods

Customer Question
Corp. distributed all of its...
In 2009, pursuant to a plan of complete liquidation, Woods Corp. distributed all of its property to its shareholders. Among the property distributed was cash of $200,000, and land that had been held as an investment that had a basis of $100,000, and a fair market value of $160,000. The land was subject to a mortgage of $170,000 which the shareholders assumed. What amount of gain must Woods Corp. recognize as a result of its liquidating distributions?

a. $0
b. $10,000
c. $60,000
d. $70,000
Submitted: 7 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 32 minutes by:
11/1/2010
Tax Professional: JKCPA, CPA replied 7 years ago
JKCPA
JKCPA, CPA
Category: Tax
Satisfied Customers: 5,884
Experience: CPA with tax experience.
Verified
Hi Customer,

Thanks for your question. The answer is:

d. $70,000
The mortgage of $170,000 exceeds the property’s FMV of $160,000, so the amount of
the mortgage must be used to determine the amount of recognized gain. $170,000 mortgage - $100,000 basis = $70,000 gain.

Hope this helps!
JKCPA
JKCPA, CPA
Category: Tax
Satisfied Customers: 5,884
Experience: CPA with tax experience.
Verified
JKCPA and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask JKCPA Your Own Question
JKCPA
JKCPA
JKCPA, CPA
Category: Tax
Satisfied Customers: 5,884
5,884 Satisfied Customers
Experience: CPA with tax experience.

JKCPA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I have read where are no early distribution penalties for
I have read where are no early distribution penalties for early withdrawals on inherited IRAs. What if the beneficiary in under 59 1/2?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
726 satisfied customers
A trustee cashed in an ira but didn't distribute funds to
A trustee cashed in an ira but didn't distribute funds to the beneficiaries before the end of the year … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
726 satisfied customers
What does "Distributions Other Than Dividend Distributions"
what does "Distributions Other Than Dividend Distributions" mean on a corporate tax return? Was the amount listed actually giving to the shareholder? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
726 satisfied customers
Does a U.S. 1120 with a sole shareholder be required to file
Does a U.S. 1120 with a sole shareholder be required to file a F-5472 if the shareholder is filing under tie-breaker rules . The shareholder is filing F-5471 with regard to CFCs and F-114 as he is con… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
Can my LLC with US and Foreign members be a shareholder in
Can my LLC with US and Foreign members be a shareholder in an S Corporation? The K-1 would go to the LLC.… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
If a shareholder of an S-Corp, 100% shareholder, who did not
If a shareholder of an S-Corp, 100% shareholder, who did not pay himself a salary in 2016 and owes in excess of 48K when the K-1 comes over to personal tax and all the shareholder's monies are in the … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Question regarding taxation of partnership distributions and
Hi, question regarding taxation of partnership distributions and capital gains … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,310 satisfied customers
Do I need to do a w8 ben e for a liquidating distribution.
do I need to do a w8 ben e for a liquidating distribution … read more
abci168
abci168
Principal
27 satisfied customers
If an LLC holds stock in a company and then distributes the
If an LLC holds stock in a company and then distributes the stock to the members of the LLC, is it a taxable event? Or, does the taxable event occur when the member sells the stock?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
726 satisfied customers
Where do you report loans to and from shareholders on the
Where do you report loans to and from shareholders on the tax return for a business (C-Corp)? Where on the tax return do you report interest on a corporate loan to shareholders?… read more
abci168
abci168
Principal
27 satisfied customers
S Corporation shareholders to surrender stock to S
S Corporation shareholders to surrender stock to S corporation (all with basis) on 1-1-18 which will terminate S election and now stock re-issued to 4 operating companies as a C Corporation. Is there … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
For a home refinance ,I became an shareholder in 2016 in a
For a home refinance ,I became an shareholder in 2016 in a company that has given me a k1 for the first time in 2016, , will that income be considered for on my application… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Life Insurance Premiums for Shareholders greater than 2%
Life Insurance Premiums for Shareholders greater than 2% face value over $50,000 and both owners husband & wife are each other's beneficiary. The company pays for the premiums. Should the shareholders… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Corporation sole shareholder has received rent from the
corporation sole shareholder has received rent from the corporation for use of a part of his home as office space for the corporation. The part of the home rented is NOT a separate, detached part of t… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
I'm the principal shareholder in Californian LLC, with 51%
Hi,I'm the principal shareholder in Californian LLC, with 51% of shares. I have a hostile co-owner with 49% of the shares. Since forming the company in '13, we have been operating at a loss. I have be… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I am researching the handling of a distribution and
I am researching the handling of a distribution and redemption in the same year of a S Corp shareholder. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have an S corp that has 2 shareholders. 1 shareholder is
I have an S corp that has 2 shareholders. 1 shareholder is selling out to the other shareholder. I understand how to record the sellers side as far as distributions and taxable dividend for the amount… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Can an S Corporation distribute debt to its shareholders?
Can an S Corporation distribute debt to its shareholders? I have an S-Corporation with debt from a buyout of a previous shareholder. I would like to distribute that debt to myself to get it off the ba… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x