SlideShare a Scribd company logo
Davis transferred real property owned by her to Newco in exchange for 100% of the stock of
Newco. Davis had placed a $150 , 000 mortgage on the property 4 years earlier using the
proceeds to purchase tax exempt securities. Davis had an adjusted basis in the property of $200 ,
000 and the property had a FMV of $500 , 000 at the time of the transfer. (a) What are the tax
consequences to Davis? (b) Assume that Davis placed a second mortgage in the amount of $50 ,
000 on the real property 3 months before the transfer. The proceeds of this second mortgage
were also used to purchase tax exempt securities. What are the tax consequences of the transfer
of the real property to Newco?

More Related Content

More from KeithYa5Gibsong

Almt Francine- a widiow- died recently- survived by a daughter (Emily).pdf
Almt Francine- a widiow- died recently- survived by a daughter (Emily).pdfAlmt Francine- a widiow- died recently- survived by a daughter (Emily).pdf
Almt Francine- a widiow- died recently- survived by a daughter (Emily).pdf
KeithYa5Gibsong
 
All of the following are generally considered synarthrotic joints exce.pdf
All of the following are generally considered synarthrotic joints exce.pdfAll of the following are generally considered synarthrotic joints exce.pdf
All of the following are generally considered synarthrotic joints exce.pdf
KeithYa5Gibsong
 
all the information provided to the student Key concepts - When ATP is.pdf
all the information provided to the student Key concepts - When ATP is.pdfall the information provided to the student Key concepts - When ATP is.pdf
all the information provided to the student Key concepts - When ATP is.pdf
KeithYa5Gibsong
 
All of the following are necessary for budgets to be effective except-.pdf
All of the following are necessary for budgets to be effective except-.pdfAll of the following are necessary for budgets to be effective except-.pdf
All of the following are necessary for budgets to be effective except-.pdf
KeithYa5Gibsong
 
All of the following are functions of NYC Community Boards EXCEPT- Pre.pdf
All of the following are functions of NYC Community Boards EXCEPT- Pre.pdfAll of the following are functions of NYC Community Boards EXCEPT- Pre.pdf
All of the following are functions of NYC Community Boards EXCEPT- Pre.pdf
KeithYa5Gibsong
 
All of the following are chambers of lymph nodes except a- The cortica.pdf
All of the following are chambers of lymph nodes except a- The cortica.pdfAll of the following are chambers of lymph nodes except a- The cortica.pdf
All of the following are chambers of lymph nodes except a- The cortica.pdf
KeithYa5Gibsong
 
All of the following are considered arguments in favour of paying divi.pdf
All of the following are considered arguments in favour of paying divi.pdfAll of the following are considered arguments in favour of paying divi.pdf
All of the following are considered arguments in favour of paying divi.pdf
KeithYa5Gibsong
 
AlphaInc will pay a dividend of $0-90 in one year from now- According.pdf
AlphaInc will pay a dividend of $0-90 in one year from now- According.pdfAlphaInc will pay a dividend of $0-90 in one year from now- According.pdf
AlphaInc will pay a dividend of $0-90 in one year from now- According.pdf
KeithYa5Gibsong
 
All odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdf
All odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdfAll odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdf
All odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdf
KeithYa5Gibsong
 
All these descriptions are characteristic of human populations in indu.pdf
All these descriptions are characteristic of human populations in indu.pdfAll these descriptions are characteristic of human populations in indu.pdf
All these descriptions are characteristic of human populations in indu.pdf
KeithYa5Gibsong
 
An accounting year ending on a date other than December 31 is referred.pdf
An accounting year ending on a date other than December 31 is referred.pdfAn accounting year ending on a date other than December 31 is referred.pdf
An accounting year ending on a date other than December 31 is referred.pdf
KeithYa5Gibsong
 
An advantage of hiring third-country nationals as overseas managers is.pdf
An advantage of hiring third-country nationals as overseas managers is.pdfAn advantage of hiring third-country nationals as overseas managers is.pdf
An advantage of hiring third-country nationals as overseas managers is.pdf
KeithYa5Gibsong
 
All of the following are steps in the process of phagocytosis- What st.pdf
All of the following are steps in the process of phagocytosis- What st.pdfAll of the following are steps in the process of phagocytosis- What st.pdf
All of the following are steps in the process of phagocytosis- What st.pdf
KeithYa5Gibsong
 
all sets that include A and B all elements in either A or B all elemen.pdf
all sets that include A and B all elements in either A or B all elemen.pdfall sets that include A and B all elements in either A or B all elemen.pdf
all sets that include A and B all elements in either A or B all elemen.pdf
KeithYa5Gibsong
 
Amphiblastula larvae are unique in development because of their stingi.pdf
Amphiblastula larvae are unique in development because of their stingi.pdfAmphiblastula larvae are unique in development because of their stingi.pdf
Amphiblastula larvae are unique in development because of their stingi.pdf
KeithYa5Gibsong
 
Ampicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdf
Ampicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdfAmpicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdf
Ampicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdf
KeithYa5Gibsong
 
American Foods Corporation- a consumer products company- wants to crea.pdf
American Foods Corporation- a consumer products company- wants to crea.pdfAmerican Foods Corporation- a consumer products company- wants to crea.pdf
American Foods Corporation- a consumer products company- wants to crea.pdf
KeithYa5Gibsong
 
American often think of themselves as quite diverse in their political.pdf
American often think of themselves as quite diverse in their political.pdfAmerican often think of themselves as quite diverse in their political.pdf
American often think of themselves as quite diverse in their political.pdf
KeithYa5Gibsong
 
Amazon- GEICO- Netflix- and Expedia are companies invested in which of.pdf
Amazon- GEICO- Netflix- and Expedia are companies invested in which of.pdfAmazon- GEICO- Netflix- and Expedia are companies invested in which of.pdf
Amazon- GEICO- Netflix- and Expedia are companies invested in which of.pdf
KeithYa5Gibsong
 
Amaani Lyle- an African American woman- was hired by Warner Brothers T.pdf
Amaani Lyle- an African American woman- was hired by Warner Brothers T.pdfAmaani Lyle- an African American woman- was hired by Warner Brothers T.pdf
Amaani Lyle- an African American woman- was hired by Warner Brothers T.pdf
KeithYa5Gibsong
 

More from KeithYa5Gibsong (20)

Almt Francine- a widiow- died recently- survived by a daughter (Emily).pdf
Almt Francine- a widiow- died recently- survived by a daughter (Emily).pdfAlmt Francine- a widiow- died recently- survived by a daughter (Emily).pdf
Almt Francine- a widiow- died recently- survived by a daughter (Emily).pdf
 
All of the following are generally considered synarthrotic joints exce.pdf
All of the following are generally considered synarthrotic joints exce.pdfAll of the following are generally considered synarthrotic joints exce.pdf
All of the following are generally considered synarthrotic joints exce.pdf
 
all the information provided to the student Key concepts - When ATP is.pdf
all the information provided to the student Key concepts - When ATP is.pdfall the information provided to the student Key concepts - When ATP is.pdf
all the information provided to the student Key concepts - When ATP is.pdf
 
All of the following are necessary for budgets to be effective except-.pdf
All of the following are necessary for budgets to be effective except-.pdfAll of the following are necessary for budgets to be effective except-.pdf
All of the following are necessary for budgets to be effective except-.pdf
 
All of the following are functions of NYC Community Boards EXCEPT- Pre.pdf
All of the following are functions of NYC Community Boards EXCEPT- Pre.pdfAll of the following are functions of NYC Community Boards EXCEPT- Pre.pdf
All of the following are functions of NYC Community Boards EXCEPT- Pre.pdf
 
All of the following are chambers of lymph nodes except a- The cortica.pdf
All of the following are chambers of lymph nodes except a- The cortica.pdfAll of the following are chambers of lymph nodes except a- The cortica.pdf
All of the following are chambers of lymph nodes except a- The cortica.pdf
 
All of the following are considered arguments in favour of paying divi.pdf
All of the following are considered arguments in favour of paying divi.pdfAll of the following are considered arguments in favour of paying divi.pdf
All of the following are considered arguments in favour of paying divi.pdf
 
AlphaInc will pay a dividend of $0-90 in one year from now- According.pdf
AlphaInc will pay a dividend of $0-90 in one year from now- According.pdfAlphaInc will pay a dividend of $0-90 in one year from now- According.pdf
AlphaInc will pay a dividend of $0-90 in one year from now- According.pdf
 
All odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdf
All odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdfAll odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdf
All odd integers from 50 to 70 - -} System-out- (10) 0--- move to the.pdf
 
All these descriptions are characteristic of human populations in indu.pdf
All these descriptions are characteristic of human populations in indu.pdfAll these descriptions are characteristic of human populations in indu.pdf
All these descriptions are characteristic of human populations in indu.pdf
 
An accounting year ending on a date other than December 31 is referred.pdf
An accounting year ending on a date other than December 31 is referred.pdfAn accounting year ending on a date other than December 31 is referred.pdf
An accounting year ending on a date other than December 31 is referred.pdf
 
An advantage of hiring third-country nationals as overseas managers is.pdf
An advantage of hiring third-country nationals as overseas managers is.pdfAn advantage of hiring third-country nationals as overseas managers is.pdf
An advantage of hiring third-country nationals as overseas managers is.pdf
 
All of the following are steps in the process of phagocytosis- What st.pdf
All of the following are steps in the process of phagocytosis- What st.pdfAll of the following are steps in the process of phagocytosis- What st.pdf
All of the following are steps in the process of phagocytosis- What st.pdf
 
all sets that include A and B all elements in either A or B all elemen.pdf
all sets that include A and B all elements in either A or B all elemen.pdfall sets that include A and B all elements in either A or B all elemen.pdf
all sets that include A and B all elements in either A or B all elemen.pdf
 
Amphiblastula larvae are unique in development because of their stingi.pdf
Amphiblastula larvae are unique in development because of their stingi.pdfAmphiblastula larvae are unique in development because of their stingi.pdf
Amphiblastula larvae are unique in development because of their stingi.pdf
 
Ampicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdf
Ampicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdfAmpicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdf
Ampicillin is an antibiotic that targets the cell wall- AmpicillIn's m.pdf
 
American Foods Corporation- a consumer products company- wants to crea.pdf
American Foods Corporation- a consumer products company- wants to crea.pdfAmerican Foods Corporation- a consumer products company- wants to crea.pdf
American Foods Corporation- a consumer products company- wants to crea.pdf
 
American often think of themselves as quite diverse in their political.pdf
American often think of themselves as quite diverse in their political.pdfAmerican often think of themselves as quite diverse in their political.pdf
American often think of themselves as quite diverse in their political.pdf
 
Amazon- GEICO- Netflix- and Expedia are companies invested in which of.pdf
Amazon- GEICO- Netflix- and Expedia are companies invested in which of.pdfAmazon- GEICO- Netflix- and Expedia are companies invested in which of.pdf
Amazon- GEICO- Netflix- and Expedia are companies invested in which of.pdf
 
Amaani Lyle- an African American woman- was hired by Warner Brothers T.pdf
Amaani Lyle- an African American woman- was hired by Warner Brothers T.pdfAmaani Lyle- an African American woman- was hired by Warner Brothers T.pdf
Amaani Lyle- an African American woman- was hired by Warner Brothers T.pdf
 

Recently uploaded

Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...
PsychoTech Services
 
Bonku-Babus-Friend by Sathyajith Ray (9)
Bonku-Babus-Friend by Sathyajith Ray  (9)Bonku-Babus-Friend by Sathyajith Ray  (9)
Bonku-Babus-Friend by Sathyajith Ray (9)
nitinpv4ai
 
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdfمصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
سمير بسيوني
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
Celine George
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Himanshu Rai
 
A Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two HeartsA Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two Hearts
Steve Thomason
 
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdfREASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
giancarloi8888
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
danielkiash986
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Nguyen Thanh Tu Collection
 
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumPhilippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
MJDuyan
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
Krassimira Luka
 
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching AptitudeUGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
S. Raj Kumar
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Nicholas Montgomery
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Nguyen Thanh Tu Collection
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
History of Stoke Newington
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
mulvey2
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
Jean Carlos Nunes Paixão
 
Electric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger HuntElectric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger Hunt
RamseyBerglund
 
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxBeyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
EduSkills OECD
 

Recently uploaded (20)

Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...Gender and Mental Health - Counselling and Family Therapy Applications and In...
Gender and Mental Health - Counselling and Family Therapy Applications and In...
 
Bonku-Babus-Friend by Sathyajith Ray (9)
Bonku-Babus-Friend by Sathyajith Ray  (9)Bonku-Babus-Friend by Sathyajith Ray  (9)
Bonku-Babus-Friend by Sathyajith Ray (9)
 
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdfمصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
 
A Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two HeartsA Visual Guide to 1 Samuel | A Tale of Two Hearts
A Visual Guide to 1 Samuel | A Tale of Two Hearts
 
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdfREASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
 
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumPhilippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
 
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching AptitudeUGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
 
Electric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger HuntElectric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger Hunt
 
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxBeyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
 

Davis transferred real property owned by her to Newco in exchange for.docx

  • 1. Davis transferred real property owned by her to Newco in exchange for 100% of the stock of Newco. Davis had placed a $150 , 000 mortgage on the property 4 years earlier using the proceeds to purchase tax exempt securities. Davis had an adjusted basis in the property of $200 , 000 and the property had a FMV of $500 , 000 at the time of the transfer. (a) What are the tax consequences to Davis? (b) Assume that Davis placed a second mortgage in the amount of $50 , 000 on the real property 3 months before the transfer. The proceeds of this second mortgage were also used to purchase tax exempt securities. What are the tax consequences of the transfer of the real property to Newco?