Corp Tax

Question 1

Shareholder Basis

Answer 1

Adj Basis of prop transferred
+ Gain Recognized ( only if less than 80% ownership)
- Boot Received ( includes assumption of liab)
= Basis

Question 2

Property basis

Answer 2

Is ADJ basis for shareholders and corps not FMV

Question 3

Section 1244 - small business corps

Answer 3

loss on worthless stock is ordinary loss
taxpayer must be original owner
taxpayer must be individual or partnership
50K(single) 100K(MFJ) limit - remainder is cap loss
must have been exchanged for money
shareholder equity must not be in excess of 1M
both common and preferred stock allowed

Question 4

Charitable contributions limit

Answer 4

10% of income