C-Corp Formation Help!! SIM On Becker

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  • #3310411
    Ninja Albert
    Participant

    Hi All – Becker Question:

    if anyone can help me with the following clarification regarding C-corp formation

    The final way a corp can be formed is how the 80% rule calculated

    3 partners

    Larry owns 30% contributed 200k Cash and $100K worth of services
    Morgan owns 40% contributed land FV $400k Basis $250k
    carl owns 30% contributed land FV $600k Mortgage $300k and basis $150k

    What is Morgans basis on Stock and what is Corp basis of property? Is Morgan an example of under 80% or over 80%, because Larry contributed service of $100k?

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