[Anonymous]

Wiley Question –

Green transferred land and building to Apex (Corp) for 500 shares of common stock (150K, 50% total ownership).

Building Basis = 120K

FMV = 200K

Mortgage = 60K

Mortgage assumed by Apex. Basis of land and building to Apex?

Answer = 120K

Isn’t the assumption of the mortgage boot???

[kip_snoodles]

This would be boot received if the mortgage was greater than the basis of the property. Since it is not, the basis to the corp is just the normal basis of the property contributed.

[Author]

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