Basis – What’s the point of gain?

  • Creator
    Topic
  • May 21, 2020 at 12:01 am #3006804
    animalwithin
    Participant

    In my Roger book it states;

    “If the shareholder receives cash/property in addition to stock, gain is recognized up to the amount of cash/FV or property received.”

    This is the recognized gain that is being added in the shareholder basis equation. This would also be what is subtracted. If we’re zeroing it out, what’s the point of including it?

    *New to REG and I find all this to be very bizarre and studying slow so any help with regards to basis would be appreciated.

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