[Anonymous]

Hi Guys, quick question – hoping someone can help!

In regards to stock issuance for a corporation –

When you have:

Adjusted Basis: 100

FV: 200

Mortage given up: 300

I understand that you do:

100 – 300 = 200 = boot = gain

However, if the realized gain is less (200 – 100), then do I use that instead in this circumstance? I haven’t seen it applied when it comes to liabilities, but I have seen it applied when they get cash for their shares.

Thanks!!!!