REG – Tax Basis for C-Corps

  • Creator
    Topic
  • January 28, 2017 at 2:07 pm #1449291
    jc510
    Participant

    Hi,

    I’m a little confused with the tax basis for corps. I’ve seen some examples where they would add the cash contributed by shareholders, and other examples where it is not appropriate. Can someone please help explain?

    My understanding for the formula:

    Tax Basis of Corporation will be the greater of :
    1. FMV of Property – Liabilities on Property + Gain Recognized by Shareholder on Property + Cash sent to Shareholder

    2. Liabilities assumed by Corporation

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