What if you transfer AJB greater than FMV to corporation at formation

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    Topic
  • July 3, 2012 at 4:06 am #172405
    Manuelo
    Member

    Let’s say you transfer property to a corporation with Adjusted basis = $80,000.

    FMV = 60,000 in exchange for stock at formation.

    What will be the the shareholder’s basis in the stock he receives?

    I’m thinking Adjusted basis of $80,000, but then it is reduced by the difference of $20,000. So, basis in stock = $60,000.

    Thanks!

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