Andre formed a corporation and owns all of the stock. He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation. Andre's taxable gain is:

Question

Quizplus · Accepted Answer

Andre's taxable gain is the amount of cash received ($1,000) because the transaction qualifies for non-recognition of gain under IRC Section 351, except to the extent of boot received.

Andre Formed a Corporation and Owns All of the Stock