The stock of Eagle,Inc.is owned as follows:
Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.
Tom's realized loss is $13,000.
However,his recognized loss is $0 because the loss is disallowed as a § 267 related party transaction.

Question

The stock of Eagle,Inc.is owned as follows:
  Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.
Tom's realized loss is $13,000.
  However,his recognized loss is $0 because the loss is disallowed as a § 267 related party transaction.

Quizplus · Accepted Answer

The Answer of The stock of Eagle,Inc.is owned as follows:
  Tom sells land and a building to Eagle,Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.
Tom's realized loss is $13,000.
  However,his recognized loss is $0 because the loss is disallowed as a § 267 related party transaction.

The Stock of Eagle,Inc.is Owned as Follows