Boston, Inc., made a capital contribution of investment property to its 100 percent owned subsidiary, Hartford Company.The investment property had a fair market value of $1,000,000 and a tax basis to Boston of $250,000.What are the tax consequences to Boston, Inc., on the contribution of the investment property to Hartford Company and what is the tax basis of the investment property to Hartford Company after the contribution to capital?

Question

Quizplus · Accepted Answer

The Answer of Boston, Inc., made a capital contribution of investment property to its 100 percent owned subsidiary, Hartford Company.The investment property had a fair market value of $1,000,000 and a tax basis to Boston of $250,000.What are the tax consequences to Boston, Inc., on the contribution of the investment property to Hartford Company and what is the tax basis of the investment property to Hartford Company after the contribution to capital?