Jiang contributes land with an adjusted basis of $85,000 and a fair market value of $100,000 to a business entity in which she is an 80% owner on the first day of the tax year. Discuss the tax consequences to Jiang if the business entity sells the land six months later for $120,000 if:

a. The business entity is a partnership.
b. The business entity is a C corporation.
c. The business entity is an S corporation.

Question

a. The business entity is a partnership.
b. The business entity is a C corporation.
c. The business entity is an S corporation.

Quizplus · Accepted Answer

The Answer of Jiang contributes land with an adjusted basis of $85,000 and a fair market value of $100,000 to a business entity in which she is an 80% owner on the first day of the tax year. Discuss the tax consequences to Jiang if the business entity sells the land six months later for $120,000 if:

a. The business entity is a partnership.
b. The business entity is a C corporation.
c. The business entity is an S corporation.

Jiang Contributes Land with an Adjusted Basis of $85,000 and a Fair