Joan Barkin is going to transfer the depreciable assets of her unincorporated business to a corporation in which she will be the sole shareholder. Relevant information on the assets is as follows: Joan would like to defer as much current taxation as possible. At what value should she transfer each of the assets? Justify your conclusions. If she elects that value, what are the tax consequences for Joan in each case?

Question

Joan Barkin is going to transfer the depreciable assets of her unincorporated business to a corporation in which she will be the sole shareholder. Relevant information on the assets is as follows:  Joan would like to defer as much current taxation as possible. At what value should she transfer each of the assets? Justify your conclusions. If she elects that value, what are the tax consequences for Joan in each case?

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The Answer of Joan Barkin is going to transfer the depreciable assets of her unincorporated business to a corporation in which she will be the sole shareholder. Relevant information on the assets is as follows:  Joan would like to defer as much current taxation as possible. At what value should she transfer each of the assets? Justify your conclusions. If she elects that value, what are the tax consequences for Joan in each case?

Joan Barkin Is Going to Transfer the Depreciable Assets of Her