Basira transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all of the stock.The land has a basis of $500,000 and debt of $300,000.Basira's taxable gain from this transaction is:

Question

Quizplus · Accepted Answer

Under IRC Section 351, no gain or loss is recognized if property is transferred to a corporation solely in exchange for stock and the transferor is in control of the corporation immediately after the exchange. Since Basira receives all the stock, she is in control, and thus, no gain is recognized.

Basira Transfers Land with a FMV of $900,000 to a Newly