What are the tax consequences to eagle corporation

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Reference no: EM133541886

Question: Receipt of Boot On January 1, 20x8 you transfer §1231 property (which qualifies as property under §351) with a basis of $50,000 and a fair market value of $110,000 to Eagle Corporation (a newly formed entity) in return for 100 shares of stock and $10,000 in cash. You acquired the land on January 1, 20x3. On January 1, 20x8 an unrelated individual also transfers $100,000 in cash to Eagle Corporation in return for 100 shares of stock. a) Does this transaction qualify under IRC §351? b) What are the tax consequences to you as a result of this transaction? (Consider income tax, basis in the stock received, and holding period for the stock received). c) What are the tax consequences to Eagle Corporation as a result of this transaction?

Reference no: EM133541886

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