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Tax Consequences

Author: Client Uploads
December 27th, 2020

1. Is the formation of Lakeside Inn Corp. a taxable event? 2. What are the tax consequences to the corporation and the 2 shareholders upon the formation of Lakeside Inn Corp.

a. Is the formation of the corporation a taxable transaction for the shareholders?

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b. What is the gain or loss realized by each shareholder?

c. What is the gain or loss recognized by each shareholder

d. What is the basis of each shareholder in his corporation interest?

e. What is the corporation’s basis in the property transferred by the shareholders?

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