A recovers its tax basis
of $500 in the stock of Y and recognizes gain of $2,500 on the sale.
Each STWD stockholder should consult a personal tax advisor regarding the calculation of their tax basis
and the tax consequences of any distribution.
Like any other investment a taxpayer makes, a personal residence has an initial tax basis
that fluctuates over time.
of the property by the caregiver may become critical if the caregiver never establishes the residence as a personal residence.
3) Determined, in the case of the McDermott stock, by dividing the aggregate tax basis
allocable to the McDermott shares in the table above by 1,000 (the number of McDermott shares owned before the spin-off) and, in the case of the B&W stock, by dividing the aggregate tax basis
allocable to the B&W shares in the table above by 500 (the number of B&W shares received in the spin-off).
81-70 recognizes that in the event of a widely held target company the potential exists for shareholders to not respond to a tax basis
170(e)(1) generally limits the deduction for charitable contributions of inventory with an FMV above tax basis
to the donor's tax basis
in the inventory.
If the selling C corp has operating losses, it may be able to use these losses to shelter the gain on an asset sale, while still giving the buyer a stepped-up asset tax basis
The fresh start rules were intended to provide for a deemed disposition of property of the business and a deemed reacquisition of that property, with the income, gains, and losses being included in surplus for the final year of active business status, and the income from the FAPI business being computed in subsequent years by reference to the new tax basis
of the assets of the business.
If the debt is non-recourse, the debtor recognizes a gain or loss which is measured by how much the total outstanding loan balance exceeds or falls short of the property's tax basis
The law provides that inherited property takes as its income tax basis
the fair market value on the day the owner dies.
704(d) provides that a partner's distributive share of loss is allowable to the extent of the partner's adjusted tax basis
in his interest in the partnership at the end of the partnership year in which the loss occurred.