An S corporation distributes land to its shareholders. The land has a $60,000 basis and a $90,000 FMV. The basis of the land to the shareholders is
A)$0.
B)$30,000.
C)$60,000.
D)$90,000.

Name: An S corporation distributes land to its shareholders. The land has a $60,000 basis and a $90,000 FMV. The basis of the land to the shareholders is A)$0. B)$30,000. C)$60,000. D)$90,000.
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Question

Quizplus · Accepted Answer

The basis of the land to the shareholders is its fair market value (FMV) at the time of distribution, which is $90,000.

An S Corporation Distributes Land to Its Shareholders