Gladys contributes land with an adjusted basis of $85,000 and a fair market value of $100,000 to a business entity in which she is an 80% owner on the first day of the tax year.Discuss the tax consequences to Gladys if the business entity sells the land six months later for $120,000 if:
a. The business entity is a partnership?

b. The business entity is a C corporation?

c. The business entity is an S corporation?

Question

Gladys contributes land with an adjusted basis of $85,000 and a fair market value of $100,000 to a business entity in which she is an 80% owner on the first day of the tax year.Discuss the tax consequences to Gladys if the business entity sells the land six months later for $120,000 if:
 a. The business entity is a partnership?

b. The business entity is a C corporation?

c. The business entity is an S corporation?

Quizplus · Accepted Answer

The Answer of Gladys contributes land with an adjusted basis of $85,000 and a fair market value of $100,000 to a business entity in which she is an 80% owner on the first day of the tax year.Discuss the tax consequences to Gladys if the business entity sells the land six months later for $120,000 if:
 a. The business entity is a partnership?

b. The business entity is a C corporation?

c. The business entity is an S corporation?

Gladys Contributes Land with an Adjusted Basis of $85,000 and a Fair