John and June,husband and Wife,have Owned Ruby Corporation for a Number
John and June,husband and wife,have owned Ruby Corporation for a number of years.Their basis in the Ruby stock,which they own jointly,is $200,000.The Ruby stock is Sec.1244 stock.Ruby Corporation liquidates,and John and June receive the following from the corporation: accounts receivable,$30,000 FMV; a car,$21,000 FMV; office furniture,$11,000 FMV; and $25,000 in cash.What is the amount and character of their gain or loss?
Charlene and Dennis each own 50% of Brewster Corporation and have owned it for five years.The adjusted bases of their Brewster stock are $80,000 and $40,000 respectively.Brewster Corporation liquidates and distributes $60,000 to Charlene in exchange for her stock.It distributes a parcel of land with a $140,000 FMV which is subject to a $90,000 mortgage to Dennis in exchange for his stock.Dennis assumes the mortgage and also receives $10,000 in cash.
a)What is the character and amount of each shareholder's gain or loss?
b)What is each shareholder's basis in the property received in the liquidation?
Jack Corporation is owned 75% by Sherri and 25% by Mark.Sherri and Mark have $125,000 and $50,000 bases in their stock,respectively.Jack Corporation adopts a plan of liquidation on March 1.On April 12,Sherri receives the following property as a liquidating distribution: cash of $30,000; land,$125,000 FMV; and 150 shares of Green Corporation stock,$30,000 FMV.The land is subject to a $20,000 mortgage.On the same date,Mark receives $10,000 FMV of Green stock (50 shares)and cash of $45,000 as a liquidating distribution.The land has a basis of $50,000 and the stock has a basis of $70,000 in Jack Corporation's hands.Both are capital assets to Jack Corporation and have been held for a number of years.
a)What is the amount and character of Jack Corporation's recognized gain or loss on the liquidating distributions?
b)What are the amounts and characters of Sherri and Mark's recognized gains or losses?
c)What are the bases of the land and stock to Sherri and Mark?
How is the gain/loss calculated if a shareholder has acquired stock at different times and at varying prices?