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ire Corporation distributes property (basis of $225,000, fair market value of $300,000) to a shareholder in a distribution that is a qualifying stock redemption. The property is subject to a liability of $160,000 that the shareholder assumes. Determine the basis of the property to the shareholder.

User Fazil
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1 Answer

1 vote

Answer:

$300,000

Step-by-step explanation:

The fair market value of the property is the basis in property received in a qualifying stock redemption to shareholder which is $300,000.

So, $300,000 is the amount that will serve as the basis of the property to the shareholder.

User Vitamin
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