If taxpayer A transfers property with an adjusted basis of $10,000 and a fair market value of $50,000 to a controlled corporation in exchange for stock worth $30,000, cash of $10,000, and other property with a fair market value of $10,000, A’s “amount realized” under §1001(b) is $50,000 and A’s realized gain under §1001(a) is $40,000, but only $20,000 of the gain is recognized under §351(b). View Less >>
Boot is the consideration being received by the target company in form of cash or other property and not in shares. Shares means transfer of ownership from the target company to the acquired company but consideration of cash or other property means realizable gain which is taxable. Get solution

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