Question

Partnership is owned 25% each by A, his wife, his wife's father and X Corporation, in which A is a 50% shareholder. What are the tax consequences to the parties involved in the following sales? (a) During the year the partnership sells A some land in which it has a basis of $50,000 for its FMV of $40,000. In the succeeding year, A sells the land to B for $45,000.

Answer 1

solution
given that
Partnership is owned 25% each by A, his wife, his wife's father and X Corporation, in which A is a 50% shareholder.
What are the tax consequences to the parties involved in the following sales:
(a) During the year the partnership sells A some land in which it has a basis of $50,000 for its FMV of $40,000. In the succeeding year, A sells the land to B for $45,000.
given land = 50000
also given fmv of land is $40000
a sells land to be foe $45000
now the tax consequences are
b is taxable personally because he bought land for personal use
therfore
b is taxable upto $45000