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Common Transaction Form

Common Transaction Form

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Instructions and help about Common Transaction Form

in this video we're going to discuss how to calculate the transfer's basis when you have a section 351 transaction so quick review the three requirements of section 351 are the the transfer ORS are transferring property in exchange for a corporation stock and then they have control of the corporation immediately afterwards so let's jump into an example let's say again that you own a ferris wheel and that the adjusted basis or the cost of that Ferris wheel was $100,000 but now the fair market value of the ferris wheel is 975,000 so you have a friend named booso the clown and Bozo owns 100% all 20 shares of a corporation called Seven Flags amusement park and what you're doing is you're going to transfer your Ferris wheel to the corporation to Boo's Corporation and now what Boo's Corporation Seven Flags is going to give you an exchange is it's going to give you 80 shares uh it's going to give you 80 shares of

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