Jiang Contributes Land with an Adjusted Basis of $85,000 and a Fair

question 98

Essay

Jiang contributes land with an adjusted basis of $85,000 and a fair market value of $100,000 to a business entity in which she is an 80% owner on the first day of the tax year. Discuss the tax consequences to Jiang if the business entity sells the land six months later for $120,000 if:

a. The business entity is a partnership.
b. The business entity is a C corporation.
c. The business entity is an S corporation.

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Definitions:

Unethical Behaviour

Actions that violate moral or professional guidelines, often to gain a personal or organizational advantage.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Aggressive Sales

Sales strategies that are assertive and can sometimes be perceived as pushy, focusing on closing deals quickly and maximizing profits.

Frequent Perpetrators

Individuals or entities that consistently engage in harmful or criminal activities regularly.