Facts: Joe contributes property with FMV of $100,000 and basis of $40,000 to JH Inc. a.If JH Inco takes property subject to Joe’s liability or assumes Joe’s liability of $20,000. Compute the gain realized and recognized if any. This is not a Section 351 transaction. b.Assume the same facts as above, except that the transfer is a Section 351 transaction. Compute the gain realized and recognized if any. c.Assume the same facts as above, except that the transfer is a Section 351 transaction and the liability does not have a business purpose. Compute the gain realized and recognized if any. d.Assume the same facts as above, except that the transfer is a section 351 transaction, the liability is $45,000, the JH stock is worth $55,000 and the section 357(b) does not apply. Compute the gain realized and recognized if any.
