Billy Barker, a single taxpayer, has basis in IRC 1244 stock of $150,000. Billy sells the stock for $60,000. What is his gain or loss? How much is ordinary? How much is capital?
Krissy Kraus and Manny Martin form K&M Corp. Krissy transfers land with an adjusted basis of $20,000 for stock worth $18,000 and $3,000 cash. Manny transfers a backhoe with an adjusted basis of $20,000 for stock worth $11,000 and $8,000 cash. What is Krissy's realized gain/loss? Will she recognize any of that gain/loss? What is Manny's realized gain/loss? Will he recognize any of that loss?