What will your taxable gain be in the transaction


Problem: You and a developer get together to form a corporation that will build a shopping mall on some land you own near a major planned interchange of I-540. The developer contributes $10 million in cash, receiving 50% of the stock of the corporation, while you contribute the land in exchange for the other 50%. Your basis in the land is $100,000. What will your taxable gain be in the transaction?

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Taxation: What will your taxable gain be in the transaction
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