"W8EJO" <rfmscpa[at]earthlink.net> wrote:

- quote -

I suggest that you check out section 351 & 357 of the
Internal revenue code. My suspusion is that you had a
Schedule C which was incorporated. If this is the case
sections 351 & 357 become MANDATORY and effect the basis of
your stock in the corporation.

Sorry but this is not a DIY project.

--
Regards,

Mark Rigotti

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An 1120 Corp aquires the assets of a related, sked C, LLC
for price in excess of BV. Both entities 100% owned &
controlled by the same individual.

Details:
Purchase price: $40,000

On LLC's Books:
Vehicle basis ($10,000)
Franchise fee basis (10,000)
Gain (20,000)

On 1120 Corp. books:
Vehicle $10,000
Franchise fee $10,000
Goodwill $20,000 (sec.197 amortizable over 15 years)

Is this correct?

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