Supplement to Federal Income Tax Including Tax On Undistributed Net Income Cap
Supplement to Federal Income Tax Including Tax On Undistributed Net Income Cap
George Edwin Holmes
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62 Stock in a corporation is a valuable consideration for the transfer of real property, and a deed con- veying real estate to a corporation for such consideration is taxable. The value of the interest in the property con- veyed determines the amount of the tax. 63 Where a deed states that the transfer is made for a nominal considera- tion the tax must be computed upon the actual value of the interest or property conveyed. 64 In a case of an exchange of two properties the deeds transferring tit...le to each are subject to tax, which should, in each case, be computed on the basis of the actual value of the interest or property conveyed (exclusive of the value of any lien or incum- brance remaining thereon at the time of exchange). 65 Incumbrance on Property at the Time op Sale. The consideration or value on which the tax is based is exclusive of the value of any lien or incumbrance remain- ing thereon at the time of sale. The words in italics were not contained in the former law and it seems were inserted to limit the exclusion to liens or incumbrances other than purchase money mortgages.
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