T2 entries for land sold to non arms length at FMV
Land sold to non arms length corporation for $1.00. Purchase cost of land was $2000 Since this is a non arms length transaction the FMV ($5200) has to be used as disposition value. Schedule 100 do I decrease the value of land by $2000 (purchase price) or the FMV ($5200). Would I be entering a gain or a loss on line 9609 Schedule 125? Is this correct - Schedule 6 - Part 2 (column 3) Proceeds of Disposition $5200, (column 4) ACB ($2000 initial cost + improvements = $5895), (column 5) Outlays $243. (Column 6) loss of $938. What other entries on T2 would this involve?