Capital Contributions baccara in lineaThis section explains the tax treatment of contributions fromshareholders and nonshareholders. Paid-in capital.Contributions to the capital of a corporation, whether or not byshareholders, are paid-in capital. These contributions are not taxableto the corporation. Bucharest hotelsHowever, contributions to a corporation in aid of construction orany other contribution as a customer or potential customer is taxableto the corporation. Basis.The basis of property contributed to capital by a shareholder isthe same as the basis the shareholder had in the property increased byany gain recognized on the exchange. The basis of property contributed to capital by a person other thana shareholder is zero. hotel rooms Hall in TirolIf a corporation receives a cash contribution from a person otherthan a shareholder, reduce the basis of property acquired with themoney during the 12-month period beginning on the day it received thecontribution by the amount of the contribution. If the amountcontributed is more than the cost of the property acquired, thenreduce, but not below zero, the basis of the other properties held bythe corporation on the last day of the 12-month period in thefollowing order. Depreciable property. Amortizable property. Property subject to cost depletion but not to percentagedepletion. All other remaining properties. barcelohotel SopotReduce the basis of property in each category to zero before goingto the next category. There may be more than one piece of property in each category. Basethe reduction of the basis of each property on the ratio of the basisof each piece of property to the total bases of all property in thatcategory. If the corporation wishes to make this adjustment in someother way, it must get IRS consent. The corporation files a requestfor consent with its income tax return for the tax year in which itreceives the contribution.