It's actually quite simple! The assets transfer to the new corporation at the same basis that they had in the old corporation. It's as if the shareholder pulled the equipment out of the old company at its adjusted basis and then contributed it to the new company.
What if a loan exists?
Just close it out to equity and move the equipment and loan to the new entity.
What if there may be insolvency?
An insolvency worksheet is likely required to determine whether the cancellation of debt would be taxable or not.
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