A person who performs services for a corporation in exchange for stock will be treated as a member of the transferring group even if that person only transfers a relatively small amount of property to the corporation.
True or False
True.
A person who performs services for a corporation in exchange for stock will be treated as a member of the transferring group even if that person only transfers a relatively small amount of property to the corporation.
A person who performs services for a corporation in exchange for stock will be treated as...
A person who performs services for a corporation in exchange for stock cannot be treated as a member of the transferring group even if that person also transfers some property to the corporation. True False
Please check if my answers to first part is correct. Discussion Question 4-6 (LO. 1) 1. Complete the statements below regarding "what is the control requirement of § 351". The control requirement specifies that the person or persons transferring property to the corporation must own, immediately after the transfer, stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote, and at least 75% of the total number of shares of all other classes of...
As a general rule: I. Income from property is taxed to the person who owns the property. II. Income from services is taxed to the person who performs the services as an agent for another taxpayer. III. The person to whom income from property is assigned must pay tax on that income. IV. The person who receives the benefit of the income must pay the tax on the income. a. Only I and II are true. b. Only I is...
When a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange qualifying under § 351, the transferor shareholder’s basis in stock received in the transferee corporation is increased by the amount of the mortgage on the property. True or False? Please explain.
True or False Stock received in exchange for services provided to the corporation in the formation of the corporation can never be counted in determining if the control test is met for 5351 purposes. Stock received in exchange for services provided to the corporation in the formation of the corporation can never be counted in determining if the control test is met for 5351 purposes
A stock redemption is treated as a sale or exchange of the shares if the shareholder whose shares are redeemed is a corporation. True or False
for a taxpayer transferring property to a corporation in a section 351 transaction the stock received in the transfaction is given a carryover basis. true or false In a 351 transaction any corporate debt or securities received are treated as boot because they donot qualify as stock. true or false
14-19 please 14. For Section 351 transfers, immediately after the exchange a. requires simultaneous transfer, if two or more transferors b. allows transfers to occur up to two years apart c. allows transfers to occur up to three years apart d. means that transfers should occur as close together as possible e, none of the above 13. Section 351 transfers for property and services are acceptable as long as the property value is at least a. 5% of the value...
Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $160,800 in exchange for 400 shares of stock. Ethan contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $354,560; fair market value $443,200) in exchange for 1,600 shares. Determine Marie and Ethan's current income, gain, or loss and calculate the basis that each...
Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $144,000 in exchange for 400 shares of stock. Ethan contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $300,800; fair market value $376,000) in exchange for 1,600 shares. Determine Marie and Ethan's current income, gain, or loss and calculate the basis that each...