Homework Answers
True) A Corporation holding period for property received under section 351 includes the holding period of transferor's shareholder.
The transferee corporation’s holding period of property received in section 351 transaction includes the transferor's holding period of the property because:-
Corporation basis in the property is determined by reference to the transferor’s basis.
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35t Indudes the holding period of the transferor shareholder A corporation's holding period for property received...
A shareholder's holding period for stock received under $ 351 can include the holding period of...
A shareholder's holding period for stock received under $ 351 can include the holding period of the property transferred to the corporation. True False LITTLI ..
(13) Identify which of the following statements is true. A) If stock and boot property are...
(13) Identify which of the following statements is true. A) If stock and boot property are both received in a Sec. 351 exchange, the transferor must allocate the total basis in the contributed property between the stock and boot property based on the relative FMVs of the stock and the boot property. B) The adjusted basis of stock received in a Sec. 351 transaction is computed by deducting the deferred loss from the FMV of the stock received. C) The...
16. The transferor's holding period for any stock received in exchange for a capital asset ...
16. The transferor's holding period for any stock received in exchange for a capital asset under a tax free Sect.351(a) exchange A) begins on the day after the exchange. B) includes the holding period for the property transferred. C) begins on the day of the exchange. D) none of the above
Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation...
Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation must recognize a loss when transferring noncash boot property that has declined in value and its stock to a transferor as part of a Sec. 351 exchange Section 351 provides for nonrecognition of gain for the transferee corporation when it distributes appreciated and that is boot property to a shareholder The transferee corporation's holding period for assets acquired in an exchange meeting the Sec....
When a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange...
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.
QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the...
QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the fair market value of the property. With respect to the sale, The shareholder has a basis of S175,000 in the property. The corporation has a tax loss of S50,000. The corporation does not recognize a tax loss but reduces its E & P account $50,000. The shareholder has a constructive dividend of $50,000. None of the above QUESTION 8 Assume taxable income is the...
Doug, Elbert, and Fran form DEF Corporation by transferring the following: From Transferor Property Transferred Stock...
Doug, Elbert, and Fran form DEF Corporation by transferring the following: From Transferor Property Transferred Stock Received 10-Year Notes Doug $75,000 $75,000 $0 Elbert $25,000 $25,000 $0 Fran $25,000 $0 $25,00 Would Does the above transfer qualify Doug and Elbert for nonrecognition of gain or loss under Code Sec. 351? A. No, the note disqualifies the transfer. B. No, control was not obtained in the transfer. C. Yes, the note is not considered stock and control is obtained D. Yes,...
Services are not considered property for the purposes of an IRC Section 351 transfer a contributing...
Services are not considered property for the purposes of an IRC Section 351 transfer a contributing shareholder receiving shares in exchange for the services rendered basis in the shares received. a. True b. False
Discussion Question 4-11 (LO. 3) With respect to the calculation of the basis of stock received...
Discussion Question 4-11 (LO. 3) With respect to the calculation of the basis of stock received by a shareholder in a $ 351 transfer, label each of the following as being either "True" or "False" a. If a shareholder transfers a liability to the corporation along with property, the basis in the stock received is reduced by the amount of the liability transferred to the corporation. b. Section 362(e)(2) generally requires the corporation to step down the carryover basis for...
for a taxpayer transferring property to a corporation in a section 351 transaction the stock received...
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
A shareholder's holding period for stock received under $ 351 can include the holding period of the property transferred to the corporation. True False LITTLI ..
(13) Identify which of the following statements is true. A) If stock and boot property are both received in a Sec. 351 exchange, the transferor must allocate the total basis in the contributed property between the stock and boot property based on the relative FMVs of the stock and the boot property. B) The adjusted basis of stock received in a Sec. 351 transaction is computed by deducting the deferred loss from the FMV of the stock received. C) The...
Question 2 3.03 points Save Answer Identify which of the following statements is true. A corporation must recognize a loss when transferring noncash boot property that has declined in value and its stock to a transferor as part of a Sec. 351 exchange Section 351 provides for nonrecognition of gain for the transferee corporation when it distributes appreciated and that is boot property to a shareholder The transferee corporation's holding period for assets acquired in an exchange meeting the Sec....
QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the fair market value of the property. With respect to the sale, The shareholder has a basis of S175,000 in the property. The corporation has a tax loss of S50,000. The corporation does not recognize a tax loss but reduces its E & P account $50,000. The shareholder has a constructive dividend of $50,000. None of the above QUESTION 8 Assume taxable income is the...
Doug, Elbert, and Fran form DEF Corporation by transferring the following: From Transferor Property Transferred Stock Received 10-Year Notes Doug $75,000 $75,000 $0 Elbert $25,000 $25,000 $0 Fran $25,000 $0 $25,00 Would Does the above transfer qualify Doug and Elbert for nonrecognition of gain or loss under Code Sec. 351? A. No, the note disqualifies the transfer. B. No, control was not obtained in the transfer. C. Yes, the note is not considered stock and control is obtained D. Yes,...
Discussion Question 4-11 (LO. 3) With respect to the calculation of the basis of stock received by a shareholder in a $ 351 transfer, label each of the following as being either "True" or "False" a. If a shareholder transfers a liability to the corporation along with property, the basis in the stock received is reduced by the amount of the liability transferred to the corporation. b. Section 362(e)(2) generally requires the corporation to step down the carryover basis for...
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