Solution:
True, As long as the 80% control requirement is met, there is no limit on the use of § 351.
Hence first option is correct.
The use of $ 351 is not limited to the initial formation of a corporation, and...
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 ..
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
In order to retain the services of Eve, a key employee in Ted's sole proprietorship. Ted contracts with Eve to make her20% owner. Ted incorporates the business, receiving in return 100% of the stock. Three days later, Ted transfers 309 of the stockato Eve. Under these circumstances, $ 351 will apply to the incorporation of Ted's business. True False
In order to retain the services of Emily, a key employee in Fred’s sole proprietorship, Fred contracts Emily to make her a 30% owner. Fred incorporates the business receiving in return 100% of the stock. Three days later, Fred transfers 30% of the stock to Emily. Under these circumstances, § 351 will not apply to the incorporation of Fred’s business. True/false?
Question 8 3.03 points Save Answer West Corporation purchases 50 shares (less than 1%) of Perch Corporation common stock on April 3. The ex-dividend date is April 4. West Corporation pays $60,000 for the stock and receives a dividend of $5,000 on the Perch stock. On May 1, West Corporation sells the Perch stock for $45,000. West's taxable income before the dividends-received deduction is $4,000. West's dividends-received deduction is $0. $3,500 $3,200. $2,800 Identify which of the following statements is...
The formation of a corporation is a way to circumvent personal liability True or False 1:31 True 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...
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...