Which of the following is not a required characteristic of a qualifying Section 351 transaction?
A)If more than 20 percent of the stock is transferred for services, property must also be transferred by the service provider.
B)Gain may be recognized if the transferor receives something other than stock.
C)The transferors must control the corporation after the transfer.
D)Control requires shareholders owning only 80 percent of the voting stock if nonvoting stock is outstanding.

Question

Quizplus · Accepted Answer

Control requires shareholders owning at least 80 percent of both voting and nonvoting stock, not just 80 percent of the voting stock.

Which of the Following Is Not a Required Characteristic of a Qualifying