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 only owning 80 percent of the value of the voting stock
E)All are characteristics.

Question

Quizplus · Accepted Answer

Control requires owning at least 80 percent of both the voting stock and the total number of shares of all other classes of stock, not just the value of the voting stock.

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