In a nontaxable reorganization, the acquiring corporation has a holding period for the acquired assets that begins on the day after the transaction date.

Question

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In a nontaxable reorganization, the acquiring corporation's holding period for the acquired assets includes the period during which the assets were held by the transferor, effectively backdating the start of the holding period to before the transaction date.

In a Nontaxable Reorganization, the Acquiring Corporation Has a Holding