Identify which of the following statements is true.
A)Section 351 applies exclusively to the formation of a new corporation.
B)Section 351 applies to property transfers in exchange for stock.
C)Section 351 only applies to individual transferors.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Section 351 of the Internal Revenue Code applies to property transfers in exchange for stock, regardless of whether it is the formation of a new corporation or transfer by an individual or group. Therefore, statements A and C are both false.

Identify Which of the Following Statements Is True