Transferor contributed $180,000 of cash to his newly formed corporation in exchange for stock.As part of the same plan, Manager received $20,000 of stock for services to be performed during the first year of business.Manager's stock qualifies as § 1244 stock.

Question

Quizplus · Accepted Answer

The fact that Manager's stock qualifies as § 1244 stock is irrelevant to the question of whether the transferor's cash contribution qualifies for any tax benefits.

Transferor Contributed $180,000 of Cash to His Newly Formed Corporation