In a § 351 transfer to a controlled corporation, the corporation's basis for the property it receives is the shareholder's basis increased by any boot given by the corporation.

Question

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In a § 351 transfer, the corporation's basis for the property it receives is the same as the shareholder's adjusted basis in the property transferred, plus any gain recognized by the shareholder, not increased by any boot given by the corporation.

In a § 351 Transfer to a Controlled Corporation, the Corporation's