Owners have includible income when appreciated property is contributed to a business that is
A)A proprietorship
B)AC corporation in exchange for 90 percent of its stock
C)An S corporation in exchange for 60 percent of its stock
D)A partnership in exchange for a 40 percent capital interest

Question

Quizplus · Accepted Answer

When appreciated property is contributed to an S corporation in exchange for less than 80% of its stock, the owner must recognize gain on the appreciation.

Owners Have Includible Income When Appreciated Property Is Contributed to a Business