Identify which of the following statements is true.
A)The exchange of stock for services rendered is not a taxable transaction.
B)The repeal of Sec. 351 would result in more existing businesses being incorporated.
C)Section 351 was enacted to allow taxpayers to incorporate without incurring adverse tax consequences.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Section 351 was indeed enacted to allow taxpayers to incorporate without incurring adverse tax consequences. Option A is false because exchanging stock for services rendered is generally taxable. Option B is false because the repeal of Sec. 351 would actually discourage incorporation.

Identify Which of the Following Statements Is True