Identify which of the following statements is true.
A)A transferor's gain or loss that goes unrecognized when Sec. 351 applies is permanently exempt from taxation.
B)If a taxpayer transfers property and services as part of a transaction meeting the Sec. 351 requirements, all of the stock received is counted in determining whether the property transferors have acquired control.
C)If a taxpayer transfers property and services as part of a transaction meeting the Sec. 351 requirements, the nonrecognition of gain or loss will apply to the services.
D)All of the above are false.

Question

Quizplus · Accepted Answer

When property and services are transferred in a Sec. 351 transaction, only the stock received for the property is counted for control purposes, not the stock received for services.

Identify Which of the Following Statements Is True