Identify which of the following statements is true.
A)To qualify for Sec. 351 treatment, control is defined as more than 50% ownership of the voting stock, and more than 50% of all other classes of stock.
B)If a shareholder receives stock with an FMV greater than the FMV of the property exchanged in a Sec. 351 transaction, the excess FMV may be considered a gift from one shareholder to another shareholder.
C)Only transfers to newly created corporations qualify for Sec. 351 treatment.
D)All of the above are false.

Question

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The Answer of Identify which of the following statements is true.
A)To qualify for Sec. 351 treatment, control is defined as more than 50% ownership of the voting stock, and more than 50% of all other classes of stock.
B)If a shareholder receives stock with an FMV greater than the FMV of the property exchanged in a Sec. 351 transaction, the excess FMV may be considered a gift from one shareholder to another shareholder.
C)Only transfers to newly created corporations qualify for Sec. 351 treatment.
D)All of the above are false.

Identify Which of the Following Statements Is True