The transferor's holding period for any boot property received in a Sec. 351 stock exchange
A)includes the holding period for the boot transferred.
B)begins on the day after the exchange.
C)begins on the day of the exchange.
D)is the same as the holding period of the stock received in the exchange.

Question

Quizplus · Accepted Answer

The holding period for any boot property received in a Sec. 351 stock exchange begins on the day after the exchange. This is because boot is considered to be newly acquired property in the transaction, and its holding period does not relate to the holding period of the property exchanged.

The Transferor's Holding Period for Any Boot Property Received in a Sec