Which of the following statements is true concerning the disposition of an installment note?
A) Deferred gain is not recognized by the transferor if the installment note is a non-taxable transfer to a controlled corporation.
B) Deferred gain must only be recognized if the installment note was transferred as a gift to a related party.
C) Transfer of an installment obligation to another party will not trigger immediate recognition of deferred gain.
D) Deferred gain must be recognized if the note is transferred to the owner's estate at his death.
E) None of the above.

Question

Quizplus · Accepted Answer

In a non-taxable transfer to a controlled corporation, the deferred gain is not recognized by the transferor, as the transaction is not considered a taxable event.

Which of the Following Statements Is True Concerning the Disposition