Since services are not considered property under § 351, a taxpayer must report as income the fair market value of stock received for such services.

Question

Quizplus · Accepted Answer

This statement is true. Under § 351 of the Internal Revenue Code, services are not considered property and therefore cannot be excluded from taxable income in a transaction where stock is received in exchange for services. The fair market value of the stock must be reported as income by the taxpayer receiving the stock.

Since Services Are Not Considered Property Under § 351, a Taxpayer