When incorporating her sole proprietorship,Samantha transfers all of its assets and liabilities. Included in the $30,000 of liabilities assumed by the corporation is $500 that relates to a personal expenditure (not business related). Under these circumstances,the entire $30,000 will be treated as boot.

Question

Quizplus · Accepted Answer

One dollar of tainted liabilities causes all liabilities to be treated as boot under § 357(b).

When Incorporating Her Sole Proprietorship,Samantha Transfers All of Its Assets