If a taxpayer contributes an appreciated asset to a business entity and the realized gain is not recognized,there is a carryover basis for the taxpayer's ownership interest and a carryover basis to the entity for the asset.

Question

Quizplus · Accepted Answer

This is true. When a taxpayer contributes an appreciated asset to a business entity, the realized gain is not recognized and there is a carryover basis for the taxpayer's ownership interest and a carryover basis to the entity for the asset.

If a Taxpayer Contributes an Appreciated Asset to a Business