Even if boot is generated under § 357(b) (i.e., the liability is not supported by a bona fide business purpose), the transferor shareholder may not have to recognize gain.

Question

Quizplus · Accepted Answer

If boot is generated under § 357(b) and the liability is not supported by a bona fide business purpose, the transferor shareholder may still avoid recognizing gain under certain circumstances, such as if the liability is assumed by the corporation as part of the transaction.

Even If Boot Is Generated Under § 357(b) (I