If an individual contributes an appreciated personal use asset to a C corporation in a transaction which qualifies for nonrecognition treatment under § 351, the corporation's basis in the asset is the same as was the shareholder's adjusted basis.

Question

Quizplus · Accepted Answer

According to § 362(a)(1), the corporation's basis in the asset is the same as was the shareholder's adjusted basis when a shareholder contributes an appreciated personal use asset to a C corporation in a transaction that qualifies for nonrecognition treatment under § 351.

If an Individual Contributes an Appreciated Personal Use Asset to a C