The basis of property received by a corporation is equal to the basis in the hands of the shareholder plus any gain recognized by the shareholder.

Question

Quizplus · Accepted Answer

This statement is true according to the rules of tax law. The basis of property received by a corporation is the same as the shareholder's adjusted basis in the property, plus any gain recognized by the shareholder as a result of the transfer. This is known as the carryover basis rule.

The Basis of Property Received by a Corporation Is Equal