A taxpayer must receive voting common stock to be eligible for deferral in a section 351 exchange.
The stock can be voting or nonvoting, common or preferred.

Name: A taxpayer must receive voting common stock to be eligible for deferral in a section 351 exchange. The stock can be voting or nonvoting, common or preferred.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

The statement is false. A taxpayer can receive either voting or nonvoting stock, common or preferred, in a section 351 exchange and still be eligible for deferral.

A Taxpayer Must Receive Voting Common Stock to Be Eligible