In General, the Basis of Property to a Corporation in a Transfer

question 42

True/False

In general, the basis of property to a corporation in a transfer that qualifies as a nontaxable exchange under § 351 is the basis in the hands of the transferor shareholder decreased by the amount of any gain recognized on the transfer.

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Definitions:

Amoeboids

A group of organisms, mostly unicellular, that move and ingest food by extending pseudopods.

Fungal Cell Walls

Rigid outer layers found in fungal cells, composed primarily of chitin, which provide structure and protection.

Chitin

A long-chain polymer of N-acetylglucosamine, a derivative of glucose, which forms a major component in the exoskeletons of arthropods and the cell walls of fungi.

Saprotrophy

The process or mode of nutrition that involves organisms feeding on decaying organic matter, breaking it down into simpler substances.