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If a Shareholder Transfers Liabilities to a Corporation in a Sec.351

question 126

True/False

If a shareholder transfers liabilities to a corporation in a Sec.351 transfer,there is no effect on the shareholder's stock basis due to the corporation's assumption of liabilities.


Definitions:

Obsessive-compulsive Disorder

A mental health disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.

Multiple-personality Disorder

Now referred to as Dissociative Identity Disorder, it is a psychological condition where two or more distinct and separate identities or personality states are present in, and alternately take control of, an individual.

Psychosis

A severe mental disorder in which thought and emotions are so impaired that contact is lost with external reality.

Diagnostic Label

A term or phrase used in healthcare to categorize and identify a specific condition or disorder.

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