To Meet the Control Test Under Section 351, a Taxpayer

question 51

True/False

To meet the control test under section 351, a taxpayer transferring property to a corporation must by himself own 80 percent or more of the corporation's voting stock and 80 percent of each class of nonvoting stock after the transfer even if there are other transferors of property.

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Definitions:

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as the discounting cue is forgotten over time.

Persuasive Message

A communication intended to influence the attitudes, beliefs, or behaviors of others through various means, including logic and emotion.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Foot-In-The-Door Technique

A compliance strategy that involves getting a person to agree to a large request by first setting them up to agree to a modest request.