Which of the Following Is Not a Required Characteristic of a Qualifying

question 24

Multiple Choice

Which of the following is not a required characteristic of a qualifying Section 351 transaction?

• A)If more than 20 percent of the stock is transferred for services, property must also be transferred by the service provider.
• B)Gain may be recognized if the transferor receives something other than stock.
• C)The transferors must control the corporation after the transfer.
• D)Control requires shareholders owning only 80 percent of the voting stock if nonvoting stock is outstanding.

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Definitions:

Industrywide Portal

A web-based platform that serves as a gateway to resources and information relevant to a specific industry, facilitating collaboration and knowledge sharing.

Affiliated Interests

Affiliated Interests refer to businesses, organizations, or entities that are related or connected to each other, typically through ownership or partnership agreements.

Affinity Portals

Websites that offer internet users a range of content, tools, and links tailored to their interests, often related to a specific industry or niche.

Affiliated Interests

Interests that are related or connected to each other through common ownership, management, or some form of partnership or alliance.