Which of the Following Statements Best Describes the "Built-In Loss

question 13

Multiple Choice

Which of the following statements best describes the "built-in loss" rules that apply to property transferred to a corporation under section 351?

• A) If the basis of a property transferred to a corporation under section 351 exceeds its fair market value, the corporation will always take a tax basis in the property equal to the property's fair market value.
• B) If the basis of a property transferred to a corporation under section 351 exceeds its fair market value, the corporation will always take a tax basis in the property equal to the property's tax basis in the hands of the shareholder.
• C) If the aggregate basis of all property transferred to a corporation under section 351 exceeds its aggregate fair market value, the aggregate tax basis of the property in the hands of the corporation cannot exceed the aggregate tax basis of the property.
• D) If the aggregate basis of all property transferred to a corporation under section 351 exceeds its aggregate fair market value, the aggregate tax basis of the property in the hands of the corporation cannot exceed the aggregate fair market value of the property.

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Definitions:

Mild Anesthetic

A substance that induces a reversible loss of sensation or pain, used in minor surgical or medical procedures.

Altered States

Conditions of consciousness that significantly differ from one's normal waking state, which can be achieved through meditation, drugs, hypnosis, or other methods.

Effective Treatment

A therapeutic intervention or approach that has been scientifically tested and proven to work in improving or curing a condition or disease.

Imaginative Suggestibility

A trait that determines how receptive a person is to suggestions, leading to altered perceptions or behaviors based on imagination.