When Depreciable Property Is Transferred to a Controlled Corporation Under

question 60

True/False

When depreciable property is transferred to a controlled corporation under § 351, any recapture potential disappears and does not carry over to the corporation.

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Definitions:

Future Wages

Earnings that an individual is expected to receive from their employment in the upcoming period.

Statutes

Written laws passed by a legislative body at the national or state level.

Gratuitous Assignment

The act of transferring rights or interests from one party to another without requiring any consideration or payment in return.

Revocable

Capable of being revoked, withdrawn, or cancelled, often referring to trusts, licenses, or permissions.