In General, the Basis of Property to a Corporation in a Transfer

question 42

True/False

In general, the basis of property to a corporation in a transfer that qualifies as a nontaxable exchange under § 351 is the basis in the hands of the transferor shareholder decreased by the amount of any gain recognized on the transfer.

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Definitions:

Parcel

A parcel refers to a package or piece of land, especially one that is part of a larger area or to be used for a specific purpose.

Vendor

An individual or company offering goods or services for sale.

Encroachments

Unauthorized intrusion or extension of a building, structure, or other improvement onto another's property.

Easements

A legal right to use another person's land for a specific limited purpose, such as right of way or utility access, without owning it.