In 20Y1, Ms

question 20

Multiple Choice

In 20Y1, Ms. Graves transferred appreciated property to KL Partnership in exchange for an ownership interest in the partnership. She deliberately waited until 20Y3 before taking cash out of the partnership. Ms. Graves may have been trying to prevent the IRS from applying the:

• A) Business purpose doctrine
• B) Economic substance doctrine
• C) Substance over form doctrine
• D) Step transaction doctrine

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Definitions:

Carpals

The bones that form the wrist, connecting the forearm to the hand.

Metacarpals

The five long bones in the hand located between the wrist and the fingers.

Triceps Brachii

A large muscle on the back of the upper arm responsible for the extension of the elbow joint, consisting of three heads (long, lateral, and medial).

Biceps Brachii

A large muscle on the front side of the upper arm, responsible for elbow flexion and forearm rotation.