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

question 48

Multiple Choice

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

• A)If the basis of a property transferred to a corporation under §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 §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 §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.
• D)If the aggregate basis of all property transferred to a corporation under §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.

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Definitions:

Upward Communication

The flow of information from lower levels of a hierarchy to higher levels.

Downward Communication

Information flow from the higher levels of a hierarchy to the lower levels, typically used for instructions, performance feedback, and policy announcements.

Organizational Goals

The objectives or targets that an organization aims to achieve, which guide its operations and strategy.

Informal Networks

Informal networks refer to the social connections and channels of communication within an organization that are not officially designated or structured but play a crucial role in information flow and collaboration.