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

question 83

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 fair market value 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 tax basis of the property.

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Definitions:

Obedience

The act of following orders or directions from a person in authority, often without question or resistance.

Secure Attachment

A type of emotional bond where an individual feels confident and believes their attachment figures (often parents or caregivers) will be available to meet their needs.

Childhood Experience

Events, interactions, and situations a person goes through during their early years, which can significantly influence their development and personality.

Social Development

The process by which individuals acquire the skills, behaviors, and attitudes necessary to function effectively in society.