The Assignment of Income Doctrine Does Not Apply If the Transferor

question 3

True/False

The assignment of income doctrine does not apply if the transferor in a Sec. 351 exchange in which no gain is otherwise recognized transfers substantially all the assets and liabilities of the transferor's trade or business to the controlled corporation.

---

Definitions:

Acquaintances

People known by someone, but not considered close friends; typically relationships are of a less intimate nature.

Grapevine

An informal communication network within an organization.

Explicit Words

Words that are expressed clearly and in detail, leaving no room for confusion or interpretation.

High-context Cultures

Societies or groups where communication relies heavily on the contextual elements like body language, implicit messages, and the social hierarchy, rather than solely on explicit words.