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:

Articular Cartilage

Smooth, white tissue that covers the ends of bones where they come together to form joints, reducing friction during movement.

Synarthrotic

Referring to a type of joint that is completely immobile or fixed, offering stability to the skeletal structure.

Pubic Symphysis

A cartilaginous joint located between the left and right pubic bones near the front of the pelvis.

Tibiofibular Joint

The connection point between the tibia and fibula bones of the lower leg, allowing for slight movement and providing stability to the ankle.