Why Would a Transferor Want to Avoid the Nonrecognition of Gain

question 43

Essay

Why would a transferor want to avoid the nonrecognition of gain under Sec. 351? How can the nonrecognition provision of Sec. 351 be avoided?

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Definitions:

Merton

Refers to Robert K. Merton, an influential American sociologist known for his theories on social structure, anomie, and the sociology of science.

Anomie

A condition in society characterized by a breakdown or absence of social norms and values, often leading to a state of normlessness.

Normlessness

A state or condition where social norms are unclear, weak, or not widely followed, often leading to social disorientation.

Social Breakdown

Refers to the deterioration of the social fabric and structures, leading to a decline in societal norms and values, often resulting in chaos or disorder.