As a General Rule, the Transfer of Property by a Sole

question 31

True/False

As a general rule, the transfer of property by a sole shareholder to a corporation in exchange solely for stock does not result in a taxable transaction.

---

Definitions:

S Corporation

A special designation that allows corporations to pass income, losses, deductions, and credits through to their shareholders for federal tax purposes.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Limited Liability Companies

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Wyoming

A state in the western United States known for its wide-open spaces, mountains, and natural beauty, as well as being the least populous state.