Control as It Relates to a Section 351 Transaction Is

question 35

True/False

Control as it relates to a section 351 transaction is strictly defined to be 80 percent or more of the voting power of the stock of the corporation to which property is transferred.
Control also requires ownership of 80 percent or more of each class of nonvoting stock.

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Definitions:

Capsule

A protective outer covering of some organisms or the shell of a medication designed for swallowing.

Nuclear Pores

Large protein complexes that cross the nuclear envelope, serving as gateways that regulate the transport of molecules between the nucleus and cytoplasm.

Nucleoplasm

Semifluid medium of the nucleus, containing chromatin.

Cytoplasm

The jelly-like substance within a cell, excluding the nucleus, that contains organelles, enzymes, and the cytoskeleton, providing a site for most cellular processes.