Maria Defers $100 of Gain Realized in a Section 351

question 108

True/False

Maria defers $100 of gain realized in a section 351 transaction.The stock she receives in the exchange has a fair market value of $500.Maria's tax basis in the stock will be $400.

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Definitions:

Liberty Interest

Refers to the fundamental rights and freedoms protected by the Constitution that cannot be infringed upon without due process.

Constitution

A fundamental set of principles and precedents by which a state or other organization is governed, often codified as a written document that lays out the structure and powers of the government.

Roe V. Wade

A significant 1973 Supreme Court decision that recognized a woman's right to choose an abortion under certain conditions, based on privacy rights.

Abortions

The medical termination of a pregnancy before the fetus is capable of independent life.