Which of the Following Statements Best Describes the "Built-In Loss

question 83

Multiple Choice

Which of the following statements best describes the "built-in loss" rules that apply to property transferred to a corporation under section 351?

• A) If the basis of a property transferred to a corporation under section 351 exceeds its fair market value, the corporation will always take a tax basis in the property equal to the property's fair market value.
• B) If the basis of a property transferred to a corporation under section 351 exceeds its fair market value, the corporation will always take a tax basis in the property equal to the property's tax basis in the hands of the shareholder.
• C) If the aggregate basis of all property transferred to a corporation under section 351 exceeds its aggregate fair market value, the aggregate tax basis of the property in the hands of the corporation cannot exceed the aggregate fair market value of the property.
• D) If the aggregate basis of all property transferred to a corporation under section 351 exceeds its aggregate fair market value, the aggregate tax basis of the property in the hands of the corporation cannot exceed the aggregate tax basis of the property.

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Definitions:

Hypnotic Susceptibility

The degree to which a person is able to enter into a hypnotic state, encompassing factors such as openness and responsiveness.

Inherited

Attributes, traits, or conditions that are passed from parents to their offspring through genes.

Circadian Rhythms

Natural physical, mental, and behavioral changes that follow a 24-hour cycle, influencing sleep, wakefulness, and other bodily functions.

Alcohol Use

The consumption of beverages containing ethanol, which can range from moderate drinking to alcohol abuse and dependence.