If an Individual Contributes an Appreciated Personal Use Asset to a C

question 85

True/False

If an individual contributes an appreciated personal use asset to a C corporation in a transaction which qualifies for nonrecognition treatment under § 351, the corporation's basis in the asset is the same as was the shareholder's adjusted basis.

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Definitions:

Parens Patriae

A legal principle that allows the state to assume a parental role and to act in the best interest of a child or other individual who is unable to protect themselves.

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory, often used to maintain the safety, health, morals, and general welfare of its inhabitants.

State Responsibility

The legal and political concept that states are accountable for upholding international laws, norms, and agreements.

Parens Patriae

A legal principle that allows the state to act as the guardian for those who are unable to care for themselves, including minors and the mentally ill.