Question

In order to qualify for deferral under Section 351, which of the following requirements must be met?

a) Transfer of property
b) Transfer of liabilities
c) Solely exchange of stocks
d) Continuity of interest

Answer 1

To qualify for deferral under Section 351, the requirements include transfer of property, transfer of liabilities, solely exchange of stocks, and continuity of interest. All of the options are correct.

Step-by-step explanation:

In order to qualify for deferral under Section 351, there are several requirements that must be met.

First, there must be a transfer of property from one party to another.

Second, there must be a transfer of liabilities, where the transferee assumes the liabilities of the transferor.

Third, the exchange must be solely in the form of stocks.

Lastly, there must be continuity of interest, meaning that the shareholders of the transferor must have a significant interest in the stock of the transferee.

Hence, Options a, b, c and d all are correct.