17.5k views
4 votes
When a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange qualifying under § 351, the transferor shareholder’s basis in stock received in the transferee corporation is increased by the amount of the mortgage on the property.a.trueb.false

User DominicM
by
8.6k points

1 Answer

2 votes

Answer:

a. True

Step-by-step explanation:

Under the U.S corporate tax laws, when a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange qualifying under section, § 351, the transferor shareholder’s basis in stock received in the transferee corporation is increased by the amount of the mortgage on the property.

User Ajay Kharade
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.