Tl. Shareholders must keep track of their own stock basis. Corporations must kee

Question

Tl. Shareholders must keep track of their own stock basis. Corporations must keep track of the stockholders' basis 13. Section 351 is mandatory if the requirements are met. T14. "Boot" received in a corporate formation is always taxable. T 1S. Assumption of a liability by the forming corporation is considered to be "boot" to the shareholder. 16. Obtaining corporate stock for services is tax free. 17. C Corporations are flow-through entities. F I8. "Tax free" transactions normally imply carryover basis Corporate reorganizations and acquisitions can be structured in many ways 19.

Explanation / Answer

Ans 11 true The stockholder of the stock needs to keep tract on their stock ans 12 False It’s the duty of stockholder to keeo a track of the stock basis ans 13 True It is mandatory not elective ans 14 TRUE ans 15 FALSE It is not a boot according to IRC sec 357. The basis of stock received is reduced by trhe liabilities assumed by corporation ans 16 True ans17 FALSE ans 18 FALSE ans 19 True

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