1 The following is true for basis in Section 351 transfers: Step up in basis for

ID: 2461676 • Letter: 1

Question

The following is true for basis in Section 351 transfers:

Step up in basis for the corporation.

Substituted basis for assets received by the transferor.

Carryover basis applies to the corporations and the transferor.

Transferor carryover basis is increased by liabilities assumed.

For purposes of determining corporate characteristics, Limited Liability means:

owners' liability is limited to their investment.

Limited liability of the management.

limited personal guarantees by the owners.

limited partnerships are the only entities with this characteristic.

Section 351, properly complied with, confers non-taxable treatment to:

individual transfers only

transferee corporations only

transferee partnerships

transferors and transferee corporations

2.08 points

Question 12

Which of the following corporate characteristics is not considered when determining whether an entity may be treated as a corporation?

common stock

centralized management

continuity of life

limited liability

Step up in basis for the corporation.

Substituted basis for assets received by the transferor.

Carryover basis applies to the corporations and the transferor.

Transferor carryover basis is increased by liabilities assumed.

2)Option A. Their liabilitry is limited to the extent of their shares in company
Q 12)Option A. Rest of all are features of corporation

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