Question

In general, the basis of property to a corporation in a transfer that qualifies as a nontaxable exchange under § 351 is the basis in the hands of the transferor shareholder decreased by the amount of any gain recognized on the transfer.

True / False.

Answer 1

False

the basis of property to a corporation in a transfer that qualifies as a nontaxable exchange under § 351 is not the basis in the hands of the transferor shareholder decreased by the amount of any gain recognized on the transfer.