Question

4.) The three questions in the Check the Box Regulations include:

A. Is the entity a separate entity for state law purposes?

B. If the entity is a separate entity, it is a partnership?

C. If the entity is a true corporation, how do you want it classified?

D. If the entity is a separate entity, is it a corporation or a trust?

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

A. Individual Transferors only

B. Transferee Corporations only

C. Transferee Partnerships

D. Transferors and Transferee Corporations

7.) The following is true for basis in Section 351 transfers:

A. Carryover basis applies to the corporation and the transferor.

B. Substituted basis for assets received by the transferor.

C. Step up in basis for the corporation.

D. Transferor carryover basis is increased by liabilities assumed.

8.) The following is true about Boot in a Section 351 transfer:

A. Boot is only cash received by the corporation.

B. Boot is only cash received by the transferor.

C. Boot includes liabilities assumed by the transferor.

D. Boot includes liabilities assumed in excess of basis of the assets transferred.

Answer 1

4.         The three questions in the Check the Box Regulations include:

       B. If the entity is a separate entity, it is a partnership?

       C. If the entity is a true corporation, how do you want it classified?

       D. If the entity is a separate entity, is it a corporation or a trust?

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

            D. Transferors and transferee corporations.

7.            The following is true for basis in Section 351 transfers:

            A. Carryover basis applies to the corporation and the transferor.

8.         The following is true about Boot in a Section 351 transfer:

            D. Boot includes liabilities assumed in excess of basis of the assets transferred.