Which of the following statements regarding transfers of property or services is true? O O For a transfer of property to a corporation, no gain is recognized by the taxpayer if the A. transferred property is encumbered with liabilities in excess of the taxpayer's basis in th property. If receipt of stock is subject to a substantial risk of forfeiture, income is recognized by th B. recipient in the year the stock is received even though the substantial risk of forfeiture H lapsed. If the contributing partner receives a capital interest in the partnership upon contributi C. services, the contributor will be taxed on the transfer when the contributor actually rec profits. In order for an exchange of services to a partnership for a profit interest to qualify as a D. nontaxable event, the service partner must provide services to the partnership or for it benefit, and the services must be provided by the service partner in his capacity as a p

S1 – All dispositions of real properties classified as capital assets are subject to capital gains tax. S2 – All dispositions of shares of stocks are subject to capital gains tax. Group of answer choices a. Only S1 is true b. Only S2 is true c. Both are true d. Both are false

390. CHAPTER 4—CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que90 Issues relating to basis arise when a taxpayer is involved in a § 351 transaction. Describe the underlying rules, and the purpose they serve. 391. CHAPTER 4—CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que91 How is the transfer of liabilities in a property transaction generally treated for tax purposes? How is a transfer of liabilities generally treated in a § 351 transaction? What exceptions could arise to this usual treatment in a § 351 setting? 392. CHAPTER 4—CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que92 When forming a corporation, a transferor-shareholder may choose to receive some corporate debt along with stock. Identify some of the issues the transferor must consider when deciding whether debt should be a part of the transaction. 393. CHAPTER 4—CORPORATIONS: ORGANIZATION AND CAPITAL STRUCTURE Que93…

A covered member creates a blind trust and transfers assets into the blind trust. The covered member will not supervise or participate in the trust’s investment decisions during the term of the trust. if the covered member retains the right to amend or revoke the trust, Will the trust and the underlying assets be considered the covered member’s direct financial interests?   Yes or No