ADVANCED CORPORATE TAXATION
EXAM QUESTIONS WITH COMPLETE
ANSWERS
Code Section 362 - Answer-- When a property is transferred into a corporation with a
built-in loss, the corporation takes on the FMV of the property as the new basis of the
transferred property
- When a property is transferred into a corporation with a built-in loss, the holding period
in the property is NEW
Code Section 1001 - Answer-- The gain from the sale or other disposition of property
shall be the excess of the amount realized over the adjusted basis
- The loss from the sale shall be the the excess of the adjusted basis over the amount
realized
Code Section 351 - Answer-- No gain or loss shall be recognized if property transferred
to a corporation by one or more persons solely in exchange for stock and immediately
thereafter the exchange such person or persons are in control (more than 80% of voting
power and more than 80% of all other classes of stock)
Code Section 358 - Answer-- In the case that section 351 applies the basis of the
property permitted to be received under such section without the recognition of gain or
loss shall be the same as that of the property exchange
1) minus the FMV of property other than stock received
2) minus money received
3) minus loss recognized
4) plus dividend received
5) plus gain recognized
IRS Rev. Proc. 77-37 - Answer-- If a person transfers property of at least 10% of the
value of the services provided, they are considered transferors of property and Sec 351
will then apply to their transaction
What is a stock redemption? - Answer-When a corporation buys back its own stock
What is the corporate income tax rate? - Answer-21%
How many years forward and how many year back can you carry a NOL? - Answer-- 0
years back
- Infinite years forward
What is the DRD and who is entitled to receive it? - Answer-- Some corporations own
stock in other corporations.
EXAM QUESTIONS WITH COMPLETE
ANSWERS
Code Section 362 - Answer-- When a property is transferred into a corporation with a
built-in loss, the corporation takes on the FMV of the property as the new basis of the
transferred property
- When a property is transferred into a corporation with a built-in loss, the holding period
in the property is NEW
Code Section 1001 - Answer-- The gain from the sale or other disposition of property
shall be the excess of the amount realized over the adjusted basis
- The loss from the sale shall be the the excess of the adjusted basis over the amount
realized
Code Section 351 - Answer-- No gain or loss shall be recognized if property transferred
to a corporation by one or more persons solely in exchange for stock and immediately
thereafter the exchange such person or persons are in control (more than 80% of voting
power and more than 80% of all other classes of stock)
Code Section 358 - Answer-- In the case that section 351 applies the basis of the
property permitted to be received under such section without the recognition of gain or
loss shall be the same as that of the property exchange
1) minus the FMV of property other than stock received
2) minus money received
3) minus loss recognized
4) plus dividend received
5) plus gain recognized
IRS Rev. Proc. 77-37 - Answer-- If a person transfers property of at least 10% of the
value of the services provided, they are considered transferors of property and Sec 351
will then apply to their transaction
What is a stock redemption? - Answer-When a corporation buys back its own stock
What is the corporate income tax rate? - Answer-21%
How many years forward and how many year back can you carry a NOL? - Answer-- 0
years back
- Infinite years forward
What is the DRD and who is entitled to receive it? - Answer-- Some corporations own
stock in other corporations.
