Homework question | Accounting homework help





3A  Requirements of § 351 Nonrecognition

GENERAL COMMENTS: This is an introductory lesson intended to teach the basic principles before diving into the mechanics of § 351 transactions. Therefore, many of the same issues are covered in Lesson 3B. Note that while the fiscal year, the accounting method, and other tax decisions that must be made upon incorporation are not discussed here, you may cover these topics in the lesson.

(1)  The transfer is a sale or disposition under § 1001. A will realize $100 in amount and $50 in gain and will recognize the gain “except as otherwise provided in this subtitle,” because the general rule of the Code is that transfers for value are subject to tax. X will take a § 1012 cost basis so that the $50 gain inherent in the land in A’s hands cannot again be taxed. If X exchanges its stock, that stock is property the fair market value of which normally is realized by the recipient under § 1001(b), and X still gets a cost basis of $100 in the land. Section 351 “otherwise provides” if various conditions to be studied herein are met, with the result that A does not recognize the realized gain and X takes a carryover basis in the land. Conceptually, this rule seems to have been adopted in part to facilitate the incorporation of assets without recognition of gain (thus, normally benefiting the transferor) or loss (thus, normally benefiting the government), and in recognition of the feeling that somehow A has not “cashed in” because A’s interest in the land continues in the form of A’s stock. Compare § 721. B&E ¶ 3.01.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
At Custom Writing, we believe in exemplary services that are fully geared toward customer satisfaction. That is why we don’t shy away from giving you the following guarantees;

Money-back guarantee

Trusting us with your work is the best decision you have made, our pleasure lies in seeing you satisfied at 100%. If in the rear chance it happens that you are not satisfied, then know that we will equally not be satisfied. But worry not, our 30 days- Money back guarantee is all you need and that is what we promise you..

Read more

Zero-plagiarism guarantee

We utilize profoundly equipped and gifted writers who produce unique papers liberated from any form of plagiarism. To guarantee this, we run all papers finished by our scholars through a Plagiarism checker to ensure uniqueness and originality. In any case, on the off chance that you have vulnerabilities about the originality or falsification of any paper we have finished and conveyed to you, please get in touch with us straight away. We will quickly investigate, and if the paper is seen as counterfeited, we will take suitable actions including but not limited to, revising the paper for free and in extreme cases we will activate the money back guarantee.

Read more

Free-revision policy

We have an obligation deliver great and specially composed assignments. Our revision strategy endeavors to ensure total client satisfaction, comfort, and a genuine feelings of serenity. We make minor updates and corrections to the underlying request as part of our continuous assistance. However, revisions should just incorporate changes and alterations that were not effectively met, in the underlying request and that are inside the rules as per the current request structure..

Read more

Privacy policy

Our client's Data is an Integral part of our business but clearly, we are not in the business of offering our clients' very own data to others. We realize that you care how your online data is utilized and shared, we equally value your trust that we will do so cautiously and sensibly. We Promise to ensure the security of your own data during transmission by utilizing encryption conventions and programming. Likewise assist us with securing your information by not sharing your passwords and usernames.

Read more

Fair-cooperation guarantee

In submitting a request with us, you consent to the services we give. We will strive to take the necessary steps to convey a far reaching paper according to your prerequisites. Equally we depend on your cooperation to guarantee that we convey on this order.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages