A corporate formation can take place tax-free when an individual transfers the assets of a business to
Question:
A corporate formation can take place tax-free when an individual transfers the assets of a business to a corporation and no boot property is distributed by the corporation to the shareholder. A corporate liquidation, on the other hand, is taxable to both the liquidating corporation and its shareholders. Why does the tax law differentiate between the two transactions?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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For the following reasons the cost of a corporate formation transaction usually is quite low because ...View the full answer
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Related Book For 
Federal Taxation 2017 Individuals
ISBN: 9780134420868
30th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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