1Realization
Gain or loss that results from an exchange of property rights in a transaction.
2Persons
An individual, trust, estate, partnership, association, company, or corporation.
3Boot
Property given or received in an otherwise nontaxable transaction such as a like-kind exchange that may trigger gain to a party to the transaction. The term ... derives from a trading expression describing additional property a party to an exchange might throw in "to ..." to equalize the exchange.
4Substituted Basis
The transfer of the tax basis of stock or other property given up in an exchange to stock or other property received in return.
5Carryover Basis
The basis of an asset the transferee takes in property received in a nontaxable exchange. The basis of the asset ...s ... from the transferor to the transferee
6Contribution to Capital
A shareholder's or other person's ... of cash or other property to a corporation without receipt of an additional equity interest in the corporation.
7Challenging Concepts to study
(everything below this)
8Calculate a shareholder's stock basis in a section 351 transaction.
9Describe the treatment of liabilities assumed in Section 351 tax-deferred transactions.
10Recall the exception to the general rule for the assumption of liabilities in excess of basis.
11Recall the disadvantage of transferring appreciated property to a closely held corporation.
12Compute the basis of depreciable assets transferred to a corporation in a Section 351 transaction.