True/False
One month after Sally incorporates her sole proprietorship, she gives 25% of the stock to her children. Section 351 cannot apply to Sally because she has not satisfied the 80% control requirement.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q88: George (an 80% shareholder) has made loans
Q89: Wade and Paul form Swan Corporation with
Q90: Amy owns 20% of the stock of
Q91: Art, an unmarried individual, transfers property (basis
Q92: Dick, a cash basis taxpayer, incorporates
Q94: Joyce, a single taxpayer, transfers property (basis
Q95: To help avoid the thin capitalization problem,
Q96: The receipt of nonqualified preferred stock in
Q97: A shareholder's holding period for stock received
Q98: When incorporating her sole proprietorship, Samantha transfers