In a transaction involving the transfer of corporate and partnership interests in which the special valuation rules under IRC Chapter 14 apply, which one of the following statements is CORRECT?     A) The interest

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 18MCQ
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In a transaction involving the transfer of corporate and partnership interests in which the special valuation rules under IRC Chapter 14 apply, which one of the following statements is CORRECT?

 
 
A)
The interest retained by the transferor must be valued at zero if this retained interest is not a qualified interest.
 
 
B)
The interest given to the transferee/recipient must be valued at zero if the transferee is not given a qualified interest.
 
 
C)
The interest retained by the transferor must be valued at zero if this retained interest is a qualified interest.
 
 
D)
The interest given to the transferee must be valued at zero if the transferee is given a qualified interest.
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