What is the control requirement of § 351? Describe the effect of the following in satisfying this requirement: A shareholder renders only services to the corporation for stock. A shareholder renders services and transfers property to the corporation for stock. A shareholder has only momentary control after the transfer. A long period of time elapses between the transfers of property by different shareholders.
What is the control requirement of § 351? Describe the effect of the following in satisfying this requirement: A shareholder renders only services to the corporation for stock. A shareholder renders services and transfers property to the corporation for stock. A shareholder has only momentary control after the transfer. A long period of time elapses between the transfers of property by different shareholders.
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 11DQ
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What is the control requirement of § 351? Describe the effect of the following in satisfying this requirement:
- A shareholder renders only services to the corporation for stock.
- A shareholder renders services and transfers property to the corporation for stock.
- A shareholder has only momentary control after the transfer.
- A long period of time elapses between the transfers of property by different shareholders.
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