John Williams
January 16,2014
Chapter 4 problems 2,3,4,5,15,18,and 26
2. Property is transferred to the corporation only in exchange for stock in the transferee corporation. Immediately after the exchange, the transferor-shareholders in aggregate control the transferee corporation by owning at least 80% of its stock And If a transferor receives money or property (other than stock in the transferee corporation), the transferor recognizes a gain (but no loss) equal to the lesser of the boot received or the realized gain. In addition, a corporation that transfers appreciated property (other than its own stock or debt obligations) to the transferor-shareholders also recognizes a gain on the exchange.
3. provide tax relief when a person transfers property to a corporation in exchange for stock in that corporation and has no proceeds from the sale of the existing property with which to pay the tax on any realized gain.

4. taxpayers participating in a like-kind exchange receive cash or other property in addition to the like-kind property. This non-like-kind property is referred to as a “boot, when that occurs, the taxpayer has not received solely like-kind property. Fortunately, a “ceiling rule” in section 1031 takes care of this problem by providing that gain or loss is recognized, but only to the extent of the amount of boot received.

5. No gain willl be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control of the corporation

18. If you transfer property (or money and property) to a corporation in exchange for stock in that corporation and immediately afterward you are in control of the corporation, the exchange is usually not taxable. This rule applies both to individuals and to groups who transfer property to a