Question

true / false: 1 - Losses not deductible due to the stock basis loss limitation rule...

true / false:

1 - Losses not deductible due to the stock basis loss limitation rule are carried over to future years.

2- The definition of property as it relates to an IRC §351 exchange includes money.

3- Gain and loss realized in an IRC §351 exchange will be recognized if the taxpayer receives boot in the exchange.

4 -Activities conducted by business entities are treated as either a trade or business or a hobby

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Answer #1

1) Solution: True

Explanation: The losses which are not deductible due to the basis rules are allowed to carry over to future years.

2) Solution: False

Explanation: The definition of property as it relates to an IRC §351 exchange excludes money

3) Solution: False

Explanation: When boot is received in a section 351 transaction then only gain is recognized

4) Solution: True

Explanation: There are many factors that helps in determining whether an activity is hobby or business

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