All the following statements are true about corporate reorganization except:
A) Taxable amounts for shareholders are classified as a dividend or capital gain.
B) Reorganizations receive treatment similar to corporate formations under § 351.
C) The transfers of stock to and from shareholders qualify for like-kind exchange treatment.
D) The value of the stock received by the shareholder less the gain not recognized (postponed) will equal the shareholder's basis in the stock received.
E) All of these are true.

Question

Quizplus · Accepted Answer

C) The transfers of stock to and from shareholders do not qualify for like-kind exchange treatment under Section 1031, as like-kind exchanges are specific to real property as of the Tax Cuts and Jobs Act of 2017. Corporate reorganizations have their own set of rules under the Internal Revenue Code, distinct from like-kind exchanges.

All the Following Statements Are True About Corporate Reorganization Except