A shareholder transfers a capital asset to Red Corporation for its stock. If the transfer qualifies under § 351, Red's holding period for the asset begins on the day of the exchange.

Answer the following statement true (T) or false (F)


False

Rationale: A transferee corporation's holding period for property acquired in a § 351 transfer is that of the transferor-shareholder, regardless of the character of the property.

Business

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