In general, the basis of property to a corporation in a transfer that qualifies as a nontaxable exchange under section 351 is the basis in the hands of the transferor shareholder decreased by the amount of any gain recognized on the transfer.

True or False

Green company, a U.S. corporation based in Texas, manufactures and sells a product which includes some componens made in he Dominican Republic. None of Green's income from sales constitute DPGR.

True or False

The related-party loss limitation in a complete liquidation applies only to distributions of property while the built-in loss limitation can apply to a distribution or sale of property.

True or False