TXX5768

Which of the following statements is false?

	A.	When appreciated real estate (other than a residence) is transferred from one spouse to another spouse as part of a divorce settlement, the transferor spouse recognizes gain to the extent the fair market value on the date of transfer exceeds the transferor spouse's adjusted basis.
	B.	If one corporation sells real estate at a loss to another corporation, and both corporations are owned by the same shareholder who owns more than 50% of the outstanding stock of both corporations, such loss is not deductible.
	C.	The definition of a capital asset contained in IRC1221 tells taxpayers what is NOT a capital asset rather than what IS a capital asset.
	D.	Generally the Internal Revenue Code definition of a capital asset does not include real property used in a trade or business. Nevertheless, when real estate used in a trade or business is sold, some of the gain may still qualify for capital gain treatment in certain circumstances.
	E.	All of the above are true.