Question
What tax applies to non-excluded §1202 gain?
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Answer
28% plus 3.8% NIIT.
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Question
Why is contributing appreciated property to a partnership often less tax-costly than contributing it to a corporation?
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Answer
Partnerships preserve built-in gain under §704(c).
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Question
Why are partnerships more flexible than corporations for staged contributions?
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Answer
§721 has no control requirement.
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Question
Why is a C corporation usually the costliest entity to liquidate?
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Answer
Both the corporation and shareholders recognize tax.
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