Zoe transfers the business assets or her sole proprietorship

Zoe transfers the business assets or her sole proprietorship to C Corp. in a nontaxable exchange on September 1, 20X1. The holding period for all of Zoe\'s stock in C Corp. commences on: a. the date of exchange b. the first day of the year I which the exchange took place c. the holding period for the assets in the sole proprietorship d. the last day of the year in which the exchange took place

Solution

Solution: c. the holding period for the assets in the sole proprietorship

Explanation: Because Zoe owned them in her sole proprietorship thus the holding period for the assets would carry over.