Reg. § 1.351-1(c)(1)(i)

diversification under (c)(5), before the diversified-portfolio rule of (c)(6), which (c)(1) applies

UNDECIDED

0 of 2 settled

  1. 1

    Reg. § 1.351-1(c)(1)(i)

    ANY OF
    “A transfer ordinarily results in the diversification of the transferors' interests if two or more persons transfer nonidentical assets to a corporation in the exchange” Reg. § 1.351-1(c)(5)

    “Ordinarily” implies facts and circumstances. Cited by Reg. § 1.351-1(c)(6)(i), Reg. § 1.351-1(c)(7)

    Decided at (c)(5), which also disregards nonidentical assets that together are an insignificant portion of the total value transferred

    Step 2 the transfer ordinarily diversifies: two or more persons transfer nonidentical assets, an insignificant portion disregarded UNDECIDED

    “a transfer is part of a plan to achieve diversification without recognition of gain” Reg. § 1.351-1(c)(5)

    Such as a plan for a later transfer, however delayed, of the assets or the stock received to an investment company in a transaction purporting to qualify for nonrecognition, (c)(5)

  2. 2

    Reg. § 1.351-1(c)(5)

    the transfer ordinarily diversifies: two or more persons transfer nonidentical assets, an insignificant portion disregarded

    ALL OF
    “A transfer ordinarily results in the diversification of the transferors' interests if two or more persons transfer nonidentical assets to a corporation in the exchange”

    “Ordinarily” implies facts and circumstances. Cited by Reg. § 1.351-1(c)(6)(i), Reg. § 1.351-1(c)(7)

    NOT“constitute an insignificant portion of the total value of assets transferred”

    Answer for the nonidentical assets, taken in the aggregate: if insignificant, they are disregarded in determining whether diversification has occurred