Irc Section 351

351 allows a tax free incorporation transfer if certain requirements are met including that the property must be transferred to a corporation by one or more persons in exchange for stock in the corporation and immediately after the exchange the transferor s is are in control as defined in sec.

Irc section 351. Irc section 351 a broad rule applying to corporations generally defers from taxation any gain or loss incurred on property transferred to a corporation in exchange for stock. Internal revenue code section 351 transfer to corporation controlled by transferor. Regarding the federal income tax consequences of a new corporate structure that will result in a holding company with subsidiaries with various charters being all chartered under tribal law.

Whether you re setting up a new corporation with just yourself or other people such as partners in a partnership or getting involved in an existing corporation under irc section 351 a you can defer put off any resulting tax consequence. The requirements of irc section 351 are discussed below. Private letter rulings irc section 351.

The irc of course is the final authority and accordingly 351 property includes anything qualifying as secret processes or formulas under irc 861 a 4 and irc 862 a 4 and any other secret information in the general nature of a patented invention even if it is not technically patented in the patent law sense. The amendments made by this section amending this section and sections 355 358 and 368 of this title shall not apply to any distribution pursuant to a plan or series of related transactions which involves an acquisition described in section 355 e 2 a ii of the internal revenue code of 1986 or in the case of the amendments made by. General rule under section 351 a no gain or loss shall be recognized if 1 property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and 2 immediately after the exchange such person or persons are in control of the corporation as defined in irc section 368 c.

368 c of the corporation.