Irs Code Section 351

Section 351 a provides in general for the nonrecognition of gain or loss upon the transfer by one or more persons of property to a corporation solely in exchange for stock of such corporation if immediately after the exchange such person or persons are in control of the corporation to which the property was transferred.

Irs code section 351. No gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the. Internal revenue code section 351 transfer to corporation controlled by transferor. 1954 as amended by this section shall apply only with respect to transfers made after december 31 1970.

Section 351 transfer to corporation controlled by transferor. 3 transition rule the amendments made by this section 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 subsection c any transfer occurring after. In addition to participating in the promulgation of treasury tax regulations the irs publishes a regular series of other forms of official tax guidance including revenue rulings revenue procedures notices and announcements see understanding irs guidance a brief primer for more information about official irs guidance versus non precedential rulings or advice.

The transaction is treated as if you sold property to the corporation in return for cash. The amendments made by this section amending this section and section 1492 of this title shall apply to transfers made after december 31 1967. Exchange for an amount of stock in the first corporation constituting control satisfies the control requirement of 351 of the internal revenue code if pursuant to a binding agreement.

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. What is a section 351 a tax free exchange. A version of section 351 has been included in the internal revenue code since the revenue act of 1921 2 in 1989 congress amended section 351 to repeal non recognition treatment for securities received by a transferor in the exchange.

In 1997 congress amended section 351 to exclude the receipt of nonqualified preferred stock from non recognition. B a municipality is entitled to receive all funds from a hotel project described by section 351 102 b that an owner of a project may receive under section 151 429 h of this code or section 2303 5055 government code and all tax revenue collected under chapter 183 by or from all permittees at the hotel project excluding revenue disbursed. Except that sections 367 d and 1492 of the internal revenue code of 1986 formerly i r c.