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Section 351 - Tax-free creation of a corporation

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Section 351 allows the tax-free creation of a corporation, or, rather, the tax free contribution of money or property to a corporation in exchange for stock in that corporation. Is this really a "tax-free" provision or is it something else?

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Discusses Section 351 related to Tax-free creation of a corporation.

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This is tax free in the sense that no immediate tax is levied as per Section 351. However, this is not "tax-free" for indefinite period of time and the tax liability is just ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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