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?© BrainMass Inc. brainmass.com June 4, 2020, 3:10 am ad1c9bdddf
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 ...
Discusses Section 351 related to Tax-free creation of a corporation.