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    What are the statutory requirements of Section 351?

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    What are the statutory requirements of Section 351? What is the definition of control under Section 351? Why does Congress require shareholders to control a corporation to receive a preferential tax treatment? When might a taxpayer not want to meet the requirements of Section 351?

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    What are the statutory requirements of Section 351?

    Sec. 351. Transfer to corporation controlled by transferor

    (a) General rule
    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 exchange such person
    or persons are in control (as defined in section 368(c)) of the
    corporation.
    http://www.taxalmanac.org/index.php/Sec._351._Transfer_to_corporation_controlled_by_transferor

    What is the definition of control under Section 351?

    Control is defined as 80% meaning that the new corporation shall be controlled to the extent of 80% by the same people ...

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