As a general rule, the transfer of property to a corporation in exchange for stock does not result in a taxable transaction.

Name: As a general rule, the transfer of property to a corporation in exchange for stock does not result in a taxable transaction.
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Quizplus · Accepted Answer

This is known as a non-taxable stock-for-property exchange, as long as the transfer meets certain requirements under Section 351 of the Internal Revenue Code.

As a General Rule, the Transfer of Property to a Corporation