As a general rule,the transfer of property by a taxpayer to a corporation in exchange solely for 100% of the stock does not result in a taxable transaction.

Question

Quizplus · Accepted Answer

This is known as a non-taxable exchange under Section 351 of the Internal Revenue Code. However, there are certain conditions that must be met for the transaction to be non-taxable, such as the transfer being solely in exchange for stock and the transferor receiving control of the corporation.

As a General Rule,the Transfer of Property by a Taxpayer