Kim,a real estate dealer,and others form Eagle Corporation under § 351.Kim contributes inventory (land held for resale)in return for Eagle stock.The holding period for the stock includes the holding period of the inventory.

Question

Quizplus · Accepted Answer

Under § 351, the holding period for stock received in exchange for inventory begins on the day after the exchange, as inventory is considered an ordinary asset, not a capital asset.

Kim,a Real Estate Dealer,and Others Form Eagle Corporation Under §