When consideration is transferred to a corporation in return for stock, the definition of "property" is important because tax deferral treatment of § 351 is available only to taxpayers who transfer property.

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Under § 351 of the Internal Revenue Code, the term "property" is crucial because the section allows for the deferral of recognition of gain or loss when property is transferred to a corporation in exchange for its stock, provided certain conditions are met. Cash, tangible assets, and intangible assets can all be considered property for the purposes of this section.

When Consideration Is Transferred to a Corporation in Return for Stock