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

Name: As a general rule, the transfer of property by a taxpayer to a corporation in exchange solely for 100 percent of the stock does not result in a taxable transaction.
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This is known as a tax-free incorporation and is allowed under certain conditions outlined in the Internal Revenue Code.

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