Han transferred land to his solely owned corporation in a §351 transaction. Han had held the land for two years prior to the transfer and recognized no gain on the transfer. The corporation will tack Han's holding period for the land.

Question

Quizplus · Accepted Answer

Under §351, if a transfer of property to a corporation is solely in exchange for stock and the transferor receives control of the corporation, no gain or loss is recognized on the transfer. The holding period of the property will also carry over to the corporation for determining the holding period of the stock received.

Han Transferred Land to His Solely Owned Corporation in a §351