Han transferred land to his corporation in a section 351 transaction. Han had held the land for two years prior to the transfer. The corporation will tack Han's holding period for the land.
The holding period of the land "tacks" under section 351.

Question

Quizplus · Accepted Answer

When a taxpayer transfers property to a corporation in a section 351 transaction, the corporation generally takes over the taxpayer's basis in the property and the holding period of the property "tacks" to that of the taxpayer. This is provided in Section 1223(2) of the Internal Revenue Code. Therefore, in this case, the holding period of the land will tack under section 351.

Han Transferred Land to His Corporation in a Section 351