WebDec 7, 2024 · receiving a contribution of IP from a shareholder, purchasing or licensing the use of IP from another person, or; creating IP in-house. Under Internal Revenue Code (Code) § 351, a shareholder's contribution of property, such as IP, to a corporation will be tax-free if. the transfer is solely in exchange for stock of the transferee corporation, and WebTax Free Contributions. Treas. Reg. §1.351-1 (a) (2), Example 1 (Section 351 Exchange With New Corporation).pdf Treas. Reg. §1.351-1 (a) (2), Example 2 (78% is Insufficient to Qualify Under Section 351).pdf Treas. Reg. §1.351-1 (a) (2), Example 3 (80% Threshold Includes Stock Received for Services).pdf Treas. Reg. §1.351-1 (b) (2), Example ...
Sec. 351 transfers involving boot and encumbered assets.
WebContributions to an “investment company” do not qualify for tax-free treatment.[ref]I.R.C. § 351(e).[/ref] An investment company is generally defined for this purpose as a corporation in which more than 80 percent of the fair market value of contributed property (exclusive of cash and non-convertible debt obligations) consists of publicly-traded securities held for … WebFeb 27, 2012 · Thus, for example, if a deemed section 351 exchange results in the loss of status as a section 1248 shareholder as provided in § 1.367(b)-4(b)(1)(i), the exchanging shareholder must include in income as a deemed dividend the section 1248 amount attributable to the foreign stock that is transferred in the deemed section 351 exchange. christian dior paris slippers
Creating a taxable event via a busted section 351 …
WebThe specific requirements of section 351 are: (1) one or more persons must transfer “property” to a corporation; (2) the property must be transferred solely in … WebNov 4, 2024 · Section 351 exchanges must be relatively clean transactions: property for stock. Confer with your attorney before assuming the contributions would actually be considered property. The transferor must receive controlling stock for the property. In exchange for the property, the transferor (or a group of transferors if there are multiple … WebSection §351 of the Internal Revenue Code applies only to the contribution of property, which does not include services. However, there are exceptions, but you must be careful … christian dior paris siege