business






 

Question by  Leslie (26)

What is a section 351(a) exchange?

 
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Answer by  Richard88 (391)

"351(a)" refers to the section number of an IRS ruling, which is the best answer source. In effect, it says that if you buy stock in a corporation and immediately after the transaction you control it, then no capital gain or loss is recognized.

 
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Answer by  Chris49 (44)

This is when a exchanges his or her property for stock in a company. The company that gets the property for the stock will also take on any libilities that are connected with the property.

 
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Answer by  Henry16 (34)

A 351(a) exchange is when one or more people transfer property to a corporation without reporting a loss or gain. The receiver also assumes any liabilities attached to the property.

 
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Answer by  vijetha (104)

Section 351(a) provides that no gain or loss shall be recognized if property is transferred to a corporation by one or more persons. The proposed regulations did not address section 351(a) exchanges other than those exchanges that are deemed to occur by reason.

 
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