What is a section 351(a) exchange?

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.

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.

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.

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.