Question

Transfer of assets from sole proprietor to corporation

Forum|Forum|6 years ago
November 10, 2019
2 replies
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Employee

Do you have a question regarding such a transfer? You really should seek professional guidance.

Regardless, Section 351(a) of the Internal Revenue Code provides that no gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control (as defined in § 368(c)) of the corporation.

See https://www.irs.gov/pub/irs-drop/rr-03-51.pdf

Critter

Employee

If you have never set up a corporation and it's books before I highly recommend you seek professional assistance locally to be educated especially if your sole prop company has poor records.