Question

Which of the following qualify as property under Section 351? (Check all that apply.)

A) Cash
B) Trademarks
C) Real Property

Answer 1

Cash, Trademarks, and Real Property all qualify as property under Section 351 when transferred to a corporation in exchange for stock, assuming conditions of the code are met.

Step-by-step explanation:

Under Section 351 of the Internal Revenue Code, property that can be transferred to a corporation by one or more persons in exchange for stock in a corporation as part of a qualifying transaction includes: Cash, Trademarks, and Real Property.

These assets are generally recognized by the IRS as property for the purposes of a tax-deferred transfer, provided that certain conditions are met. It is important to follow the specific regulations articulated in Section 351 to ensure the transfer is handled correctly for tax purposes.