Final answer:
Under §351 of the Internal Revenue Code, qualifying properties for a tax-free exchange include cash, promissory notes, and stock, but not services. These can be tangible or intangible assets transferred to a corporation in exchange for its stock.
Step-by-step explanation:
The question refers to §351 of the Internal Revenue Code (IRC), which addresses the transfer of property to a corporation by one or more persons. Under §351, certain transfers of property can allow the individual or group contributing the property to receive stock of the corporation without recognizing a gain or loss, provided specific requirements are met. Qualifying property generally includes tangible and intangible assets like cash, land, buildings, and equipment, but can also encompass other items like vehicle fleets, machinery, patents, or trademarks.
Among the options provided:
Cash, which is a form of property, would qualify under §351.
However, services do not qualify as property. Compensation for services is typically taxed differently under the IRC.
Stock of another corporation would typically qualify as property under §351 if it is being contributed to the corporation.
Promissory notes, which are evidence of debt, can also be considered property for purposes of §351.