CPE: 4 hours
Advanced prep: None
Who should attend: CPAs and attorneys with at least two years of experience advising owners of privately held businesses; financial management and owners of privately held corporate businesses; IRS and FTB employees.
The tax consequences related to the transfer of property to a corporation for corporate stock can be eligible for a favorable tax deferred result. Learn when and how the favorable result is accomplished. Topics considered include asset transfer for stock, the formation of a new corporation starting a new business, the incorporation of an existing business, incorporation of partnerships or LLCs, statutory entity conversions and checking the box for existing partnerships converting to a corporation.
- Determine the requirements to qualify for tax deferral as a result of IRC 351.
- Recognize the tax consequences of receiving something other than stock ("boot").
- Identify and illustrate complications related to liability assumptions.
- Recall anti-abuse rules related to transferring assets with built in losses.
- Determine how to apply IRC 351 to transactions converting partnerships and LLCs to corporations.
- Identify special complications related to incorporating an existing business.
- Recognize the complications related to transfers involving both property and performance of services.
- IRC 351: Qualification for tax deferred result and application of to transactions converting partnerships and LLCs to corporations
- Tax consequences of receiving something other than stock (“boot")
- Complications related to liability assumptions
- Anti-abuse rules related to transferring assets with built in losses
- Incorporating existing businesses
- Transfer involving both property and the performance of services
- Transfers with both corporate debt and stock received for property
- Complication when corporation has multiple classes of stock