Property for Stock

Property for Stock lets controllers and tax teams model an IRC Section 351 tax-free incorporation transfer before recording it on the books. Enter the contributed property's fair market value, adjusted basis, any liabilities assumed, and boot received, and it works out the transferor's recognized gain, substituted stock basis, and the corporation's carryover basis in the property. It surfaces the control-test and boot conditions that determine whether the exchange qualifies for nonrecognition under Section 351.

Determining whether a property-for-stock contribution qualifies for tax-free treatment under IRC Section 351 and computing the resulting gain and basis is error-prone to do by hand before booking it.

You input each transferor's contributed property fair market value, adjusted basis, liabilities assumed, and boot received; the tool applies Section 351 rules to compute recognized gain, the shareholder's stock basis, and the corporation's carryover basis in the assets.

• ✓Modeling a founder or investor contributing appreciated property into a newly formed corporation for stock
• ✓Checking whether boot or assumed liabilities trigger recognized gain before the exchange closes
• ✓Calculating substituted stock basis and the corporation's carryover asset basis for the opening journal entry

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