Section 351 exchange
In accounting, section 351 exchange means a transfer of property to a corporation solely for its stock, with no gain or loss recognized when the transferors control it immediately after — at least 80% of the combined vote and 80% of every other class of stock.
Authority: 26 U.S.C. §351(a) (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- tax-free reorganization (§368(a))
Also in Entity types
Defined in Lexicon. This page is generated from that document, so the two can't disagree.