# Section 351 exchange

> Section 351 exchange — 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.

Source: https://lopifi.com/glossary/section-351-exchange
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- tax-free reorganization (§368(a))

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)