Transactions between a Shareholder and a C Corporation

Free CPA TCP (Tax Compliance & Planning) lesson in Entity Tax Compliance. 17 min read, ~2,543 words.

§351 defers gain on property contributions when transferors control 80% of the corporation immediately after the exchange; shareholder takes substituted basis, corporation takes carryover basis (increased by any gain recognized). Nonliquidating property distributions: corporation recognizes gain (not loss) as if sold at FMV; shareholder's basis in property equals FMV. Cash...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• II.A2

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