Formation and Liquidation of Business Entities

Free CPA TCP (Tax Compliance & Planning) lesson in Entity Tax Planning. 18 min read, ~2,640 words.

§351 permits tax-free corporate formation when transferors receive solely stock and control 80% immediately after; boot triggers gain limited to the lesser of boot FMV or realized gain (losses never recognized). §721 permits tax-free partnership formation with no control requirement; even a 1% partner qualifies, but services for an interest...