362 - Internal Revenue Code 362 Basis to corporations(a...

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Unformatted text preview: Internal Revenue Code 362 Basis to corporations. (a) Property acquired by issuance of stock or as paid-in surplus. If property was acquired on or after June 22, 1954, by a corporation (1) in connection with a transaction to which section 351 (relating to transfer of property to corporation controlled by transferor) applies, or (2) as paid-in surplus or as a contribution to capital, then the basis shall be the same as it would be in the hands of the transferor, increased in the amount of gain recognized to the transferor on such transfer. (b) Transfers to corporations. If property was acquired by a corporation in connection with a reorganization to which this part applies, then the basis shall be the same as it would be in the hands of the transferor, increased in the amount of gain recognized to the transferor on such transfer. This subsection shall not apply if the property acquired consists of stock or securities in a corporation a party to the reorganization, unless acquired by the exchange of stock or securities of the transferee (or of a corporation which is in control of the transferee) as the consideration in whole or in part for the transfer. (c) Special rule for certain contributions to capital. (1) Property other than money. Notwithstanding subsection (a)(2) , if property other than money (A) is acquired by a corporation, on or after June 22, 1954, as a contribution to capital, and (B) is not contributed by a shareholder as such, then the basis of such property shall be zero. (2) Money. Notwithstanding subsection (a)(2) , if money (A) is received by a corporation, on or after June 22, 1954, as a contribution to capital, and (B) is not contributed by a shareholder as such, then the basis of any...
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This note was uploaded on 11/21/2010 for the course ACCT 732 taught by Professor Ford,a during the Spring '08 term at Kansas.

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362 - Internal Revenue Code 362 Basis to corporations(a...

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