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Boe 230 M Form

Boe 230 M Form

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in this video we're gonna talk about how to account for a section 351 transaction when the transfer or is giving liabilities to the corporation so if you remember the three requirements they have a section 351 transaction are that the transfer Wars are giving property to the corporation in exchange solely for the corporation stock and then the transfers have control of the corporation immediately afterwards so with liabilities the question is regarding this this first requirement here and also the second one so basically they're transferring something other than property right a liability for example debt that is attached to property that's not property so so how do we account for that and so we think about solely in exchange for the corporation stock well they're not just getting stock there in a sense getting debt relief right because if you give your liabilities to the corporation then you're getting your debt relief you don't have to

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