MBA 614 Project

The spreadsheet allows for a basic computation of Internal Revenue Code (IRC) Section 351 transactions (http://www.taxalmanac.org/index.php/Internal_Revenue_Code:Sec._351._Transfer_to_corporation_controlled_by_transferor).  In a 351 transaction, a person transfers property to a corporation in exchange for stock.  Property can consist of money or any tangible or intangible property, such as machines, patents, customer lists, buildings, etc; property can be almost anything.  No gain or loss to the corporation will occur for tax purposes in receiving the property given; to the transferor, gain or loss is not recognized for tax purposes unless taxable boot* is received in the transaction from the corporation.  Boot can be cash or property (other than the corporation’s stock).  When boot is given to the transferor, the recognized (taxable) gain to the transferor is the lesser of the realized gain (the gain that occurred, but will not be taxable), or boot received.

 http://files.gove.net/shares/files/11w/surban/Final_Project_Write-up.pdf
http://files.gove.net/shares/files/11w/surban/Final_project.xlsm