sole prop to c corp -Assets?

[Unregistered]

Thinking of incorporating small sch c business to C-Corp. How are the
assets transferred--at basis?

[JON]

Look at Code Sec 351

Book basis or FMV whichever is less. Watch out for liabilites being transferred Sec 358.

More to it, but should be some nice examples of "transforor and transferee" statemnts to be filed with the return..

[taxprofessor]

Cars bought by individual for Incorporated Business

Problem. Individual (President) bought cars for his corporation. Corporation does not have credit, so individual bought cars using his name only, no corporate info, and loan to pay for cars under his name. Cars are insured but under individual name. Loan is being paid off by the corporation. Corporation wrote off loan payments as lease payments. Does this sound right - please fill in the holes anyone and if this is wrong - how to fi

[dsi]

I've been through an audit with one of my s-corp clients on this subject....if not titled in the s-corp name, it is NOT a corporate asset. Auditor disallowed related expenses such as depreciation, interest on the loan.

[les grans]

It's been a few (!) years

I thought a Section 351 incorporation would transfer the shareholder's assets to the corporation at their tax basis. When is the transfer at FMV?