I would like to transfer publically traded stocks (like Intel) from a personally titled Ameritrade account into a new Partnership (LLC) account with Ameritrade. So long as I maintain a majority control over the Partnership by receiving the proper percentage of membership interest in the LLC for the current market value of the stock transferred, it is my belief that this would not be considered a taxable event by the IRS under either Section
721, Section 351, or Section 354. My personal basis on each stock investment would therefore transfer to the LLC and become the cost basis for each investment that the LLC owns. The LLC will hold these investments long-term (possibly make some new purchases with cash) and potentially (yet rarely) sell and re-invest in other stocks (asset re-allocation). In a sense, this would be an "investment company / LLC / partnership". Section 721 and 351 makes note of an exception to the rule referring to an "investment company" (as defined in Section 351). Also, publically held stock may be considered an "intangible" asset. Could you please explain whether section (d) of Section 721 ("Transfers of intangibles") needs to be considered in regards to this transfer in order to keep it a non-taxable transfer? Thanks,-David