Section 351 or 354 transfer? to LLC / Partnership

If I transfer publically held shares of stock from an investment account held currently in a personal account with Ameritrade into an account titled in an LLC (Partnership) with Ameritrade and I receive the proper amount of membership interest in the LLC for the amount of current market stock value I transfer in, will this be considered a non-taxable event? If so, is this a Section 351 or 354 transfer? Is there anything special I need to do when I file my taxes to indicate this or just remember the section number I am under? Thanks,

-David

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Reply to
David
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If the LLC has not made an election to be taxed as if it is a corporation, the contribution to the LLC - in exchange for an ownership interest - is tax-free, and I believe it's that pursuant to IRC section 721. Section 351 would apply to a contribution to a controlled corporation. IIRC you don't have to file anything with your tax return. Are you suggesting that there might be something different about "publically held shares of stock"? If so, I'm not tracking...

Reply to
LoTax

Unless it's a merger between the corporation and the LLC, sectino 354 won't apply. For section 351 to apply the transaction will have to be done at the same time as other transactions such that those engaging in those transactions own a total of 80% or mroe of the equity in the LLC. There are other issues involved as well, and someone else who knows those better will come along soon. Stu

Reply to
Stuart A. Bronstein

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