"David" <david4731[at]hotmail.com> wrote:

- quote -

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

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David wrote:

- quote -

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...

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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

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >