This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- How to qualify for a tax-free incorporation under Section 351 by meeting the property-for-stock and 80% control tests.

- The critical distinction between transferring property (non-taxable) versus services (taxable) in exchange for stock.

- How receiving "boot," such as cash or other property, can trigger gain recognition in an otherwise tax-free exchange.

- The most common exam trap: how liabilities assumed by the corporation in excess of the property's basis create a taxable gain under Section 357(c).

- A simple mental shortcut for calculating the shareholder's basis in the new corporate stock after the exchange.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep