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  • How to calculate the shareholders gain on property contributed to a C Corporation?

    Shareholders can contribute property to a C Corporation in exchange for shares in the corporation. Under certain situations, the shareholder might have to recognize a gain on the contributed property. To understand if a gain should be recognized, the shareholder should start with the debt assumed by the corporation and subtract their net book value...

  • How is a C Corporation formed?

    C Corporations are formed by shareholders contributing “stuff” in exchanges for shares in the company. As you can see in the visual below, the “stuff” that shareholders can contribute includes cash, property, or their services.