Ezel / IRS Rulings / 200848055

CCA 200848055: Section 351 answer is limited to the carryover-basis amount

Number
200848055
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Treatment of Certain Transferees
Topics
Income and deductions
Code sections
§ 168, § 351
Ruling dated
July 24, 2008
Publicly released
November 28, 2008
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2008
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

A question concerned moving Schedule C assets to a new C corporation. Chief Counsel gave a qualified yes if IRC § 351 applied, but only to the extent the new corporation's basis did not exceed the transferor's adjusted basis. The released email does not identify the precise tax treatment to which that answer referred.

Ruling snapshot

  • Question: What treatment applies to Schedule C assets transferred to a new C corporation?
  • Outcome: Advice given. The unidentified treatment applies if section 351 governs, limited to the carryover-basis amount.
  • Key authorities: IRC §§ 168 and 351.

Full text (IRS public release)

ID: CCA_2008072416054757 Number: 200848055
Office: ----------------
Release Date: 11/28/2008

UILC: 168.28-00

From: ------------------
Sent: Thursday, July 24, 2008 4:05:48 PM
To: ----------------------
Cc:
Subject: RE: Schedule C to C-Corp

If section 351 applies, yes to the extent the new C-corp's basis in the assets does not
exceed the Schedule C taxpayer's adjusted basis in the assets.

-----------------

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