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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595

Annotation 395.1841

(i) Transfers and Contributions to New Corporation or Partnership


395.1841 Commencing Corporation. A corporation may be considered a "commencing corporation" within the meaning of Regulation 1595(b)(4) even though shares of the corporation are not immediately issued upon its formation. Where there is a delay in the issuance of such stock, a facts and circumstance test will be applied to determine whether a corporation is regarded as a "commencing corporation" when it issues stock in exchange for property. 7/15/93.