Section 351:  Section 351 permits the transfer of property to a corporation for stock, but only if the transferor(s) maintain control of the corporation immediately after the exchange. Having at least 80% of the voting power and shares is considered control.

Contributing assets to an existing corporation or conducting incorporation are common uses of it.

Section 368:  Section 368 is the law that governs corporate reorganizations that are not taxed, such as mergers and acquisitions. In order to qualify, the transaction must meet certain requirements, such as maintaining continuity of ownership interest, maintaining continuity of business enterprise, and having a valid business purpose.

Section 368 is expanded to encompass restructuring scenarios instead of initial asset transfers.

The main distinction is how they are applied: Section 351 focuses on property transfers to corporations, while Section 368 handles reorganizations that involve multiple entities.

Under Section 351 and Section 368, the transfer of property or assets is permissible without acknowledging gain. Provided that the transactions comply with the specific requirements laid out in the Internal Revenue Code.