Michelle owns appreciated property and she wants to use this property to start a business with her son, Lance. Michelle is considering making a contribution of the property to a newly organized corporation in exchange for 100 percent of the corporate stock. She then contemplates giving half of the stock to Lance in exchange for his promise to manage the business. Do you think this transaction will qualify for 351 treatment? Suppose that Michelle promises that she won't transfer the stock for a month after making the contribution of property. Any difference? Compare Rev. Rul. 54-96, 1954-1 CB 111 and Intermountain Lumber Co., 65 TC 1025 (1976).

Basically I need to write a page comparingRev. Rul. 54-96, 1954-1 CB 111 andIntermountain Lumber Co.,65 TC 1025 (1976).