The same exact requirements for forming and contributing property govern S corporations and partnerships.

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S corporations and partnerships are governed by different sets of tax rules and regulations regarding the formation, operation, and contribution of property. For example, the rules for contributing property to a partnership can result in a tax-free transaction under certain conditions (IRC Section 721), whereas contributing property to an S corporation may result in taxable gain if the transaction does not meet specific requirements (IRC Section 351).

The Same Exact Requirements for Forming and Contributing Property Govern