[mimi]

Could someone help me understand regarding gain recognition for a contributed person (receiving 80%+ shares and controlling the firm) at the time of corporate formation?

A textbook says a basic rule is that if a contributed person controls a firm, gain is not recognised and this rule prevails even when receiving boot (cash, assumed mortgage etc). However, some workbooks indicate opposite; controlling contributed person recognizes gain when receiving boot.

Which one is correct? Or any other way of understanding?
Thank you!