(a) General rule. — No gain or loss shall be recognized to a special employee-owned corporation or to its members or shareholders in the case of a contribution of money or other property to the special corporation, except as provided in subsections (b) and (c) of this section.(b) Flexibly depreciated property. — In the case of a contribution of flexibly depreciated property, no gain or loss shall be recognized to a special corporation or its members or stockholders unless they elect otherwise. The election to recognize gain or loss shall be irrevocable.(c) Property subject to liability or lien. — In the case of a property contribution that is subject to liability or lien, which is assumed by the special corporation, gain shall be recognized to the contributing member or stockholder to the extent that the liability or lien portion from which he/she is discharged exceeds the adjusted basis for the contributing member or stockholder, on the contributed property. History —Jan. 31, 2011, No. 1, § 1113.08, retroactive to Jan. 1, 2011.