No tax is due with respect to tangible personal property of a sole proprietorship that becomes the assets of a corporation resulting from the incorporation of such sole proprietorship. Any such transactions are not a taxable event and shall not be deemed to be a sale under this title.
Property of proprietorship incorporated during tax period
Tenn. Code Ann. § 67-6-223, under Taxes Imposed.
Tenn. Code Ann. § 67-6-223