Got Crypto? Why Direct Contributions to New ETFs Are a Tough Sell
Ever thought about using a nifty IRS Section 351 tax free exchange to contribute your cryptocurrency directly to an exciting, new ETF? It’s an intriguing idea, but today’s financial and regulatory landscape throws up some serious hurdles. Currently, directly transferring spot cryptocurrencies to a new ETF launches through a 351 exchange isn’t an option. Why […]
Breaking Down Exchange Funds vs. Exchange-Traded Funds (ETFs): How Investors Can Diversify Without Tax Pain
For investors holding concentrated stock positions or those with significant unrealized gains, diversifying can incur a hefty capital gains tax bill. Enter exchange funds and exchange-traded funds (ETFs)—two options that cater to different scenarios while offering unique benefits. Let’s demystify their differences and explore how you can use them to achieve diversification. What Are Exchange […]
The “Look-Through” Rule: A Closer Look at ETF Diversification in 351 Exchanges
Section 351 of the Internal Revenue Code offers a powerful tax-deferral tool for investors seeking to diversify their portfolios without triggering immediate capital gains. This provision allows individuals to contribute appreciated assets to a corporation, often an Exchange-Traded Fund (ETF), in exchange for shares, deferring taxes on those gains. However, this tax-free exchange is contingent […]