351Conversion.com

Category: 351 Exchange

Everything about a IRS Code 351 Tax Free Exchange. Under Code Section 351(a), there is no recognized gain or loss if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in “control” (as defined in Section 368(c)) of the corporation. For example, individual SMA investors will contribute securities to a newly formed ETF in exchange for shares of the ETF.

351 Exchange vs. 351 Conversion: Which Term is Correct?

whats the difference between a 351 exchange and a 351 conversion

When discussing the strategic move of investment portfolios, such as Separately Managed Accounts (SMAs), into the efficient structure of an Exchange Traded Fund (ETF) without triggering immediate tax liabilities, you’ll often encounter two key phrases: 351 exchange and 351 conversion. You might wonder if these are different processes that commonly get confused like Exchange Fund […]

Got Crypto? Why Direct Contributions to New ETFs Are a Tough Sell

Rule for contributing Spot Crypto currencies Into An ETF via 351 exchange

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

Exchange Funds vs ETFs Diversifying without Capital Gains

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 […]