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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.

Insurance Against Tax Claims From IRS for 351 Conversion

Shielding Against 351 Conversion Risks with Tax Liability Insurance Navigating the world of taxes can be like walking through a minefield, especially when dealing with complex transactions like converting a separately managed account (SMA) into an exchange-traded fund (ETF) under the U.S. tax code’s Section 351. The stakes are high, and the potential tax consequences […]

Everything You Need To Know About A 351 Tax Free Conversion

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What is a 351 ETF Conversion? A 351 ETF conversion allows investors to transfer assets into an ETF in exchange for shares without triggering a taxable event. This tax-related mechanism is specifically under U.S. tax law Section 351 of the Internal Revenue Code. Investors can contribute a portfolio of investments and, in return, receive a […]