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A like-kind exchange under United States tax law, also known as a 1031 exchange, is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset. A like-kind exchange can involve the exchange of one ...
Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property, a process known as a 1031 exchange.
Given its dependence on the IRS Tax Code, it is a mechanism specific to the U.S., first introduced as early as 1954 with the passage of 26 U.S. Code § 721 [1] though the practice traces back to the 1930s through other tax provisions. The primary benefit of this arrangement is to diversify a large stock position without triggering a "taxable ...
The post The Tax Consequences of Transferring Stock to a Trust appeared first on SmartReads by SmartAsset. There are significant tax implications associated with this strategic decision that you ...
A couple comparing tax implications for ETFs vs. mutual funds. Mutual funds are investment vehicles that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or ...
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Section 355 of the Internal Revenue Code (IRC § 355) allows a corporation to make a tax-free distribution to its shareholders of stock and securities in one or more controlled subsidiaries. If a set of statutory and judicial requirements are met, neither the distributing corporation nor its shareholders recognize gain or loss on the distribution.
The tax rates vary depending on your income level and tax bracket. It’s important to remember that this ordinary income tax rate applies to most passive income streams, but there are exceptions ...