malibu.ron[at]verizon.net wrote:

- quote -

Corporate stock is not qualified property for purposes of a
Sec. 1031 exchange. You may be thinking of QSBS (Qualified
Small Business Stock). There is the possibility of either
rolling over any gain into some other QSBS or avoiding 50%
of any gain upon sale if certain rules are met. See the
following link for more information on QSBS:

http://www.1120accountant.com/small-business-stock.htm

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<malibu.ron[at]verizon.net> wrote:

- quote -

I don't think it's section 1031, but it's the same
principle. See the discussion of stock in certain
businesses in IRS Publication 550.

- quote -

You cannot.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<malibu.ron[at]verizon.net> wrote:

- quote -

This is not a 1031 exchange. It comes under another section
to which someone else will have to refer you. It is very
situation specific and applies to the exchange of the stock
of your company for stock in the company of the buyer.

- quote -

You can do that in a Roth IRA otherwise NO!

Dick

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Someplace I read that it may be possible to complete a 1031
exchange of stock using the following method. Purchase
various shares of stock in the name of a closely held
corporation, hold it for 5 years, then exchange the
corporate stock for other shares. Here is the purpose
behind my pursuit. I want to buy shares in a public company
that in 5 years I feel should do very well. "After 5 years"
I would like to exchange (1031) the increased value shares
for a block of tax free bonds, etc. and start receiving the
dividends. The purpose is to have the full use of the tax
deferred increase until I choose to sell anything. I recall
this idea basically is done with closely held corporate
stock of companies that were engaged in manufacturing, real
estate or some business other than holding stock and bonds
and then "exchanged" for shares in another corporation. One
of the key issues may evolve around the period of time, 5
years or more the corporation held the shares. Any
enlightenment on this idea will be appreciated.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >