00:00The Treasury Department and IRS are targeting a strategy that allows investors to move highly
00:06appreciated stocks into ETFs without immediately triggering capital gains taxes. The approach
00:12combines a decades-old tax provision known as Section 351 with rules governing ETF redemptions,
00:19potentially allowing investors to defer taxes while effectively swapping into a different
00:23portfolio. The IRS says some of these transactions are structured to produce a tax result
00:29that neither provision was intended to provide. Treasury and the IRS are now treating certain
00:34transactions as taxable exchanges and considering additional guidance.
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