A Shareholder's Holding Period of Stock Received in an Exchange

The shareholder's holding period for stock received in an exchange depends on the shareholder's holding period for the property transferred to the corporation in exchange for the stock.

The holding period for stock received in a Section 351 exchange includes the period the taxpayer held the property transferred.

Corporation's Holding Period in Property Received in an Exchange

The corporation takes over the holding period that the shareholder had in the property he/she transferred to the corporation under a Section 351 exchange.

QuickBooks Self-Employed
For Freelancers and independent Contractors

- Organize your financial data into one central accounting system on the cloud
- Software kept up to date.
- Your data kept secure
- Anytime, anywhere data access.
- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
- Save up to 50% off QuickBooks Self-Employed. Track every deduction! Start your free trial now!

Have an accounting or bookkeeping question? Email it to me.