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5 Reasons Investors Use a Section 351 Exchange

5 ways investors use 351 exchange to lower tax bill and diversify

For investors sitting on highly appreciated assets, a Section 351 exchange is a powerful—but often overlooked—tool. It enables investors to contribute assets in-kind to a newly formed Exchange-Traded Fund (ETF), deferring capital gains taxes while gaining the flexibility and tax efficiency of the ETF structure. Here are the five most common reasons investors use this … Read more

Avoid Forced Capital Gains: Using a Section 351 ETF Exchange Before a Take-Private Deal

Using a Section 351 ETF Exchange Before a Take-Private Deal

Imagine holding a stock for years, watching it appreciate 300%, only to see that position disappear from your brokerage account because a private equity firm decided to take the company private. You get a cash premium for the shares, but when a public company is acquired for cash, or a mix of cash and stock, … Read more