The holding period of stock received in an exchange qualifying for nontaxable treatment under § 351 begins on the date the transferred asset was acquired, assuming the asset was a building used in the transferor's sole proprietorship.

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According to IRS regulations, when stock is received in an exchange qualifying for nontaxable treatment under § 351, the holding period of the stock begins on the date the transferred asset was acquired, assuming the asset was a building used in the transferor's sole proprietorship. This is stated in Treasury Regulations 1.1223-3(d).

The Holding Period of Stock Received in an Exchange Qualifying