Which of the following types of transactions qualify for nonrecognition treatment?
A)Exchange by a shareholder of stock in Chevron for stock in Shell.
B)Investment of the proceeds from the sale of the stock of a publicly traded company in the common stock of a specialized small business investment company (SSBIC) within 60 days of the sale.
C)Investment of proceeds from the sale of qualified small business stock in another qualified small business stock within 60 days of the sale.
D)Only b.and c.
E)a., b., and c.

Question

Quizplus · Accepted Answer

Option A does not qualify for nonrecognition treatment as it is a stock-for-stock exchange between different companies. Options B and C both involve the reinvestment of proceeds from the sale of certain types of stock into other eligible securities within a specified time frame, and thus qualify for nonrecognition treatment. Therefore, only options B and C satisfy the criteria for nonrecognition treatment.

Which of the Following Types of Transactions Qualify for Nonrecognition