How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

If I sell a company I own for stock in another company. Is

Customer Question

If I sell a company I own for stock in another company. Is the value of the stock that I received taxed as income, or is it taxed when I sell the stock as capital gains.
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

When you exchange one asset for another - it is treated as two transactions:

-- disposition of the first asset, and

-- purchase of the new asset.


The disposition of the first asset is treated as if you sell that asset at its fair market value. That is a taxable transaction - depending on the basis you have in that asset, type of the asset, and how long you owned that asset - you might recognize a taxable income.


The purchase of a new asset is not a taxable transaction. You might have a tax liability when you sell that asset.


Let me know if you need any help.