Treasury and IRS Target Tax Avoidance Strategy Using ETFs
The U.S. Treasury Department and Internal Revenue Service (IRS) have issued new guidance targeting a tax avoidance strategy used by wealthy investors to defer capital gains taxes through exchange-traded funds (ETFs). The approach involves transferring appreciated assets into newly formed ETFs under Section 351 of the tax code, which allows for deferral of capital gains when property is transferred to a corporation in exchange for stock. Treasury Secretary Scott Bessent emphasized that authorities are
Topics: capital gains tax ETFs IRS Section 351 exchanges U.S. Treasury