Publication 544 |
2001 Tax Year |
Rollover of Gain from Publicly Traded Securities
You can choose to roll over a capital gain from the sale of
publicly traded securities (securities traded on an established
securities market) into a specialized small business investment
company (SSBIC). If you make this choice, the gain from the sale is
recognized only to the extent the amount realized is more than the
cost of SSBIC common stock or partnership interest bought during the
60-day period beginning on the date of the sale. You must reduce your
basis in the SSBIC stock or partnership interest by the gain not
recognized.
The gain that can be rolled over during any tax year is limited.
For individuals, the limit is the lesser of the following amounts.
- $50,000 ($25,000 for married individuals filing
separately).
- $500,000 ($250,000 for married individuals filing
separately) minus the gain rolled over in all earlier tax
years.
For more information, see chapter 4 of Publication 550.
For C corporations, the limit is the lesser of the following
amounts.
- $250,000.
- $1 million minus the gain rolled over in all earlier tax
years.
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