What securities are considered Qualified Replacement Property?
Qualified replacement Property includes stock and bonds of most domestic operating companies which qualify under the rules of Section 1042 of the Code. It does not include treasury bonds, treasury bills, municipal bonds or mutual funds. The selling shareholder must sign an affidavit which identifies the Qualified Replacement Property, and file a copy with the IRS. An experienced adviser familiar with the rollover rules should be consulted to make sure that replacement securities satisfy the requirements for Qualified Replacement Property.
Qualified Replacement Property includes stock and bonds of most domestic operating companies which qualify under the rules of Section 1042 of the Code. It does not include treasury bonds, treasury bills, municipal bonds or mutual funds. The selling shareholder must sign an affidavit which identifies the Qualified Replacement Property, and file a copy with the IRS. An experienced advisor familiar with the rollover rules should be consulted to make sure that replacement securities satisfy the requirements for Qualified Replacement Property. Return to the top of the page.
