Re: Like kind exchange

"Bill" <no@[EMAIL PROTECTED]
> writes:

> Am I correct that I cannot do a "like kind exchange" under the IRS
> regulations to exchange shares in an S&P 500 mutual fund for shares in
> an S&P 500 ETF?

I've just thought of a case where such an exchange may be
allowed - if both the fund and the ETF are just different
share classes of a single fund.  The only place I know of
where that's the case is at Vanguard.  But just as one
may swap "investor shares" for "admiral shares" if one's
account is large enough, and do so without any tax
consequences (or just as one may exchange "b" shares of
a load fund for "a" shares").  That's actually called
a "conversion" and not an "exchange".

(another time when something similar happens is when
one fund is merged into another - shares of the first
get converted into shares of the second when the assets
of the first are merged into the portfolio of the second)

Anyway, after my comment last night about the topic
having been fully addressed before I changed it, this
occurred to me.  It's probably doesn't apply to many 
folks, but it is something of an exception to the rule.


-- 
Plain Bread alone for e-mail, thanks.  The rest gets trashed.
No HTML in E-Mail! --    http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
   http://www.greenend.org.uk/rjk/2000/06/14/quoting

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators
strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond.  For all of the other tips and suggestions, see "FROM
THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on
the
Newsgroup.