Previous Page: Publication 544 - Sales and other Dispositions of Assets - Transfers to Spouse Next Page: Publication 544 - Sales and other Dispositions of Assets - Sales of Small Business Stock Use   to find additional instances of index items.

Taxmap/pubs/p544-007.htm#TXMP60c79b76 Rollover of Gain   From Publicly   Traded Securities

Rollover of Gain

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 the 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.

Previous Page:  Publication 544 - Sales and other Dispositions of Assets - Transfers to Spouse Next Page:  Publication 544 - Sales and other Dispositions of Assets - Sales of Small Business Stock Use     to find additional instances of index items.