In some cases, individuals may choose to trade their stock for other stock owned by a corporation or an individual. When this occurs, the individual may or may not be taxed on the exchange.
If the individual is acting as an individual taxpayer and not as a corporate employee, then the exchange will likely be taxable. However, there are a few exceptions. For instance, if the stock is exchanged for like stock of the same class and character, then the exchange will not be taxable, and any tax effects will be deferred.
If you or anyone you know has questions about their stock exchanges, contact the Des Moines business litigation attorneys of LaMarca Law Group, P.C., at (515) 705-0233.