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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120820  
Subject: Re: Avoiding Capital Gains Date: 2/1/1998 10:03 AM
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[[If I open a self-directed IRA, would I be able to contribute $2000 in the company stock to the
IRA, sell the stock within the self directed IRA so that I can invest in other stocks while avoiding
the capital gains tax?]]

Sorry, but IRA CONTRIBUTIONS must be funded with cash. You can't make a contribution of stock to an IRA account.

You can make an IRA rollover with stock, but the initial contributions must be made in cash.

TMF Taxes
Roy

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area (http://www.fool.com/school.htm) and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area (http://www.fool.com/school/taxes/taxes.htm). Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (http://www.irs.ustreas.gov)
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