351(a) exchange

I held units in a holding company LLC for over a year. The company formed a new holding company and I did an equal value exchange of units from the old LLC to the new LLC. Does my holding period for capital gains consideration still go back to when I originally acquired the shares? If the new LLC has a sale in less than one year, will I still get long term capital gains treatment on any value above the exchange value?

posted

The holding period for the interest received should be the same as for that transferred. BUT note that LLCs can't participate in tax-free re-orgs so I don't know what's going on unless there was an election made.