IRS Tax Forms  
Publication 544 2001 Tax Year

Rollover of Gain from
Publicly Traded Securities

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 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.

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