Corporate reorganization involving the exchange of shares is a very powerful and versatile tax planning tool. The simplest and most common corporate reorganization method involves the shareholder of a corporation exchanging all of his/her shares in one class of existing shares, for shares of another authorized class. The primary focus of the share exchange is the “freezing” of the current fair market value of the shares given up by the shareholder, who is referred to as the "transferor". In ... Read More