A client holds a concentrated position in a single stock with a very low cost basis. Which tax-efficient strategy allows diversification without immediately triggering capital gains?
-
A
Sell all shares and reinvest in an index fund
-
B
Use an exchange fund to swap shares for diversified interests
-
C
Donate shares to a DAF and replace with cash investments
-
D
Elect Section 475 mark-to-market treatment