Question: “Is the exchange going to be taxed?” Oh, yeah! Have you ever made a capital gains where you never had to pay tax on it? Maybe on a different planet but not on Earth…if you exchange them inside of a year’s purchase you’ll be somewhere in the 40% tax range. But if you hold it and you have capital gain after one year of holding it you’ll probably be in the 20% range. [NOTE: Other gurus feel it will be taxed as ordinary income not capital gains. At the appropriate time consult your tax professionals to determine the right tax for your unique circumstances.]