FEDERAL · 26 U.S.C. · Chapter 1

Stock for stock of same corporation

Current through Pub. L. 119-102
Title 26Internal Revenue Code·Ch. 1 — NORMAL TAXES AND SURTAXES·Subch. O·Pt. III
(a)General rule No gain or loss shall be recognized if common stock in a corporation is exchanged solely for common stock in the same corporation, or if preferred stock in a corporation is exchanged solely for preferred stock in the same corporation.
(b)Nonqualified preferred stock not treated as stock For purposes of this section, nonqualified preferred stock (as defined in section 351(g)(2)) shall be treated as property other than stock.
(c)Cross references

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Related

Borden v. District of Columbia
417 A.2d 402 (District of Columbia Court of Appeals, 1980)
3 case citations

Source Credit

History

(Aug. 16, 1954, ch. 736, 68A Stat. 309; Pub. L. 105–34, title X, §1014(e)(3), Aug. 5, 1997, 111 Stat. 921.)

Editorial Notes

(1) For rules relating to recognition of gain or loss where an exchange is not solely in kind, see subsections (b) and (c) of section 1031.
(2) For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031.

Editorial Notes

Amendments
1997—Subsecs. (b), (c). Pub. L. 105–34 added subsec. (b) and redesignated former subsec. (b) as (c).

Statutory Notes and Related Subsidiaries

Effective Date of 1997 Amendment
Amendment by Pub. L. 105–34 applicable, with certain exceptions, to transactions after June 8, 1997, see section 1014(f) of Pub. L. 105–34, set out as a note under section 351 of this title.