26 U.S.C. § 1032 — Exchange of stock for property
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 95 words · no verdicts yet
A corporation generally recognizes no gain or loss when it receives money or other property in exchange for its stock. A separate provision governs the basis of property acquired in such exchanges.
(a) A corporation* recognizes no gain or loss when it receives money or other property in exchange for its stock*, including treasury stock. It also recognizes no gain or loss when an option to buy or sell its stock lapses or is acquired, or with respect to a securities futures contract defined in section 1234B involving its stock.
(b) Section 362 provides the basis rules for property a corporation acquires in certain exchanges for its stock.
No gain or loss shall be recognized to a corporation* on the receipt of money or other property in exchange for stock* (including treasury stock) of such corporation. No gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option, or with respect to a securities futures contract (as defined in section 1234B), to buy or sell its stock (including treasury stock).
For basis of property acquired by a corporation in certain exchanges for its stock, see section 362.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 303; Pub. L. 98–369, div. A, title I, § 57(a), July 18, 1984, 98 Stat. 574; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–649.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1984Amended · Pub. L. 98-369 · 98 Stat. 574
- 2000Amended · Pub. L. 106-554 · 114 Stat. 2763, 2763
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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