26 U.S.C. § 317 — Other definitions

This section defines two words used elsewhere in this part of the tax code. (a) Property. For this part, "property" means money, securities, and any other kind of property. But there's one exception: it does not include stock in the corporation that is making the distribution, and it does not include rights to acquire that stock. (b) Redemption of stock. A corporation is treated as having "redeemed" stock whenever it acquires its own stock from a shareholder in exchange for property. This is true whether or not the corporation actually cancels the stock, retires it, or just holds it as treasury stock.