United States Code (Last Updated: May 24, 2014) |
Title 26. INTERNAL REVENUE CODE |
SubTitle A. Income Taxes |
Chapter 1. NORMAL TAXES AND SURTAXES |
SubChapter O. Gain or Loss on Disposition of Property |
Part III. COMMON NONTAXABLE EXCHANGES |
§ 1032. Exchange of stock for property
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(a) Nonrecognition of gain or loss 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).
(b) Basis For basis of property acquired by a corporation in certain exchanges for its stock, see section 362.
Amendments
2000—Subsec. (a). Pub. L. 106–554 inserted “, or with respect to a securities futures contract (as defined in section 1234B),” after “an option” in second sentence.
1984—Subsec. (a). Pub. L. 98–369 inserted provision that no gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option to buy or sell its stock (including treasury stock).
Effective Date Of Amendment
Pub. L. 106–554, § 1(a)(7) [title IV, § 401(j)],
Pub. L. 98–369, div. A, title I, § 57(b),