26Title 26The US tax code, read & explained

26 U.S.C. § 1036

§ 1036. Stock for stock of same corporation

132 words · amended 1 times · cited by 3 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Part of the code since 1954. Last changed August 5, 1997 by the Taxpayer Relief Act of 1997.

Every change, newest first (2)
  1. August 5, 1997Taxpayer Relief Act of 1997
  2. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) General rule
  2. (b) Nonqualified preferred stock not treated as stock
  3. (c) Cross references
(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
(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.