Rev. Rul. 69-20
Rev. Rul. 69-20; 1969-1 C.B. 202
- Cross-Reference
26 CFR 1.1036-1: Stock for stock of the same corporation.
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position set forth in O.D. 1008, C.B. 5, 56. The question presented is whether an exchange between individual shareholders of common stock for preferred stock of the same corporation is within the provisions of section 1036 of the Internal Revenue Code of 1954, so that no gain or loss will be recognized.
It is held that gain or loss is recognized to each shareholder on the exchange measured by the difference between the cost or other basis of the stock surrendered and the fair market value of the stock received.
O.D. 1008 is superseded, since the position set forth therein is restated under current law in this Revenue Ruling.
1 Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.
- Cross-Reference
26 CFR 1.1036-1: Stock for stock of the same corporation.
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available