Sec. 1.361-1 Nonrecognition of gain or loss to corporations.

Section

provides the general rule that no gain or loss shall be recognized if a corporation, a party to a reorganization, exchanges property in pursuance of the plan of reorganization solely for stock or securities in another corporation, a party to the reorganization. This provision includes only stock and securities received in connection with a reorganization defined in section

. It also includes nonvoting stock and securities in a corporation, a party to a reorganization, received in a transaction to which section

is applicable only by reason of section

.

[Adopted by T.D. 6152, 20 FR 8875, Dec. 3, 1955; republished by T.D. 6500, 25 FR 11607, Nov. 26, 1960]