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Sec. 1032 Exchange of stock for property

  • Internal Revenue Code of 1986
  • Chapter 1 -- Normal Taxes and Surtaxes
  • Subchapter O -- Gain or Loss on Disposition of Property
  • Part III -- Common nontaxable exchanges

(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.

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