26 U.S.C. § 1032 | Exchange of stock for property

(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.

Aug. 16, 1954, ch. 736 68A Stat. 303 Pub. L. 98–369, div. A, title I, § 57(a)July 18, 198498 Stat. 574 Pub. L. 106–554, § 1(a)(7) [title IV, § 401(c)]Dec. 21, 2000114 Stat. 2763(, ; , , ; , , , 2763A–649.)

Editorial Notes

Amendments

Pub. L. 106–5542000—Subsec. (a). inserted “, or with respect to a securities futures contract (as defined in section 1234B),” after “an option” in second sentence.

Pub. L. 98–3691984—Subsec. (a). 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).

Statutory Notes and Related Subsidiaries

Effective Date of 2000 Amendment

Pub. L. 106–554, § 1(a)(7) [title IV, § 401(j)]Dec. 21, 2000114 Stat. 2763

section 1234B of this titleDec. 21, 2000“The amendments made by this section [enacting and amending this section and sections 1091, 1092, 1223, 1233, 1234A, 1256 and 7701 of this title] shall take effect on the date of the enactment of this Act [].”

, , , 2763A–651, provided that:

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title I, § 57(b)July 18, 198498 Stat. 574

July 18, 1984“The amendment made by subsection (a) [amending this section] shall apply to options acquired or lapsed after the date of the enactment of this Act [] in taxable years ending after such date.”

, , 1984, , provided that: