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.
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.
Cross references
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.
For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031.
Aug. 16, 1954, ch. 73668A Stat. 309Pub. L. 105–34, title X, § 1014(e)(3)111 Stat. 921(, ; , , .)
Editorial Notes
Amendments
Pub. L. 105–341997—Subsecs. (b), (c). added subsec. (b) and redesignated former subsec. (b) as (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Pub. L. 105–34section 1014(f) of Pub. L. 105–34section 351 of this titleAmendment by applicable, with certain exceptions, to transactions after , see , set out as a note under .