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Internal Revenue Code, § 1032. Exchange Of Stock For Property

I.R.C. § 1032(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).
I.R.C. § 1032(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; July 18, 1984, Pub. L. 98-369, div. A, title I, 57(a), 98 Stat. 574; Dec. 21, 2000, Pub. L. 106-554, Sec. 401, 114 Stat. 2763.)
BACKGROUND NOTES
AMENDMENTS
2000--Subsec. (a). Pub. L. 106-554 amended the second sentence by adding “, or with respect to a securities futures contract (as defined in section 1234B),” after “an option”.
1984--Subsec. (a). Pub. L. 98-369 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).
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Sec. 401(c) of Pub. L. 106-554 effective on the date of the enactment of this Act [Enactment Date: Dec. 21, 2000].
EFFECTIVE DATE OF 1984 AMENDMENT
Section 57(b) of Pub. L. 98-369 provided that: “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 [July 18, 1984] in taxable years ending after such date.”