I.R.C. § 1036(a) 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.
I.R.C. § 1036(b) 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.
I.R.C. § 1036(c) Cross References
I.R.C. § 1036(c)(1) —
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.
I.R.C. § 1036(c)(2) —
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. 736, 68A Stat. 309; Pub. L. 105-34, title X, Sec. 1014(e)(3), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
AMENDMENTS
1997--Subsecs. (b) and (c). Pub. L. 105-34, Sec. 1014(e)(3) redesignated subsec. (b) as subsec. (c), and inserted a new subsec. (b) after subsec.
(a).
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 1014(f) of Pub. L. 105-34 provided that:
“(1) In general.--The amendments made by this section shall apply to transactions
after June 8, 1997.
“(2) Transition rule.--The amendments made by this section shall not apply to any
transaction after June 8, 1997, if such transaction is--
“(A) made pursuant to a written agreement which was binding on such date and at all
times thereafter,
“(B) described in a ruling request submitted to the Internal Revenue Service on or
before such date, or
“(C) described on or before such date in a public announcement or in a filing with
the Securities and Exchange Commission required solely by reason of the transaction.”
