
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1036]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
          Subchapter O--Gain or Loss on Disposition of Property
 
                  PART III--COMMON NONTAXABLE EXCHANGES
 
Sec. 1036. Stock for stock of same corporation


(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.

(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.

(c) Cross references

            (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.
            (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. 921.)


                               Amendments

    1997--Subsecs. (b), (c). Pub. L. 105-34 added subsec. (b) and 
redesignated former subsec. (b) as (c).


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 applicable, with certain exceptions, to 
transactions after June 8, 1997, see section 1014(f) of Pub. L. 105-34, 
set out as a note under section 351 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 83, 424, 1031 of this title.
