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) ofsection
(2)For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) ofsection
1997—Subsecs. (b), (c). Pub. L. 105–34added subsec. (b) and redesignated former subsec. (b) as (c).
Effective Date of 1997 Amendment
Amendment by Pub. L. 105–34applicable, with certain exceptions, to transactions after June 8, 1997, see section 1014(f) ofPub. L. 105–34, set out as a note under section
351 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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