stock

(1)For purposes of this subchapter, the term “stock” means stock which meets the requirements of subparagraph (A), (B), or (C) of this paragraph. (A)Stock (other than common stock issued with respect to common stock) which was distributed to the shareholder selling or otherwise disposing of such stock if, by reason of section 305(a), any part of such distribution was not includible in the gross income of the shareholder. (B)Stock which is not common stock and— (i)which was received, by the shareholder selling or otherwise disposing of such stock, in pursuance of a plan of reorganization (within the meaning of), or in a distribution or exchange to which section 355 (or so much of section 356 as relates to section 355) applied, and (ii)with respect to the receipt of which gain or loss to the shareholder was to any extent not recognized by reason of part III, but only to the extent that either the effect of the transaction was substantially the same as the receipt of a stock dividend, or the stock was received in exchange forstock. (C)Except as otherwise provided in subparagraph (B), stock the basis of which (in the hands of the shareholder selling or otherwise disposing of such stock) is determined by reference to the basis (in the hands of such shareholder or any other person) ofstock.

Source

26 USC § 306(c)(1)


Scoping language

For purposes of this subchapter
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