Treasury Regulations · 26 CFR
§ 1.1081-8. Exchanges in which money or other nonexempt property is received.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Cite as 26 CFR § 1.1081-8
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted.
- Length
- 256 words · about 1 min to read
¶(a) Under section 1081(e)(1), if in any exchange (not within any of the provisions of section 1081(d)) in which stock or securities in a corporation which is a registered holding company or a majority-owned subsidiary are exchanged for stock or securities as provided for in section 1081 (a), there is received by the taxpayer money or other nonexempt property (in addition to property permitted to be received without recognition of gain), then—
¶(1) The gain, if any, to the taxpayer is to be recognized in an amount not in excess of the sum of the money and the fair market value of the other nonexempt property, but
¶(2) The loss, if any, to the taxpayer from such an exchange is not to be recognized to any extent.
¶(b) If money or other nonexempt property is received from a corporation in an exchange described in paragraph (a) of this section and if the distribution of such money or other nonexempt property by or on behalf of such corporation has the effect of the distribution of a taxable dividend, then, as provided in section 1081 (e)(2), there shall be taxed to each distributee (1) as a dividend, such an amount of the gain recognized on the exchange as is not in excess of the distributee's ratable share of the undistributed earnings and profits of the corporation accumulated after February 28, 1913, and (2) the remainder of the gain so recognized shall be taxed as a gain from the exchange of property.
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Exchanges in Obedience to S.E.C. Orders
Nearby sections
- § 1.1081-4 Exchanges of property for property by corporations.
- § 1.1081-5 Distribution solely of stock or securities.
- § 1.1081-6 Transfers within system group.
- § 1.1081-7 Sale of stock or securities received upon exchange by members of system group.
- § 1.1081-8 Exchanges in which money or other nonexempt property is received.
- § 1.1081-9 Requirements with respect to order of Securities and Exchange Commission.
- § 1.1081-10 Nonapplication of other provisions of the Internal Revenue Code of 1954.
- § 1.1081-11 Records to be kept and information to be filed with returns.
- § 1.1082-1 Basis for determining gain or loss.