Internal Revenue Code · 26 U.S.C.
§ 1032. Exchange of stock for property
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1032
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- July 18, 1984 by Pub. L. 98–369
- Last amended
- December 21, 2000 by Pub. L. 106–554
- Amendments
- 1 dated changes in the source credit
- Length
- 2 subsections · 133 words · about 1 min to read
- Cross-references
- cites 2; cited by 0 Code sections and 14 other regulations
- Regulations
- 3 issued under this section
No gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock (including treasury stock) of such corporation. No gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option, or with respect to a securities futures contract (as defined in section 1234B), to buy or sell its stock (including treasury stock).
For basis of property acquired by a corporation in certain exchanges for its stock, see section 362.
(Aug. 16, 1954, ch. 736, 68A Stat. 303; Pub. L. 98–369, div. A, title I, § 57(a), July 18, 1984, 98 Stat. 574; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–649.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 1032
- § 1.1032-1 Disposition by a corporation of its own capital stock.
- § 1.1032-2 Disposition by a corporation of stock of a controlling corporation in certain triangular reorganizations.
- § 1.1032-3 Disposition of stock or stock options in certain transactions not qualifying under any other nonrecognition provision.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
Cited in 14 regulations not issued under it
- § 1.61-6 Gains derived from dealings in property.
- § 1.83-6 Deduction by employer.
- § 1.382-1T Table of contents (temporary).
- § 1.382-2T Definition of ownership change under section 382, as amended by the Tax Reform Act of 1986 (temporary).
- § 1.385-3 Certain distributions of debt instruments and similar transactions.
- § 1.404(a)-12 Contributions of an employer under a plan that does not meet the requirements of section 401(a); application of section 404(a)(5).
- § 1.475(c)-2 Definitions—security.
- § 1.684-3 Exceptions to general rule of gain recognition.
- § 1.705-1 Determination of basis of partner's interest.
- § 1.705-2 Basis adjustments coordinating sections 705 and 1032.
- § 1.861-20 Allocation and apportionment of foreign income taxes.
- § 1.956-1 Shareholder's pro rata share of the average of the amounts of United States property held by a controlled foreign corporation.
- § 1.1232-3 Gain upon sale or exchange of obligations issued at a discount after December 31, 1954.
- § 1.1502-13 Intercompany transactions.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the 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
Nearby sections
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2000—Subsec. (a). Pub. L. 106–554 inserted “, or with respect to a securities futures contract (as defined in section 1234B),” after “an option” in second sentence.
1984—Subsec. (a). Pub. L. 98–369 inserted provision that no gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option to buy or sell its stock (including treasury stock).
Statutory Notes and Related Subsidiaries
Effective Date of 2000 Amendment
Pub. L. 106–554, § 1(a)(7) [title IV, § 401(j)], Dec. 21, 2000, 114 Stat. 2763, 2763A–651, provided that: “The amendments made by this section [enacting section 1234B of this title and amending this section and sections 1091, 1092, 1223, 1233, 1234A, 1256 and 7701 of this title] shall take effect on the date of the enactment of this Act [Dec. 21, 2000].”
Effective Date of 1984 Amendment
Pub. L. 98–369, div. A, title I, § 57(b), July 18, 1984, 1984, 98 Stat. 574, provided that: “The amendment made by subsection (a) [amending this section] shall apply to options acquired or lapsed after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.”