# 26 U.S.C. § 1032: Exchange of stock for property

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s1032>. Cite pinpoints as 26 U.S.C. § 1032(a)(1).

## § 1032(a) Nonrecognition of gain or loss

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).

## § 1032(b) Basis

For basis of property acquired by a corporation in certain exchanges for its stock, see section 362.

## Regulations

- [Treas. Reg. § 1.1032-1](/26/reg/1.1032-1.md): Disposition by a corporation of its own capital stock. (interprets § 1032)
- [Treas. Reg. § 1.1032-2](/26/reg/1.1032-2.md): Disposition by a corporation of stock of a controlling corporation in certain triangular reorganizations. (interprets § 1032)
- [Treas. Reg. § 1.1032-3](/26/reg/1.1032-3.md): Disposition of stock or stock options in certain transactions not qualifying under any other nonrecognition provision. (interprets § 1032)

## Final rules

- [65 FR 31073](https://www.federalregister.gov/documents/2000/05/16/00-11900/guidance-under-section-1032-relating-to-the-treatment-of-a-disposition-by-an-acquiring-entity-of-the) (2000): Guidance Under Section 1032 Relating to the Treatment of a Disposition by An Acquiring Entity of the Stock of a Corporation in a Taxable Transaction
- [60 FR 66077](https://www.federalregister.gov/documents/1995/12/21/95-30875/controlling-corporations-basis-adjustment-in-its-controlled-corporations-stock-following-a) (1995): Controlling corporation's basis adjustment in its controlled corporation's stock following a triangular reorganization

## Leading cases

- [Duncan Industries, Inc. v. Commissioner, 73 T.C. 266 (1979)](https://www.courtlistener.com/opinion/4705083/duncan-industries-inc-etc-v-commissioner/)
- [Affiliated Government Employees' Distributing Co. v. Commissioner, 322 F.2d 872 (9th Cir. 1963)](https://www.courtlistener.com/opinion/261855/affiliated-government-employees-distributing-company-a-corporation-v/)
- [H. B. Zachry Co. v. Commissioner, 49 T.C. 73 (1967)](https://www.courtlistener.com/opinion/4702274/h-b-zachry-co-v-commissioner/)

## Connections

Cites: § 362 Basis to corporations; § 1234B Gains or losses from securities futures contracts

Cited by: none

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 303
- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 574
- 2000-12-21: [Pub. L. 106-554](/26/act/106-554.md), 114 Stat. 2763