# 26 U.S.C. § 1036: Stock for stock of same corporation Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 1036(a)(1). ## § 1036(a) General rule 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. ## § 1036(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. ## § 1036(c) Cross references **§ 1036(c)(1)** For rules relating to recognition of gain or loss where an exchange is not solely in kind, see subsections (b) and (c) of section 1031. **§ 1036(c)(2)** For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031. ## Regulations - [Treas. Reg. § 1.1036-1](/26/reg/1.1036-1.md): Stock for stock of the same corporation. (interprets § 1036) ## Final rules - [65 FR 58650](https://www.federalregister.gov/documents/2000/10/02/00-25258/treatment-of-nonqualified-preferred-stock-and-other-preferred-stock-in-certain-exchanges-and) (2000): Treatment of Nonqualified Preferred Stock and Other Preferred Stock in Certain Exchanges and Distributions ## Leading cases - [Sherwood Properties v. Commissioner, 89 T.C. 651 (1987)](https://www.courtlistener.com/opinion/4706514/sherwood-properties-v-commissioner/) ## Connections Cites: § 351 Transfer to corporation controlled by transferor; § 1031 Exchange of real property held for productive use or investment Cited by: § 83 Property transferred in connection with performance of services; § 424 Definitions and special rules; § 1031 Exchange of real property held for productive use or investment Derived from: 1939 § 112(b)(2) ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 309 - 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 921