1031 Exchange Services

Section 1032 of the Internal Revenue Code

Title 26 — Internal Revenue Code ("IRC")

Sub Title A — Income Taxes

Chapter 1 — Normal Taxes and Surtaxes

Subchapter O — Gain or Loss on Disposition of Property

Part III — Common Non-Taxable Exchanges

Updated: Friday, July 14, 2006

Section 1032 — Exchange of Stock for Property

(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).

(b) Basis --

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




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