26 USC § 1032 - Exchange of stock for property

---
identifier: "/us/usc/t26/s1032"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1032 - Exchange of stock for property"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1032"
section_name: "Exchange of stock for property"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "O"
subchapter_name: "Gain or Loss on Disposition of Property"
part_number: "III"
part_name: "COMMON NONTAXABLE EXCHANGES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(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.)"
---


# § 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.

---

**Source Credit**: (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.)

## Editorial Notes

### Amendments

2000—Subsec. (a).  inserted “, or with respect to a securities futures contract (as defined in section 1234B),” after “an option” in second sentence.

1984—Subsec. (a).  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

> “The amendments made by this section [enacting
> 
> 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 [
> 
> ].”

, , , 2763A–651, provided that:

### Effective Date of 1984 Amendment

> “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 [
> 
> ] in taxable years ending after such date.”

, , 1984, , provided that: