# § 1036. Stock for stock of same corporation
**(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.
**(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.
**(c)** **Cross references**
**(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.
**(2)** For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031.
---
**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 309; Pub. L. 105–34, title X, § 1014(e)(3), Aug. 5, 1997, 111 Stat. 921.)
## Editorial Notes
### Amendments
1997—Subsecs. (b), (c). added subsec. (b) and redesignated former subsec. (b) as (c).
## Statutory Notes and Related Subsidiaries
### Effective Date of 1997 Amendment
Amendment by applicable, with certain exceptions, to transactions after , see , set out as a note under .