Section 32 Recognition of Gain or Loss

• Library: Bus Trans 2005

Under I.R.C. § 354(a)(1), no gain or loss is recognized “if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization.” But if the principal amount of any securities received exceeds the principal amount of any securities surrendered, or any securities are received and no securities surrendered, the nonrecognition provisions of I.R.C. §...