Section 35 Creation of I.R.C. 306 Stock

• Library: Bus Trans 2005

I.R.C. § 306 stock may be created in a recapitalization. For example, preferred stock issued in a recapitalization to a holder of common stock may constitute I.R.C. § 306 stock. See I.R.C. § 306(c)(1)(B). See, e.g., Rev. Rul. 75-236, 1975-1 C.B. 106; Rev. Rul. 79-163, 1979-1 C.B. 131; Rev. Rul. 82-191, 1982-2 C.B. 78. If I.R.C. §...