26 C.F.R. § 1.1032-3 Disposition of Stock Or Stock Options In Certain Transactions Not Qualifying Under Any Other Nonrecognition Provision
Library | Code of Federal Regulations |
Edition | 2023 |
Currency | Current through December 31, 2023 |
Citation | 26 C.F.R. § 1.1032-3 |
Year | 2023 |
(a)
(b)
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(1)
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(2)
(c)
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(1) The acquiring entity acquires
stock of the issuing corporation directly or indirectly from the issuing
corporation in a transaction in which, but for this section, the basis of the
stock of the issuing corporation in the hands of the acquiring entity would be
determined, in whole or in part, with respect to the issuing corporation's
basis in the issuing corporation's stock under section 362(a) or 723 (provided
that, in the case of an indirect acquisition by the acquiring entity, the
transfers of issuing corporation stock through intermediate entities occur
immediately after one another);
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(2)
The acquiring entity immediately transfers the stock of the issuing corporation
to acquire money or other property (from a person other than an entity from
which the stock was directly or indirectly acquired);
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(3) The party receiving stock of the issuing
corporation in the exchange specified in paragraph (c)(2) of this section from
the acquiring entity does not receive a substituted basis in the stock of the
issuing corporation within the meaning of section 7701(a)(42); and
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(4) The issuing corporation stock is not
exchanged for stock of the issuing corporation.
(d)
(e)
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Example 1.
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Example 2.
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