§ 24942
97 words·~1 min read·
/ca/revenue-and-taxation-code/24942A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)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 that 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 of the Internal Revenue Code, to buy or sell its stock (including treasury stock).
(b)For basis of property acquired by a corporation in certain exchanges for its stock, see Sections 24552 to 24554, inclusive.