Revenue and Taxation Code section 24942

(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.

Source: Section 24942, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=RTC§ionNum=24942.­ (accessed Apr. 24, 2025).

Last Updated

Apr. 24, 2025

§ 24942’s source at ca​.gov