[Code of Federal Regulations]
[Title 26, Volume 4]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.358-4]

[Page 242]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.358-4  Exceptions.

    (a) Plan of reorganization adopted after October 22, 1968. In the 
case of a plan of reorganization adopted after October 22, 1968, section 
358 does not apply in determining the basis of property acquired by a 
corporation in connection with such reorganization by the exchange of 
its stock or securities (or by the exchange of stock or securities of a 
corporation which is in control of the acquiring corporation) as the 
consideration in whole or in part for the transfer of the property to 
it. See section 362 and the regulations pertaining to that section for 
rules relating to basis to corporations of property acquired in such 
cases.
    (b) Plan of reorganization adopted before October 23, 1968. In the 
case of a plan of reorganization adopted before October 23, 1968, 
section 358 does not apply in determining the basis of property acquired 
by a corporation in connection with such reorganization by the issuance 
of stock or securities of such corporation (or by the issuance of stock 
or securities of another corporation which is in control of such 
corporation) as the consideration in whole or in part for the transfer 
of the property to it. The term issuance of stock or securities includes 
any transfer of stock or securities, including stock or securities which 
were purchased or were acquired as a contribution to capital. See 
section 362 and the regulations pertaining to that section for rules 
relating to basis to corporations of property acquired in such cases.

[T.D. 7422, 41 FR 26569, June 28, 1976]