[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: 26CFR1.361-1]

[Page 246]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.361-1  Nonrecognition of gain or loss to corporations.

    Section 361 provides the general rule that no gain or loss shall be 
recognized if a corporation, a party to a reorganization, exchanges 
property in pursuance of the plan of reorganization solely for stock or 
securities in another corporation, a party to the reorganization. This 
provision includes only stock and securities received in connection with 
a reorganization defined in section 368(a). It also includes nonvoting 
stock and securities in a corporation, a party to a reorganization, 
received in a transaction to which section 368(a)(1)(C) is applicable 
only by reason of section 368(a)(2)(B).