{"code":"RTC","codeName":"Revenue and Taxation Code","section":"24942","citation":"Rev. & Tax. Code, § 24942","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 2. OTHER TAXES [6001. - 61050.]","url":"https://blackletter.si/revenue-and-taxation-code/division-2"},{"name":"PART 11. CORPORATION TAX LAW [23001. - 25141.]","url":"https://blackletter.si/revenue-and-taxation-code/division-2/part-11"},{"name":"CHAPTER 15. Gain or Loss on Disposition of Property [24901. - 24998.]","url":"https://blackletter.si/revenue-and-taxation-code/division-2/part-11/chapter-15"},{"name":"ARTICLE 3. Nontaxable Exchanges [24941. - 24955.]","url":"https://blackletter.si/revenue-and-taxation-code/division-2/part-11/chapter-15/article-3"}],"history":"Amended by Stats. 2002, Ch. 35, Sec. 58.   Effective May 8, 2002.","effective":"2002-05-08","html":"<p>(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).</p><p>(b) For basis of property acquired by a corporation in certain exchanges for its stock, see Sections 24552 to 24554, inclusive.</p>","text":"(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.","otherVersions":[],"url":"https://blackletter.si/revenue-and-taxation-code/nontaxable-exchanges-24942","source":"California Legislative Information bulk export (pubinfo)"}