1.26 Ark. Code R. 51-412(a)
For purposes of corporation income tax, no gain or loss shall be recognized in an exchange of property for like property of a similar value.
If property held for productive use in a trade or business or for investment is exchanged solely for property of like kind to be held either for productive use in a trade or business or for investment, no gain or loss is recognized. Such property does not include stock in trade or other property held primarily for sale, nor stocks, bonds, notes, certificates of trust, beneficial interests, other securities or evidence of indebtedness.
The words "like kind" have reference to the nature or character of the property and not its grade or quality. Therefore, no gain or loss is realized by a taxpayer, other than a dealer, from the exchange of real estate for other real estate. However, one kind or class of property may not be exchanged for property of a different kind or class, such as real estate for personal property.
A dealer is one who regularly buys and sells securities to customers in the ordinary course of business and who treats such securities as inventory.
If common or preferred stock in a corporation is exchanged solely for the same category or type of stock in the same corporation, no gain or loss shall be recognized.
If property is transferred to a corporation by one or more parties solely in exchange for stock or securities in such corporation and, immediately after the exchange, such parties are in control of the corporation, no gain or loss shall be recognized. When more than one party is involved in the transfer to the corporation and the amount of stock and securities received by each is substantially in proportion to their interest in the property prior to the exchange, no gain or loss will be recognized.
If property is exchanged for stock and cash or other property, gain, but not loss, will be recognized to the extent of the cash or fair market value of the other property received.
1.26 Ark. Code R. 51-412(a)