Section 24942 - Receipt of money or other property in exchange for stock; lapse or acquisition of option to buy or sell stock(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.Ca. Rev. and Tax. Code § 24942
Amended by Stats 2002 ch 34 (SB 657),s 58, eff. 5/8/2002.Amended by Stats 2002 ch 35 (AB 1122),s 58, eff. 5/8/2002. See Stats 2002 ch 35 (AB 1122), s 66.