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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (48153)	2/21/1999 12:58:00 PM
From: Monty Lenard	Read Replies (1) \| Respond to of 132070

CCH-EXP, CCH Federal Tax Service §E:9.140, EXCHANGES OF STOCK FOR STOCK OF SAME CORPORATION --[In General] Exchange by stockholder of common stock for common stock or preferred stock for preferred stock of same corporation is tax free. When different classes of stock of same corporation are exchanged, or when similar classes of stock are exchanged with other consideration, gain or loss on exchange may be recognized. Basis of stock received is computed similarly to like-kind exchange. A stockholder recognizes no gain or loss on the exchange of common stock solely for common stock, or of preferred stock solely for preferred stock, in the same corporation. Gain or loss is recognized on nonreorganization exchanges involving stocks for bonds, preferred stock for common stock, common stock for preferred stock, and common stock of one corporation for common stock of another corporation. Gain or loss is also recognized if boot is transferred in an exchange that would otherwise be a nonrecognition transaction.