Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-412 - GAIN OR LOSS - EXCHANGE OF PROPERTY
Rule 3.26-51-412(c) - Exchange of Property in a Reorganization
Pursuant to a reorganization plan, if stock or securities in a corporation are exchanged for stock or securities in the same corporation or in another party to the reorganization including other property or money as well, any gain to the recipient shall be recognized in an amount not to exceed the sum of the money and the fair market value of the other property. No loss from such an exchange will be recognized.
Pursuant to a reorganization plan, if property is exchanged by a party to the reorganization for stock or securities in another party to the reorganization including other property or money as well, if the other property or money received by the corporation is distributed by it pursuant to the reorganization plan, no gain to the corporation will be recognized. If the other property or money received by the corporation is not distributed by it pursuant to the plan of reorganization, any gain to the corporation from the exchange will be recognized in an amount not to exceed the sum of the money and the fair market value of the other property so received. In either case, no loss from the exchange will be recognized.