Section 24942.
Cal. Revenue and Taxation Code - RTC § 24942.
in effect(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.
References
referencesCal. Revenue and Taxation Code - RTC § 24552.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026