Page:United States Statutes at Large Volume 42 Part 1.djvu/258

 230 SIXTY—SEVENTH CONGRESS. Sess. I. Ch. 136. 1921. I, *%,5**- me (3) If the amount realized therefor is more than such basis but not Mer¤1=1.1913.reeei)v¤d- more than its fair market price or value as of March 1, 1913, or less than such basis but not less than such fair market price or value, no gain shall be included in and no loss deducted from the gross income. Exchanges or pi-oe (G) For the PUEPOSBS Of this title, on an exchange of property, real, °'Q;,,,,, ,,,p,,,,,,,,,,,, personal or mixe, for any other such prcoperty, no gain or loss shall receenieee e recogmzed unless the property receiv in exchange has a readily realizab e market value; ut even if the property received in exchange base; readily realizable market value, no gain or loss shall be recogmz _- mi; fef ¤¤¤¤¤ P'°P‘ (1) Whenpany such pro erty held for investment, or for productive r·>}:,p.1seu. use in trade or business (iiot including stock—in—trade or other property held primarily for sale), is exchanged for property of a like kind or use; W¤¤¤ =*<¤=¤’· •¤=··.¤*j (2) When in the reorganization of one or more co rations a person m 8 receives in place of any stock or securities ownedpliy him, stock or securities in a corporation a party to or resulting from such reorgani- zation. The word "reorghamzation," as used in this paragraph, includes a merger or conso `dation (including the acntuisition y one corporation o at least a majority of the voting] stoc and at least a mayority of the total number of shares of all o er classes of stock of another corporation, or of substantially all the properties of another corporation), recapitalization, or mere change m identity, form, or place of organization of a corporation, (however effected); or ¤{{f_*{°tg¤‘*f,g!c*{"°t;•{{’_•;_ (3) When (A) a person transfers anly property, real, persona] or med. mixed, to a corporation, and immediate y after the transfer is in control of such corporation, or (B) two or more persons transfer any such propert to a corporation, and immediate y after the transfer are in control, of such corporation, and the amounts of stock, securities, or both, received by such persons are in substantial] the same roportion as their interests in the property before such transfer. ger the purposes of this paragraph, a person is, or two or more per— sons are, "in control" of a corporation when owning at least 80 per centum of the voting stock and at least 80 per centum of the total number of shares of all other classes of stock of the corporation. mmhgggagggggljl (d) (1) Where property is exchanged_ for other property and no exchanged. gain or loss is recogpized under the provisions of su_ division (c), the property received s all, for the purposes of this section, be treated as Exceptions. taking the {place of the property exchanged therefor, except as pro- Zum. ds H vitgggi Rhein divisiont(e); ul ru _ I t l d _ mi¤yo$¢?pvl`;4i?szé1. cash or its eqiiiviilenii in thepmanner described in pa`Yra.gl;·aph (12) of subdivision (a) of section 214 and paragraph (14) of su division (a) of section 234, and the taxpayer procee s in good faith to expend or set aside the proceeds of such conversion rn the form and in the manner therein provided, the property accauired shaH, for the purpose of this section, be treated as taking the p ace of a like proportion of the property converted; _ cu‘Q,‘g,,;f°’“¤¤° °* 5** (3) Where no deduction is allowed for a loss or a art thereof P~¤.r>r>-240,255. under the provisions of paragraph (5) of subdivision (ag of section 214 and paragraph (4) o subdivision (a) of section 234, that art of the roperty acquired with relation to which such loss is disglowed shalffor the purposes of this section be treated as taking the place of the pgloperty sold or disposed of. _ _ I{ 3gd¤¤_ game and (e) · ere ggoperty is exchanged for other property which has no Z!}`$:».w.°m ‘”°p°"y readily realiza le market value, together with money or other propm'§,’;}°" °“ °"°°“ °‘ erty which has a readily realizable market value, then the money or Pos¢,p.1500. the fair market value of the property havin¤· such readily realizable market value received in exchange shall be applied against and reduce the basis, provided in this section, of the property exchanged,
 * °°*;fv Q ¤*¤*¤¤· 2 ere ro er is com so y or mvo un arr converte mto