In corporate reorganizations,if an acquiring corporation using property other than stock as consideration,it may recognize gains but not losses on the transaction.

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When an acquiring corporation uses property other than stock as consideration in a corporate reorganization, it may recognize gains but not losses on the transaction. This is due to a provision in the tax code known as the "nonrecognition rule," which allows for the deferral of tax liability on gains from such transactions. This rule does not apply to losses, however, which are generally recognized immediately.

In Corporate Reorganizations,if an Acquiring Corporation Using Property Other Than