The tax basis of the stock and securities received by a shareholder pursuant to a tax-free reorganization generally is the same as the basis of the stock and securities surrendered.

Question

Quizplus · Accepted Answer

The tax basis of the stock and securities received in a tax-free reorganization is generally the same as the basis of the stock and securities surrendered, as stated in Section 368(a)(1)(B) of the Internal Revenue Code.

The Tax Basis of the Stock and Securities Received by a Shareholder