CHAPTER 529

An Act to amend the Code of Virginia by adding a new section numbered
58-86.1:4, relating to gain or loss, for income tax purposes, on an ex-
change of stock for stock of the same corporation. rH 566]

Approved March 31, 1964

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a new section num-
bered 58-86.1:4, as follows:

§ 58-86.1:4. Exchange of stock for stock of same corporation.—No
gain or loss shall be recognized if common stock in a corporation is ex-
changed solely for common stock in the same corporation, or if preferred
stock in a corporation is exchanged solely for preferred stock in the same
corporation. The basis of the stock received by each party to an exchange
to which this section is applicable shall be the same as that of the stock
he transferred in the exchange.

This section shall apply with respect to taxable years beginning after
December thirty-first, nineteen hundred and sixty-three.