§ 15. Exchange of property.--Upon the sale or exchange of property the\nentire amount of the gain or loss, determined under section fourteen,\nshall be recognized, except as hereinafter provided in this section:\n 1. No gain or loss shall be recognized if common stock in a\ncorporation is exchanged solely for common stock in the same\ncorporation, or if preferred stock in a corporation is exchanged solely\nfor preferred stock in the same corporation;\n 2. No gain or loss shall be recognized if stock or securities in a\ncorporation a party to a reorganization are, in pursuance of the plan of\nreorganization, exchanged solely for stock or securities in such\ncorporation or in another corporation a party to the reorganization;\n 3. No gain or loss shall be recognized if a taxpayer, a party to a\nreorganization, exchanges property, in pursuance of the plan of\nreorganization, solely for stock or securities in another corporation a\nparty to the reorganization; and\n 4. No gain or loss shall be recognized if property is transferred to a\ncorporation by a taxpayer solely in exchange for stock or securities in\nsuch corporation, and immediately after the exchange such taxpayer is in\ncontrol of the corporation; but in the case of an exchange by a taxpayer\nand one or more other corporations or persons this subdivision shall\napply only if the amount of the stock and securities received by each is\nsubstantially in proportion to its interest in the property prior to the\nexchange.\n 5. If property (as a result of its destruction in whole or in part,\ntheft or seizure, or an exercise of the power of requisition or\ncondemnation, or the threat of imminence thereof) is compulsorily or\ninvoluntarily converted into property similar or related in service or\nuse to the property so converted, or into money which is forthwith in\ngood faith, under regulations prescribed by the director of finance,\nexpended in the acquisition of other property similar or related in\nservice or use to the property so converted, or in the acquisition of\ncontrol of a corporation owning such other property, or in the\nestablishment of a replacement fund, no gain or loss shall be\nrecognized. If any part of the money is not so expended, the gain, if\nany, shall be recognized, but in an amount not in excess of the money\nwhich is not so expended.\n 6. If there is distributed, in pursuance of a plan of reorganization,\nto a taxpayer shareholder in a corporation a party to the\nreorganization, stock or securities in such corporation or in another\ncorporation a party to the reorganization, without the surrender by such\ntaxpayer shareholder of stock or securities in such a corporation, no\ngain to the distributee from the receipt of such stock or securities\nshall be recognized.\n 7. If an exchange would be within the provisions of subdivision one,\ntwo, or four of this section if it were not for the fact that the\nproperty received in exchange consists not only of property permitted by\nsuch subdivision to be received without the recognition of gain, but\nalso of other property or money, then the gain, if any, to the recipient\nshall be recognized, but in an amount not in excess of the sum of such\nmoney and the fair market value of such other property.\n 8. If an exchange would be within the provisions of subdivision three\nof this section if it were not for the fact that the property received\nin exchange consists not only of stock or securities permitted by such\nsubdivision to be received without the recognition of gain, but also of\nother property or money, then--\n (a) If the taxpayer receiving such other property or money distributes\nit in pursuance of the plan of reorganization, no gain to the taxpayer\nshall be recognized from the exchange, but\n (b) If the taxpayer receiving such other property or money does not\ndistribute it in pursuance of the plan of reorganization, the gain, if\nany, to the taxpayer shall be recognized, but in an amount n
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