Redemption of stock [Internal Revenue] Law and Legal Definition

According to 26 USCS § 317 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes and Surtaxes; Subchapter C. Corporate Distributions and Adjustments; Part I. Distributions by Corporations; Subpart C. Definitions; Constructive Ownership of Stock], stock shall be treated as redeemed by a corporation if the corporation acquires its stock from a shareholder in exchange for property, whether or not the stock so acquired is cancelled, retired, or held as treasury stock.