Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 11959 

excluded from gross income provided P 

succeeds to S’s intercompany item; P and S 

are a single entity; P’s basis in the T stock 

that reflects the $60 intercompany gain taken 

into account is eliminated without the 

recognition of gain or loss (and this 

eliminated basis is not further reflected in 

any successor asset); the group has not 

derived any Federal income tax benefit from 

the basis in the T stock and will not derive 

any Federal income tax benefit from a 

redetermination of this portion of the gain; 

and the effects of the intercompany 

transaction have not previously been 

reflected, directly or indirectly, on the P 

group’s consolidated return. (See paragraph 

(c)(6)(ii)(C) of this section.) The 

intercompany transaction with respect to the 

T stock resulted in an increase in the basis 

of the T stock, and this increase in the basis 

of the T stock prevented P from holding the 

T stock with a $10 excess loss account (as a 

result of the Year 7 distribution) at the time 

of the section 355 distribution. Accordingly, 

the group derived a Federal income tax 

benefit from the intercompany transaction to 

the extent of $10 and, under paragraph 

(c)(6)(ii)(C) of this section, only $50 of the 

$60 intercompany gain that P takes into 

account is redetermined to be excluded from 

gross income. 

(c) Application of section 355(e). If it were 

determined that section 355(e) applied to P’s 

distribution of the T stock, P would recognize 

$0 of gain and derive a Federal income tax 

benefit to the extent of the full $60 increase 

in the basis of the T stock. Therefore, no 

portion of P’s intercompany gain would be 

redetermined to be excluded from gross 

income under paragraph (c)(6)(ii)(C) of this 

section. 

(iii) Effective/applicability date—(A) 

In general. Paragraphs (c)(6)(ii)(C), 

(c)(6)(ii)(D), and (c)(7)(ii), Examples 16 

and 17 of this section apply with respect 

to items taken into account on or after 

March 4, 2011. 

(B) Prior periods. For items taken into 

account on or after March 7, 2008, and 

before March 4, 2011, see § 1.1502– 

13T(c)(6)(ii)(C) and (f)(7), Examples 7 

and 8 as contained in 26 CFR part 1 in 

effect on April 1, 2009. For items taken 

into account before March 7, 2008, see 

§ 1.1502–13 as contained in 26 CFR part 

1 in effect on April 1, 2007. 

* * * * * 

■ Par. 3. Section 1.1502–13T is revised 

to read as follows: 

§ 1.1502–13T Intercompany transactions 

(temporary). 

(a) through (f)(5)(ii)(A) [Reserved]. For 

further guidance see § 1.1502–13(a) 

through (f)(5)(ii)(A). 

(B) Section 332—(1) In general. If 

section 332 would otherwise apply to 

T’s (old T’s) liquidation into B, and B 

transfers substantially all of old T’s 

assets to a new member (new T), and if 

a direct transfer of substantially all of 

old T’s assets to new T would qualify 

as a reorganization described in section 

368(a), then, for all Federal income tax 

purposes, T’s liquidation into B and B’s 

transfer of substantially all of old T’s 

assets to new T will be disregarded and 

instead, the transaction will be treated 

as if old T transferred substantially all 

of its assets to new T in exchange for 

new T stock and the assumption of T’s 

liabilities in a reorganization described 

in section 368(a). (Under § 1.1502– 

13(j)(1), B’s stock in new T would be a 

successor asset to B’s stock in old T, and 

S’s gain would be taken into account 

based on the new T stock.) 

(2) Time limitation and adjustments. 

The transfer of old T’s assets to new T 

qualifies under paragraph (f)(5)(ii)(B)(1) 

of this section only if B has entered into 

a written plan, on or before the due date 

of the group’s consolidated income tax 

return (including extensions), to transfer 

the T assets to new T, and the statement 

described in paragraph (f)(5)(ii)(E) of 

this section is included on or with a 

timely filed consolidated tax return for 

the tax year that includes the date of the 

liquidation (including extensions). 

However, see paragraph (f)(5)(ii)(F) of 

this section for certain situations in 

which the plan may be entered into after 

the due date of the return and the 

statement described in paragraph 

(f)(5)(ii)(E) of this section may be 

included on either an original tax return 

or an amended tax return filed after the 

due date of the return. In either case, the 

transfer of substantially all of T’s assets 

to new T must be completed within 12 

months of the filing of the return. 

Appropriate adjustments are made to 

reflect any events occurring before the 

formation of new T and to reflect any 

assets not transferred to new T, or 

liabilities not assumed by new T. For 

example, if B retains an asset of old T, 

the asset is treated under § 1.1502– 

13(f)(3) as acquired by new T but 

distributed to B immediately after the 

reorganization. 

(f)(5)(ii)(B)(3) through (f)(5)(ii)(E) 

[Reserved]. For further guidance, see 

§ 1.1502–13(f)(5)(ii)(B)(3) through 

(f)(5)(ii)(E). 

(F) Effective/Applicability dates—(1) 

General rule. Paragraphs (f)(5)(ii)(B)(1) 

and (f)(5)(ii)(B)(2) of this section apply 

to transactions in which old T’s 

liquidation into B occurs on or after 

October 25, 2007. 

(2) Prior periods. For transactions in 

which old T’s liquidation into B occurs 

before October 25, 2007, see § 1.1502– 

13(f)(5)(ii)(B)(1) and (f)(5)(ii)(B)(2) in 

effect prior to October 25, 2007 as 

contained in 26 CFR part 1, revised 

April 1, 2009. 

(3) Special rule for tax returns filed 

before November 3, 2009. In the case of 

a liquidation on or after October 25, 

2007, by a taxpayer whose original tax 

return for the year of liquidation was 

filed on or before November 3, 2009, 

then, notwithstanding paragraph 

(f)(5)(ii)(B)(2) of this section and 

§ 1.1502–13(f)(5)(ii)(E), the election to 

apply paragraph (f)(5)(ii)(B) of this 

section may be made by entering into 

the written plan described in paragraph 

(f)(5)(ii)(B) of this section on or before 

November 3, 2009, including the 

statement described in § 1.1502– 

13(f)(5)(ii)(E) on or with an original tax 

return or an amended tax return for the 

tax year that includes the liquidation 

filed on or before November 3, 2009, 

and transferring substantially all of T’s 

assets to new T within 12 months of the 

filing of such original or amended 

return. 

(G) Expiration date. These temporary 

regulations will expire on September 3, 

2012. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: February 24, 2011. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2011–4846 Filed 3–3–11; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2011–0066] 

Drawbridge Operation Regulations; 

Hackensack River, Jersey City, NJ, 

Maintenance 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, First Coast 

Guard District, has issued a temporary 

deviation from the regulation governing 

the operation of the Witt Penn Bridge at 

mile 3.1, across the Hackensack River, at 

Jersey City, New Jersey. The deviation is 

necessary to perform bridge 

maintenance. This deviation allows the 

bridge owner to require a two-hour 

advance notice for bridge openings. 

DATES: This deviation is effective from 

April 4, 2011 through May 8, 2011. 

ADDRESSES: Documents mentioned in 

this preamble as being available in the 

docket are part of docket USCG–2011– 

0066 and are available online at 


jdjones on DSK8KYBLC1PROD with RULES2
11960 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Rules and Regulations 

http://www.regulations.gov, inserting 

USCG–2011–0066 in the ‘‘Keyword’’ and 

then clicking ‘‘Search’’. They are also 

available for inspection or copying at 

the Docket Management Facility (M–30), 

U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC, 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

e-mail Mr. Joe Arca, Project Officer, 

First Coast Guard District, 

joe.m.arca@uscg.mil telephone (212) 

668–7165. If you have questions on 

viewing the docket, call Renee V. 

Wright, Program Manager, Docket 

Operations, telephone 202–366–9826. 

SUPPLEMENTARY INFORMATION: The Witt 

Penn Bridge, across the Hackensack 

River at mile 3.1 has a vertical clearance 

in the closed position of 35 feet at mean 

high water and 40 feet at mean low 

water. The existing drawbridge 

operation regulations are listed at 33 

CFR 117.723. 

The waterway has seasonal 

recreational vessels, and commercial 

vessels of various sizes. 

Most vessels that presently use this 

waterway can pass under the bridge 

without a bridge opening. 

The owner of the bridge, New Jersey 

Department of Transportation, requested 

a temporary deviation to facilitate the 

replacement of the AC drive motors and 

subsequent testing. 

Under this temporary deviation the 

Witt Penn Bridge, mile 3.1, across the 

Hackensack River may require a twohour advance notice for bridge openings 

from April 4, 2011 through May 8, 2011. 

Vessels that can pass under the bridge 

without a bridge opening may do so at 

all times. 

In accordance with 33 CFR 117.35(e), 

the bridge must return to its regular 

operating schedule immediately at the 

end of the designated time period. This 

deviation from the operating regulations 

is authorized under 33 CFR 117.35. 

Dated: February 11, 2011. 

Gary Kassof, 

Bridge Program Manager, First Coast Guard 

District. 

[FR Doc. 2011–4852 Filed 3–3–11; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2011–0081] 

Drawbridge Operation Regulation; 

Sacramento River, Sacramento, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, Eleventh 

Coast Guard District, has issued a 

temporary deviation from the regulation 

governing the operation of the Tower 

Drawbridge across the Sacramento 

River, mile 59.0, at Sacramento, CA. The 

deviation is necessary to allow the 

community to participate in the Annual 

Cesar Chavez March. This deviation 

allows the bridge to remain in the 

closed-to-navigation position during the 

event. 

DATES: This deviation is effective from 

10 a.m. to 11:30 a.m. on March 26, 2011. 

ADDRESSES: Documents mentioned in 

this preamble as being available in the 

docket are part of docket USCG–2011– 

0081 and are available online by going 

to http://www.regulations.gov, inserting 

USCG–2011–0081 in the ‘‘Keyword’’ box 

and then clicking ‘‘Search’’. They are 

also available for inspection or copying 

at the Docket Management Facility (M– 

30), U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

e-mail David H. Sulouff, Chief, Bridge 

Section, Eleventh Coast Guard District; 

telephone 510–437–3516, e-mail 

David.H.Sulouff@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: The 

California Department of Transportation 

has requested a temporary change to the 

operation of the Tower Drawbridge, 

mile 59.0, Sacramento River, at 

Sacramento, CA. The Tower Drawbridge 

navigation span provides a vertical 

clearance of 30 feet above Mean High 

Water in the closed-to-navigation 

position. The draw opens on signal from 

May 1 through October 31 from 6 a.m. 

to 10 p.m. and from November 1 

through April 30 from 9 a.m. to 5 p.m. 

At all other times the draw shall open 

on signal if at least four hours notice is 

given, as required by 33 CFR 117.189(a). 

Navigation on the waterway is 

commercial and recreational. 

The drawspan will be secured in the 

closed-to-navigation position from 10 

a.m. to 11:30 a.m. on March 26, 2011 to 

allow the community to participate in 

the Annual Cesar Chavez March. This 

temporary deviation has been 

coordinated with waterway users. There 

are no scheduled river boat cruises or 

anticipated levee maintenance during 

this deviation period. No objections to 

the proposed temporary deviation were 

raised. 

Vessels that can transit the bridge, 

while in the closed-to-navigation 

position, may continue to do so at any 

time. In the event of an emergency the 

drawspan can be opened with 15 

minutes advance notice. 

In accordance with 33 CFR 117.35(e), 

the drawbridge must return to its regular 

operating schedule immediately at the 

end of the designated time period. This 

deviation from the operating regulations 

is authorized under 33 CFR 117.35. 

Dated: February 17, 2011. 

D.H. Sulouff, 

District Bridge Chief, Eleventh Coast Guard 

District. 

[FR Doc. 2011–4853 Filed 3–3–11; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2011–0116] 

Drawbridge Operation Regulation; 

Cape Fear River, Wilmington, NC 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, Fifth Coast 

Guard District, has issued a temporary 

deviation from the regulation governing 

the operation of the Cape Fear River 

Memorial Bridge, across the Cape Fear 

River, mile 26.8, at Wilmington, NC. 

The deviation restricts the operation of 

the draw span to facilitate the cleaning 

and painting of the structure. 

DATES: This deviation is effective from 

7 a.m. on March 15, 2011 through 11:59 

p.m. on July 30, 2011. 

ADDRESSES: Documents mentioned in 

this preamble as being available in the 

docket are part of the docket USCG– 

2011–0116 and are available online by 

going to http://www.regulations.gov, 


jdjones on DSK8KYBLC1PROD with RULES2