Source: http://taxtv.com/code/00307-USCODE-2011-title26-subtitleA-chap1-subchapC-partII-subpartB-sec336/
Timestamp: 2017-11-18 19:19:38
Document Index: 325733343

Matched Legal Cases: ['§336', '§336', '§336', '§631', '§1006', '§403', '§2', '§222', '§631', '§1006', '§1018', '§1006', '§1006', '§1006', '§1006', '§631']

IRC §336. Gain or loss recognized on property distributed in complete liquidation - TaxTV.com
IRC §336. Gain or loss recognized on property distributed in complete liquidation
View related content: IRC §336
(i) such distribution is not pro rata, or
(ii) such property is disqualified property.
For purposes of subparagraph (A), the term “disqualified property” means any property which is acquired by the liquidating corporation in a transaction to which section 3 applied, or as a contribution to capital, during the 5-year period ending on the date of the distribution. Such term includes any property if the adjusted basis of such property is determined (in whole or in part) by reference to the adjusted basis of property described in the preceding sentence.
(i) the adjusted basis of such property immediately after its acquisition by such corporation, over
(ii) the fair market value of such property as of such time.
(I) such property is acquired by the liquidating corporation in a transaction to which section 3 applied or as a contribution to capital, and
(II) the acquisition of such property by the liquidating corporation was part of a plan a principal purpose of which was to recognize loss by the liquidating corporation with respect to such property in connection with the liquidation.
(e) Certain stock sales and distributions may be treated as asset transfers
(Added Pub. L. 99– 4, title VI, §631(a), Oct. 22, 1986, 100 Stat. 2269; amended Pub. L. 100–647, title I, §§1006(e)(1)–(3), (21)(A), 1018(d)(5)(D), Nov. 10, 1988, 102 Stat. 3400, 3403, 3580.)
A prior section 336, acts Aug. 16, 1954, ch. 736, 68A Stat. 106; Apr. 2, 1980, Pub. L. 96–223, title IV, §403(b)(1), 94 Stat. 304; Oct. 19, 1980, Pub. L. 96–471, §2(b)(1), (c)(1), 94 Stat. 2253, 2254; Sept. 3, 1982, Pub. L. 97–248, title II, §222(b), (e)(1)(D), 224(c)(4), 96 Stat. 478, 480, 489, related to distributions of property in liquidation, prior to repeal by Pub. L. 99– 4, §631(a).
1988—Subsec. (b). Pub. L. 100–647, §1006(e)(21)(A), substituted “liabilities” for “liabilities in excess of basis” in heading.
Subsec. (c). Pub. L. 100–647, §1018(d)(5)(D), substituted “liquidations which are part of a reorganization” for “certain liquidations to which part III applies” in heading and amended text generally. Prior to amendment, text read as follows: “This section shall not apply with respect to any distribution of property to the extent there is nonrecognition of gain or loss with respect to such property to the recipient under part III.”
Subsec. (d)(2)(B)(ii). Pub. L. 100–647, §1006(e)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “For purposes of clause (i), any property described in clause (i)(I) acquired by the liquidating corporation during the 2-year period ending on the date of the adoption of the plan of complete liquidation shall, except as provided in regulations, be treated as part of a plan described in clause (i)(II).”
Subsec. (d)(3). Pub. L. 100–647, §1006(e)(2), inserted at end “The preceding sentence shall apply to any distribution to the 80-percent distributee only if subsection (a) or (b)(1) of section 337 applies to such distribution.”
Subsec. (e). Pub. L. 100–647, §1006(e)(3), substituted “an election may be made” for “such corporation may elect” in concluding provisions.
Section 633 of Pub. L. 99– 4, as amended by Pub. L. 100–647, title I, §1006(g), Nov. 10, 1988, 102 Stat. 3407, provided that:
“(a) General Rule.—Except as otherwise provided in this section, the amendments made by this subtitle [subtitle D (§§631–634) of title VI of Pub. L. 99– 4, enacting this section and section 337 of this title, amending sections 26, 311, 312, 332, 334, 338, 341, 346, 367, 453, 453B, 467, 852, 897, 1056, 1248, 1255, 1276, 1363, 1366, 1374, and 1375 of this title, and repealing former sections 333, 336, and 337 of this title] shall apply to—