Source: https://irc.bloombergtax.com/public/uscode/doc/irc/351
Timestamp: 2019-04-25 00:52:20
Document Index: 513007745

Matched Legal Cases: ['§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351', '§ 351']

Internal Revenue Code, § 351. Transfer To Corporation Controlled By Transferor
I.R.C. § 351(a) General Rule —
I.R.C. § 351(b) Receipt Of Property —
If subsection (a) would apply to an exchange but for the fact that there is received, in addition to the stock permitted to be received under subsection (a), other property or money, then—
I.R.C. § 351(b)(1) —
I.R.C. § 351(b)(1)(A) —
I.R.C. § 351(b)(1)(B) —
I.R.C. § 351(b)(2) —
I.R.C. § 351(c) Special Rules Where Distribution To Shareholders
I.R.C. § 351(c)(1) In General —
In determining control for purposes of this section, the fact that any corporate transferor distributes part or all of the stock in the corporation which it receives in the exchange to its shareholders shall not be taken into account.
I.R.C. § 351(c)(2) Special Rule For Section 355 —
If the requirements of section 355 (or so much of section 356 as relates to section 355) are met with respect to a distribution described in paragraph (1), then, solely for purposes of determining the tax treatment of the transfers of property to the controlled corporation by the distributing corporation, the fact that the shareholders of the distributing corporation dispose of part or all of the distributed stock, or the fact that the corporation whose stock was distributed issues additional stock, shall not be taken into account in determining control for purposes of this section.
I.R.C. § 351(d) Services, Certain Indebtedness, And Accrued Interest Not Treated As Property —
For purposes of this section, stock issued for—
I.R.C. § 351(d)(1) —
I.R.C. § 351(d)(2) —
I.R.C. § 351(d)(3) —
interest on indebtedness of the transferee corporation which accrued on or after the beginning of the transferor's holding period for the debt, shall not be considered as issued in return for property.
I.R.C. § 351(e) Exceptions —
I.R.C. § 351(e)(1) Transfer Of Property To An Investment Company —
A transfer of property to an investment company. For purposes of the preceding sentence, the determination of whether a company is an investment company shall be made—
I.R.C. § 351(e)(1)(A) —
I.R.C. § 351(e)(1)(B) —
I.R.C. § 351(e)(1)(B)(i) —
I.R.C. § 351(e)(1)(B)(ii) —
I.R.C. § 351(e)(1)(B)(iii) —
I.R.C. § 351(e)(1)(B)(iv) —
any interest in a real estate investment trust, a common trust fund, a regulated investment company, a publicly-traded partnership (as defined in section 7704(b)) or any other equity interest (other than in a corporation) which pursuant to its terms or any other arrangement is readily convertible into, or exchangeable for, any asset described in any preceding clause, this clause or clause (v) or (viii),
I.R.C. § 351(e)(1)(B)(v) —
I.R.C. § 351(e)(1)(B)(vi) —
I.R.C. § 351(e)(1)(B)(vii) —
I.R.C. § 351(e)(1)(B)(viii) —
I.R.C. § 351(e)(2) Title 11 Or Similar Case —
A transfer of property of a debtor pursuant to a plan while the debtor is under the jurisdiction of a court in a title 11 or similar case (within the meaning of section 368(a)(3)(A)), to the extent that the stock received in the exchange is used to satisfy the indebtedness of such debtor.
I.R.C. § 351(f) Treatment Of Controlled Corporation —
I.R.C. § 351(f)(1) —
I.R.C. § 351(f)(2) —
such exchange is not in pursuance of a plan of reorganization, section 311 shall apply to any transfer in such exchange by the controlled corporation in the same manner as if such transfer were a distribution to which subpart A of part I applies.
I.R.C. § 351(g) Nonqualified Preferred Stock Not Treated As Stock-
I.R.C. § 351(g)(1) In General —
In the case of a person who transfers property to a corporation and receives nonqualified preferred stock—
I.R.C. § 351(g)(1)(A) —
I.R.C. § 351(g)(1)(B) —
I.R.C. § 351(g)(1)(B)(i) —
I.R.C. § 351(g)(1)(B)(ii) —
I.R.C. § 351(g)(2) Nonqualified Preferred Stock —
I.R.C. § 351(g)(2)(A) In General —
I.R.C. § 351(g)(2)(A)(i) —
I.R.C. § 351(g)(2)(A)(ii) —
I.R.C. § 351(g)(2)(A)(iii) —
I.R.C. § 351(g)(2)(A)(iv) —
I.R.C. § 351(g)(2)(B) Limitations —
Clauses (i), (ii), and (iii) of subparagraph (A) shall apply only if the right or obligation referred to therein may be exercised within the 20-year period beginning on the issue date of such stock and such right or obligation is not subject to a contingency which, as of the issue date, makes remote the likelihood of the redemption or purchase.
I.R.C. § 351(g)(2)(C) Exceptions For Certain Rights Or Obligations
I.R.C. § 351(g)(2)(C)(i) In General —
I.R.C. § 351(g)(2)(C)(i)(I) —
I.R.C. § 351(g)(2)(C)(i)(II) —
in the case of a right or obligation to redeem or purchase stock transferred in connection with the performance of services for the issuer or a related person (and which represents reasonable compensation), it may be exercised only upon the holder's separation from service from the issuer or a related person.
I.R.C. § 351(g)(2)(C)(ii) Exception —
I.R.C. § 351(g)(2)(C)(ii)(I) —
I.R.C. § 351(g)(2)(C)(ii)(II) —
I.R.C. § 351(g)(3) Definitions —
I.R.C. § 351(g)(3)(A) Preferred Stock —
The term “preferred stock” means stock which is limited and preferred as to dividends and does not participate in corporate growth to any significant extent. Stock shall not be treated as participating in corporate growth to any significant extent unless there is a real and meaningful likelihood of the shareholder actually participating in the earnings and growth of the corporation. If there is not a real and meaningful likelihood that dividends beyond any limitation or preference will actually be paid, the possibility of such payments will be disregarded in determining whether stock is limited and preferred as to dividends.
I.R.C. § 351(g)(3)(B) Related Person —
A person shall be treated as related to another person if they bear a relationship to such other person described in section 267(b) or 707(b).
I.R.C. § 351(g)(4) Regulations —
The Secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection and sections 354(a)(2)(C), 355(a)(3)(D), and 356(e). The Secretary may also prescribe regulations, consistent with the treatment under this subsection and such sections, for the treatment of nonqualified preferred stock under other provisions of this title.
I.R.C. § 351(h) Cross References
I.R.C. § 351(h)(1) —
I.R.C. § 351(h)(2) —
I.R.C. § 351(h)(3) —
I.R.C. § 351(h)(4) —
For special rule in the case of an exchange described in this section but which has the effect of the payment of compensation by the corporation or by a transferor, see section 61(a)(1).
I.R.C. § 351(h)(5) —
For coordination of this section with section 304, see section 304(b)(3).
(Aug. 16, 1954, ch. 736, 68A Stat. 111 ; Nov. 13, 1966, Pub. L. 89-809, title II, Sec. 203(a), (b), 80 Stat. 1577; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1901(a)(48)(A), (B), 90 Stat. 1772; Dec. 24, 1980, Pub. L. 96-589, Sec. 5(e), 94 Stat. 3406; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 226(a)(1)(B), 96 Stat. 491; Nov. 10, 1988, Pub. L. 100-647, title I, Sec. 1018(d)(5)(G), 102 Stat. 3580; Dec. 19, 1989, Pub. L. 101-239, title VII, Sec. 7203(a), (b), 103 Stat. 2333; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11704(a)(3), 104 Stat. 1388-518; Pub. L. 105-34, title X, Sec. 1002(a), 1012(c), 1014(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206, title VI, Sec. 6010(c), (e), July 22, 1998, 112 Stat 685; Pub. L. 105-277, title IV, Sec. 4003(f)(1), Oct. 21, 1998, 112 Stat 2681; Pub. L. 106-36, title III, Sec. 3001(d)(1), June 25, 1999, 113 Stat. 127; Mar. 9, 2002, Pub. L. 107-147, title IV, Sec. 417(9), 116 Stat. 21; Oct. 22, 2004, Pub. L. 108-357, title VIII, Sec. 899(a), 118 Stat. 1418; Dec. 21, 2005, Pub. L. 109-135, title IV, Sec. 403(kk), 119 Stat. 2577.)
2005 - Subsec. (g)(3)(A). Pub. L. 109-135, Sec. 403(kk), amended subpar. (A) by adding the sentence at the end.
2004 - Subsec. (g)(3)(A). Pub. L. 108-357, Sec. 899(a), amended subpar. (A) by adding the sentence at the end.
2002 - Subsec. (h)(1). Pub. L. 107-147, Sec. 417(9), amended par. (1) by inserting a comma after “liability”.
1999 - Subsec. (h)(1). Pub. L. 106-36, Sec. 3001(d)(1), amended par. (1) by striking “, or acquires property subject to a liability,” before “see section 357”.
1998 - Subsec. (c)(2). Pub. L. 105-277, Sec. 4003(f)(1), amended par. (2) by inserting “, or the fact that the corporation whose stock was distributed issues additional stock,” after “dispose of part or all of the distributed stock”.
Subsec. (c). Pub. L. 105-206, Sec. 6010(c)(3)(A), amended subsec. (c). Prior to amendment it read as follows:
“(c) Special Rules Where Distribution to Shareholders.--
In determining control for purposes of this section--
“(2) if the requirements of section 355 are met with respect to such distribution, the shareholders shall be treated as in control of such corporation immediately after the exchange if the shareholders own (immediately after the distribution) stock possessing--
Subsec. (g)(1). Pub. L. 105-206, Sec. 6010(e)(1), amended par. (1) by inserting “and” at the end of subpar. (A), by striking subpars. (B) and (C); and by adding subpar. (B). Prior to amendment subpars. (B) and (C) read as follows:
1997 - Subsec. (c). Pub. L. 105-34, Sec. 1012(c)(1), amended subsec. (c). Prior to amendment it read as follows:
“(c) Special rule
In determining control, for purposes of this section, the fact that any corporate transferor distributes part or all of the stock which it receives in the exchange to its shareholders shall not be taken into account.”
Subsec. (e)(1). Pub. L. 105-34, Sec. 1002(a), amended par. (1) by adding the material following the first sentence.
Subsec. (g). Pub. L. 105-34, Sec. 1014(a), redesignated subsec. (g) as subsec. (h) and added a new subsec. (h).
1990 - Subsec. (e)(2). Pub. L. 101-508 substituted ‘is used’ for ‘are used’.
1989 - Subsec. (a). Pub. L. 101-239, Sec. 7203(a), struck out ‘or securities’ after ‘stock’.
Subsecs. (b), (d), (e)(2). Pub. L. 101-239, Sec. 7203(b)(1), struck out ‘or securities’ after ‘stock’.
Subsec. (g)(2). Pub. L. 101-239, Sec. 7203(b)(2), substituted ‘stock or property’ for ‘stock, securities, or property’.
1988 - Subsecs. (f), (g). Pub. L. 100-647 added subsec. (f) and redesignated former subsec. (f) as (g).
1982 - Subsec. (f)(5). Pub. L. 97-248 added par. (5).
1980 - Subsec. (a). Pub. L. 96-589, Sec. 5(e)(2), struck out provision that stock or securities issued for services shall not be considered as issued in return for property for purposes of this section.
Subsec. (d). Pub. L. 96-589, Sec. 5(e)(1), added subsec. (d). Former subsec. (d) redesignated (e)(1).
Subsec. (e). Pub. L. 96-589, Sec. 5(e)(2), redesignated former subsec. (d) as par. (1) and added par. (2). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 96-589, Sec. 5(e)(1), redesignated former subsec. (e) as (f).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1901(a)(48)(A), struck out ‘(including, in the case of transfers made on or before June 30, 1967, an investment company)’ after ‘property is transferred to a corporation’.
Subsec. (d). Pub. L. 94-455, Sec. 1901(a)(48)(B), among other changes, substituted ‘Exception’ for ‘Application of June 30, 1967, date’ in heading and in text provision that this section does not apply to a transfer of property to an investment company for provisions relating to treatment of a transfer of property to an investment company as made on or before June 30, 1967.
1966 - Subsec. (a). Pub. L. 89-809, Sec. 203(a), inserted ‘(including, in the case of transfers made on or before June 30, 1967, an investment company)’ after ‘if property is transferred to a corporation’.
Subsecs. (d), (e). Pub. L. 89-809, Sec. 203(b), added subsec. (d) and redesignated former subsec. (d) as (e).
Amendment by Sec. 403(kk) of Pub. L. 109-135 effective as if included in the provisions of the American Jobs Creation Act of 2004 [Pub. L. 108-357, Sec. 899] to which it relates.
Amendment by Sec. 899(a) of Pub. L. 108-357 effective for transactions after May 14, 2003.
Amendment by Sec. 417(9) of Pub. L. 107-147 effective on the date of the enactment of this Act [enacted: Mar. 9, 2002].
Amendment by Sec. 3001(d)(1) of Pub. L. 106-36 applicable to transfers after October 18, 1998.
Amendment by Sec. 4003(f)(1) of Pub. L. 105-277 applicable as if included in the provisions of the Taxpayer Relief Act of 1997 to which it relates.
Amendment by Sec. 6010(c) of Pub. L. 105-206 applicable as if included in the amendments made by the Taxpayer Relief Act of 1997 to which it relates [Effective Date of Pub. L. 105-34, Sec. 1012: Transfers after Aug. 5, 1997, but see transition rule set forth below].
Amendment by Sec. 6010(e) of Pub. L. 105-206 applicable as if included in the amendments made by the Taxpayer Relief Act of 1997 to which they relate [Effective Date of Pub. L. 105-34, Sec. 1014: Transactions after June 8, 1997, but see transition rule set forth below].
Amendment by Sec. 1002(a) of Pub. L. 105-34 applicable to transfers after June 8, 1997, in taxable years ending after such date. Sec. 1002(b)(2) of Pub. L. 105-34 provided the following special rule:
“(2) Binding contracts.--The amendment made by subsection (a) shall not apply to any transfer pursuant to a written binding contract in effect on June 8, 1997, and at all times thereafter before such transfer if such contract provides for the transfer of a fixed amount of property.”
Amendment by Sec. 1012(c)(1) of Pub. L. 105-34 applicable to transfers after the date of the enactment of this Act [Aug. 5, 1997]. Sec. 1012(d)(3) of Pub. L. 105-34 provided the following transition rule:
“(3) Transition rule.--The amendments made by this section shall not apply to any distribution pursuant to a plan (or series of related transactions) which involves an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 (or, in the case of the amendments made by subsection (c), any transfer) occurring after April 16, 1997, if such acquisition or transfer is--
(A) made pursuant to an agreement which was binding on such date and at all times thereafter,
(C) described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required solely by reason of the acquisition or transfer.
This paragraph shall not apply to any agreement, ruling request, or public announcement or filing unless it identifies the acquirer of the distributing corporation or any controlled corporation, or the transferee, whichever is applicable.
Amendment by Sec. 1014(a) of Pub. L. 105-34 applicable to transactions after June 8, 1997. Sec. 1014(f)(2) of Pub. L. 105-34 provided the following transition rule:
“(2) Transition rule.--The amendments made by this section shall not apply to any transaction after June 8, 1997, if such transaction is--
(A) made pursuant to a written agreement which was binding on such date and at all times thereafter,
(C) described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required solely by reason of the transaction.”
Section 7203(c) of Pub. L. 101-239 provided that:
‘(1) In general. - Except as provided in this subsection, the amendments made by this section (amending this section) shall apply to transfers after October 2, 1989, in taxable years ending after such date.
‘(2) Binding contract. - The amendments made by this section shall not apply to any transfer pursuant to a written binding contract in effect on October 2, 1989, and at all times thereafter before such transfer.
‘(3) Corporate transfers. - In the case of property transferred (directly or indirectly through a partnership or otherwise) by a C corporation, paragraphs (1) and (2) shall be applied by substituting ‘July 11, 1989’ for ‘October 2, 1989’. The preceding sentence shall not apply where the corporation meets the requirements of section 1504(a)(2) of the Internal Revenue Code of 1986 with respect to the transferee corporation (and where the transfer is not part of a plan pursuant to which the transferor subsequently fails to meet such requirements).'
Section 1018(d)(5)(G) of Pub. L. 100-647 provided that the amendment made by that section is effective with respect to transfers on or after June 21, 1988.
Amendment by Pub. L. 97-248 applicable to transfers occurring after Aug. 31, 1982, except for certain transfers pursuant to an application to form a BHC filed with the Federal Reserve Board before Aug. 16, 1982, see section 226(c) of Pub. L. 97-248, set out as a note under section 304 of this title.
Amendment by Pub. L. 96-589 applicable to transactions which occur after Dec. 31, 1980, other than transactions which occur in proceedings in bankruptcy cases or similar judicial proceedings or in proceedings under Title 11, Bankruptcy, commencing on or before Dec. 31, 1980, except as otherwise provided, see section 7 of Pub. L. 96-589, set out as a note under section 108 of this title.
Section 1901(a)(48)(C) of Pub. L. 94-455 provided that: ‘The amendments made by this paragraph (amending this section) shall take effect with respect to transfers of property occurring after the date of the enactment of this Act (Oct. 4, 1976).’
Section 203(c) of Pub. L. 89-809 provided that: ‘The amendments made by subsections (a) and (b) (amending this section) shall apply with respect to transfers of property to investment companies whether made before, on, or after the date of the enactment of this Act (Nov. 13, 1966).’