Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1368&num=0&edition=prelim
Timestamp: 2020-04-01 08:30:47
Document Index: 523119180

Matched Legal Cases: ['§ 1368', '§2', '§305', '§721', '§1879', '§1309', '§8232', '§401', '§1309', '§721', '§311']

[USC02] 26 USC 1368: Distributions
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26 USC 1368: Distributions Text contains those laws in effect on March 31, 2020
From Title 26-INTERNAL REVENUE CODESubtitle A-Income TaxesCHAPTER 1-NORMAL TAXES AND SURTAXESSubchapter S-Tax Treatment of S Corporations and Their ShareholdersPART II-TAX TREATMENT OF SHAREHOLDERS
In the case of a distribution described in subsection (a) by an S corporation which has no accumulated earnings and profits-
In the case of a distribution described in subsection (a) by an S corporation which has accumulated earnings and profits-
Subsections (b) and (c) shall be applied by taking into account (to the extent proper)-
For purposes of clause (i), the term "net negative adjustment" means, with respect to any taxable year, the excess (if any) of-
If a director receives a distribution (not in part or full payment in exchange for stock) from an S corporation with respect to any restricted bank director stock (as defined in section 1361(f)), the amount of such distribution-
(Added Pub. L. 97–354, §2, Oct. 19, 1982, 96 Stat. 1680 ; amended Pub. L. 97–448, title III, §305(d)(2), Jan. 12, 1983, 96 Stat. 2399 ; Pub. L. 98–369, div. A, title VII, §721(r), July 18, 1984, 98 Stat. 970 ; Pub. L. 99–514, title XVIII, §1879(m)(1)(B), Oct. 22, 1986, 100 Stat. 2910 ; Pub. L. 104–188, title I, §1309(a)(2)–(c), Aug. 20, 1996, 110 Stat. 1783 ; Pub. L. 110–28, title VIII, §8232(b), May 25, 2007, 121 Stat. 197 ; Pub. L. 115–141, div. U, title IV, §401(a)(193), Mar. 23, 2018, 132 Stat. 1193 .)
2018-Subsec. (f)(2). Pub. L. 115–141 substituted "is included" for "in included".
2007-Subsec. (f). Pub. L. 110–28 added subsec. (f).
1996-Subsec. (d). Pub. L. 104–188, §1309(a)(2), inserted at end "In the case of any distribution made during any taxable year, the adjusted basis of the stock shall be determined with regard to the adjustments provided in paragraph (1) of section 1367(a) for the taxable year."
1986-Subsec. (e)(1)(A). Pub. L. 99–514 inserted "and no adjustment shall be made for Federal taxes attributable to any taxable year in which the corporation was a C corporation" before period at end.
1984-Subsec. (c). Pub. L. 98–369, §721(r)(2), inserted "Except to the extent provided in regulations, if the distributions during the taxable year exceed the amount in the accumulated adjustments account at the close of the taxable year, for purposes of this subsection, the balance of such account shall be allocated among such distributions in proportion to their respective sizes."
1983-Subsec. (e)(3). Pub. L. 97–448 added par. (3).
Pub. L. 97–448, title III, §311(c)(4), Jan. 12, 1983, 96 Stat. 2411 , provided that: "The amendments made by subsection (d) of section 305 [amending this section and sections 221, 1374, and 4975 of this title, enacting provisions set out as a note under section 1361 of this title, and amending provisions set out as a note under section 1361 of this title] shall take effect on the date of the enactment of the Subchapter S Revision Act of 1982 [Oct. 19, 1982]."