Treasury Regulations (26 C.F.R.)
26 CFR § 1.1081-8
Exchanges in which money or other nonexempt property is received.
# (a)
Under section 1081(e)(1), if in any exchange (not within any of the provisions of section 1081(d)) in which stock or securities in a corporation which is a registered holding company or a majority-owned subsidiary are exchanged for stock or securities as provided for in section 1081 (a), there is received by the taxpayer money or other nonexempt property (in addition to property permitted to be received without recognition of gain), then—
(1) The gain, if any, to the taxpayer is to be recognized in an amount not in excess of the sum of the money and the fair market value of the other nonexempt property, but
(2) The loss, if any, to the taxpayer from such an exchange is not to be recognized to any extent.
# (b)
If money or other nonexempt property is received from a corporation in an exchange described in paragraph (a) of this section and if the distribution of such money or other nonexempt property by or on behalf of such corporation has the effect of the distribution of a taxable dividend, then, as provided in section 1081 (e)(2), there shall be taxed to each distributee (1) as a dividend, such an amount of the gain recognized on the exchange as is not in excess of the distributee's ratable share of the undistributed earnings and profits of the corporation accumulated after February 28, 1913, and (2) the remainder of the gain so recognized shall be taxed as a gain from the exchange of property.
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In this part (40 sections)
- 1.1059A-1 · Limitation on taxpayer's basis or inventory cost in…
- 1.1060-1 · Special allocation rules for certain asset acquisitions.
- 1.1061-0 · Table of contents.
- 1.1061-1 · Section 1061 definitions.
- 1.1061-2 · Applicable partnership interests and applicable trades or…
- 1.1061-3 · Exceptions to the definition of an API.
- 1.1061-4 · Section 1061 computations.
- 1.1061-5 · Section 1061(d) transfers to related persons.
- 1.1061-6 · Reporting rules.
- 1.1071-1 · Gain from sale or exchange to effectuate policies of Federal…
- 1.1071-2 · Nature and effect of election.
- 1.1071-3 · Reduction of basis of property pursuant to election under…
- 1.1071-4 · Manner of election.
- 1.1081-1 · Terms used.
- 1.1081-2 · Purpose and scope of exception.
- 1.1081-3 · Exchanges of stock or securities solely for stock or…
- 1.1081-4 · Exchanges of property for property by corporations.
- 1.1081-5 · Distribution solely of stock or securities.
- 1.1081-6 · Transfers within system group.
- 1.1081-7 · Sale of stock or securities received upon exchange by…
- 1.1081-8 · Exchanges in which money or other nonexempt property is…
- 1.1081-9 · Requirements with respect to order of Securities and…
- 1.1081-10 · Nonapplication of other provisions of the Internal Revenue…
- 1.1081-11 · Records to be kept and information to be filed with returns.
- 1.1082-1 · Basis for determining gain or loss.
- 1.1082-2 · Basis of property acquired upon exchanges under section 1081…
- 1.1082-3 · Reduction of basis of property by reason of gain not…
- 1.1082-4 · Basis of property acquired by corporation under section…
- 1.1082-5 · Basis of property acquired by shareholder upon tax-free…
- 1.1082-6 · Basis of property acquired under section 1081(d) in…
- 1.1083-1 · Definitions.
- 1.1091-1 · Losses from wash sales of stock or securities.
- 1.1091-2 · Basis of stock or securities acquired in “wash sales”.
- 1.1092(b)-1T · (b)-1T Coordination of loss deferral rules and wash sale…
- 1.1092(b)-2T · (b)-2T Treatment of holding periods and losses with…
- 1.1092(b)-3T · (b)-3T Mixed straddles; straddle-by-straddle…
- 1.1092(b)-4T · (b)-4T Mixed straddles; mixed straddle account…
- 1.1092(b)-5T · (b)-5T Definitions (temporary).
- 1.1092(b)-6 · (b)-6 Mixed straddles; accrued gain and loss associated…
- 1.1092(c)-1 · (c)-1 Qualified covered calls.