26 U.S.C. § 311
Taxability of corporation on distribution
# (a) General rule
Except as provided in subsection (b), no gain or loss shall be recognized to a corporation on the distribution (not in complete liquidation) with respect to its stock of— (1) its stock (or rights to acquire its stock), or (2) property.
# (b) Distributions of appreciated property
(1) In general If— (A) a corporation distributes property (other than an obligation of such corporation) to a shareholder in a distribution to which subpart A applies, and (B) the fair market value of such property exceeds its adjusted basis (in the hands of the distributing corporation), then gain shall be recognized to the distributing corporation as if such property were sold to the distributee at its fair market value.
(2) Treatment of liabilities Rules similar to the rules of section 336(b) shall apply for purposes of this subsection.
(3) Special rule for certain distributions of partnership or trust interests If the property distributed consists of an interest in a partnership or trust, the Secretary may by regulations provide that the amount of the gain recognized under paragraph (1) shall be computed without regard to any loss attributable to property contributed to the partnership or trust for the principal purpose of recognizing such loss on the distribution.
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Cited by 37
- 26 CFR § 1.1245-1 — General rule for treatment of gain from dispositions of certain depreciable property.
- 26 CFR § 1.1245-6 — Relation of section 1245 to other sections.
- 26 CFR § 1.1251-1 — General rule for treatment of gain from disposition of property used in farming where farm losses offset nonfarm income.
- 26 CFR § 1.1252-1 — General rule for treatment of gain from disposition of farm land.
- 26 CFR § 1.1361-5 — Termination of QSub election.
- 26 CFR § 1.1502-13 — Intercompany transactions.
- 26 CFR § 1.1502-19 — Excess loss accounts.
- 26 CFR § 1.1502-32 — Investment adjustments.
- 26 CFR § 1.1502-36 — Unified loss rule.
- 26 CFR § 1.1502-76 — Taxable year of members of group.
- 26 CFR § 1.267(f)-1 — Controlled groups.
- 26 CFR § 1.312-3 — Liabilities.
Show 25 more
- 26 CFR § 1.312-4 — Examples of adjustments provided in section 312(c).
- 26 CFR § 1.337(d)-3 — Gain recognition upon certain partnership transactions involving a partner's stock.
- 26 CFR § 1.337(d)-7 — Tax on property owned by a C corporation that becomes property of a RIC or REIT.
- 26 CFR § 1.355-8 — Definition of predecessor and successor and limitations on gain recognition under section 355(e) and section 355(f).
- 26 CFR § 1.358-2 — Allocation of basis among nonrecognition property.
- 26 CFR § 1.367(a)-8 — Gain recognition agreement requirements.
- 26 CFR § 1.367(d)-1 — Transfers of intangible property to foreign corporations.
- 26 CFR § 1.46-1 — Determination of amount.
- 26 CFR § 1.56(g)-1 — Adjusted current earnings.
- 26 CFR § 1.617-4 — Treatment of gain from disposition of certain mining property.
- 26 CFR § 1.856-1 — Definition of real estate investment trust.
- 26 CFR § 1.9006-1 — Interest and penalties in case of certain taxable years.
- 26 CFR § 1.921-1T — Temporary regulations providing transition rules for DISCs and FSCs.
- 26 CFR § 1.995-4 — Gain on disposition of stock in a DISC.
- 26 CFR § 301.9100-7T — Time and manner of making certain elections under the Tax Reform Act of 1986.
- 26 CFR § 31.0-2 — General definitions and use of terms.
- 26 U.S.C. § 1248 — Gain from certain sales or exchanges of stock in certain foreign corporations
- 26 U.S.C. § 351 — Transfer to corporation controlled by transferor
- 26 U.S.C. § 355 — Distribution of stock and securities of a controlled corporation
- 26 U.S.C. § 361 — Nonrecognition of gain or loss to corporations; treatment of distributions
- 26 U.S.C. § 646 — Tax treatment of electing Alaska Native Settlement Trusts
- 26 U.S.C. § 852 — Taxation of regulated investment companies and their shareholders
- 26 U.S.C. § 9507 — Hazardous Substance Superfund
- 26 U.S.C. § 9509 — Oil Spill Liability Trust Fund
- 26 U.S.C. § 9801 — Increased portability through limitation on preexisting condition exclusions
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