26 U.S.C. § 334
Basis of property received in liquidations
# (a) General rule
If property is received in a distribution in complete liquidation, and if gain or loss is recognized on receipt of such property, then the basis of the property in the hands of the distributee shall be the fair market value of such property at the time of the distribution.
# (b) Liquidation of subsidiary
(1) In general If property is received by a corporate distributee in a distribution in a complete liquidation to which section 332 applies (or in a transfer described in section 337(b)(1)), the basis of such property in the hands of such distributee shall be the same as it would be in the hands of the transferor; except that, in the hands of such distributee— (A) the basis of such property shall be the fair market value of the property at the time of the distribution in any case in which gain or loss is recognized by the liquidating corporation with respect to such property, and (B) the basis of any property described in section 362(e)(1)(B) shall be the fair market value of the property at the time of the distribution in any case in which such distributee’s aggregate adjusted basis of such property would (but for this subparagraph) exceed the fair market value of such property immediately after such liquidation. (2) Corporate distributee For purposes of this subsection, the term “corporate distributee” means only the corporation which meets the stock ownership requirements specified in section 332(b).
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Cited by 40
- 26 CFR § 1.1245-2 — Definition of recomputed basis.
- 26 CFR § 1.1245-4 — Exceptions and limitations.
- 26 CFR § 1.1248(f)-2 — Exceptions for certain distributions and attribution rules.
- 26 CFR § 1.1250-2 — Additional depreciation defined.
- 26 CFR § 1.1251-4 — Exceptions and limitations.
- 26 CFR § 1.1252-2 — Special rules.
- 26 CFR § 1.1254-0 — Table of contents for section 1254 recapture rules.
- 26 CFR § 1.1254-2 — Exceptions and limitations.
- 26 CFR § 1.1254-3 — Section 1254 costs immediately after certain acquisitions.
- 26 CFR § 1.1502-13 — Intercompany transactions.
- 26 CFR § 1.1502-3 — Consolidated tax credits.
- 26 CFR § 1.1502-80 — Applicability of other provisions of law.
Show 28 more
- 26 CFR § 1.269-6 — Relationship of section 269 to section 382 before the Tax Reform Act of 1986.
- 26 CFR § 1.279-3 — Corporate acquisition indebtedness.
- 26 CFR § 1.332-1 — Distributions in liquidation of subsidiary corporation; general.
- 26 CFR § 1.332-4 — Liquidations covering more than one taxable year.
- 26 CFR § 1.334-1 — Basis of property received in liquidations.
- 26 CFR § 1.355-6 — Recognition of gain on certain distributions of stock or securities in controlled corporation.
- 26 CFR § 1.367(a)-8 — Gain recognition agreement requirements.
- 26 CFR § 1.367(b)-3 — Repatriation of foreign corporate assets in certain nonrecognition transactions.
- 26 CFR § 1.367(b)-3T — Repatriation of foreign corporate assets in certain nonrecognition transactions (temporary).
- 26 CFR § 1.381(c)(6)-1 — Depreciation method.
- 26 CFR § 1.453-9 — Gain or loss on disposition of installment obligations.
- 26 CFR § 1.460-4 — Methods of accounting for long-term contracts.
- 26 CFR § 1.47-3 — Exceptions to the application of § 1.47-1.
- 26 CFR § 1.50A-4 — Exceptions to the application of § 1.50A-3.
- 26 CFR § 1.615-4 — Limitation of amount deductible.
- 26 CFR § 1.617-2 — Limitation on amount deductible.
- 26 CFR § 1.617-3 — Recapture of exploration expenditures.
- 26 CFR § 1.617-4 — Treatment of gain from disposition of certain mining property.
- 26 CFR § 1.755-1 — Rules for allocation of basis.
- 26 CFR § 1.861-15 — Income from certain aircraft or vessels first leased on or before December 28, 1980.
- 26 CFR § 1.861-16 — Income from certain craft first leased after December 28, 1980.
- 26 CFR § 1.897-3 — Election by foreign corporation to be treated as a domestic corporation under section 897(i).
- 26 CFR § 1.897-4AT — Table of contents (temporary).
- 26 CFR § 1.897-5T — Corporate distributions (temporary).
- 26 CFR § 1.9200-1 — Deduction for motor carrier operating authority.
- 26 CFR § 1.964-1 — Determination of the earnings and profits of a foreign corporation.
- 26 CFR § 1.995-4 — Gain on disposition of stock in a DISC.
- 26 CFR § 16A.1255-2 — Special rules.
Nearby sections (25 sections)
- 304 · Redemption through use of related corporations
- 305 · Distributions of stock and stock rights
- 306 · Dispositions of certain stock
- 307 · Basis of stock and stock rights acquired in distributions
- 311 · Taxability of corporation on distribution
- 312 · Effect on earnings and profits
- 316 · Dividend defined
- 317 · Other definitions
- 318 · Constructive ownership of stock
- 331 · Gain or loss to shareholder in corporate liquidations
- 332 · Complete liquidations of subsidiaries
- 333 · Repealed. Pub. L. 99–514, title VI, § 631(e)(3), Oct. 22, 1986,…
- 334 · Basis of property received in liquidations
- 336 · Gain or loss recognized on property distributed in complete…
- 337 · Nonrecognition for property distributed to parent in complete…
- 338 · Certain stock purchases treated as asset acquisitions
- 341 · Repealed. Pub. L. 108–27, title III, § 302(e)(4)(A), May 28,…
- 342 · Repealed. Pub. L. 94–455, title XIX, § 1901(a)(47), Oct. 4, 1976,…
- 346 · Definition and special rule
- 351 · Transfer to corporation controlled by transferor
- 354 · Exchanges of stock and securities in certain reorganizations
- 355 · Distribution of stock and securities of a controlled corporation
- 356 · Receipt of additional consideration
- 357 · Assumption of liability
- 358 · Basis to distributees