§ 1.356-6. Rules for treatment of nonqualified preferred stock as other property.
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/us/cfr/t26/s§ 1.356-6·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)In general. For purposes of §§ 1.354-1(e), 1.355-1(c), and 1.356-3(b), the terms stock and securities do not include—
(1)Nonqualified preferred stock, as defined in section 351(g)(2), received in exchange for (or in a distribution with respect to) stock, or a right to acquire stock, other than nonqualified preferred stock; or
(2)A right to acquire such nonqualified preferred stock, received in exchange for (or in a distribution with respect to) stock, or a right to acquire stock, other than nonqualified preferred stock.
(b)Exceptions. The following exceptions apply:
(1)Certain recapitalizations. Paragraph
(a)of this section does not apply in the case of a recapitalization under section 368(a)(1)(E) of a family-owned corporation as described in section 354(a)(2)(C)(ii)(II).
(2)Transition rule. Paragraph
(a)of this section does not apply to a transaction described in section 1014(f)(2) of the Taxpayer Relief Act of 1997 (111 Stat. 921).
(c)Effective date. This section applies to nonqualified preferred stock, or a right to acquire such stock, received in connection with a transaction occurring on or after March 9, 1998. [T.D. 8753, 63 FR 411, Jan. 6, 1998. Redesignated by T.D. 8882, 65 FR 31078, May 16, 2000]
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- 111 Stat. 921
- T.D. 8753
- T.D. 8882
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§ 1.356-6
Rules for treatment of nonqualified preferred stock as other property.
Stat.111 Stat. 921
Treas. Dec.T.D. 8753
Treas. Dec.T.D. 8882
Cites 3Cited by 0 across 0 sources