§ 311. Taxability of corporation on distribution
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/usc/title-26/section-311A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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.
(Aug. 16, 1954, ch. 736, 68A Stat. 94; Pub. L. 91–172, title IX, § 905(a), (b)(1), Dec. 30, 1969, 83 Stat. 713, 714; Pub. L. 94–452, § 2(b), Oct. 2, 1976, 90 Stat. 1511; Pub. L. 94–455, title XIX, § 1901(a)(42)(A), (B)(i), (C), Oct. 4, 1976, 90 Stat. 1771; Pub. L. 95–600, title VII, § 703(j)(2)(A), (B), Nov. 6, 1978, 92 Stat. 2941; Pub. L. 96–471, § 2(b)(1), Oct. 19, 1980, 94 Stat. 2253; Pub. L. 97–248, title II, § 223(a), Sept. 3, 1982, 96 Stat. 483; Pub. L. 98–369, div. A, title I, § 54(a), title VII, § 712(j), July 18, 1984, 98 Stat. 568, 948;
Pub. L. 99–514, title VI, § 631(c), Oct. 22, 1986, 100 Stat. 2272; Pub. L. 100–647, title I, §§ 1006(e)(8)(B), (21)(B), 1018(d)(5)(E), Nov. 10, 1988, 102 Stat. 3401, 3403, 3580.)
Connections29 cite this · traces to 10
Cited by 29 sections · top 17
U.S. Code
statutes-at-large
- Public Law 91–169to promote the safety of employees and travelers upon railroads by limiting the hours of service of employees thereon,” approved March 4, 1907
- Public Law 900
- Public Law 287
- Public Law 91–675
- Public Law 415
- Public Law 97–448To make technical corrections in the Economic Recovery Tax Act of 1981 and certain other recent tax legislation
- Public Law 100–647To make technical corrections relating to the Tax Reform Act of 1986, and for other purposes
- Public Law 98–369To provide for tax reform, and for deficit reduction
- Public Law 96–223To impose a windfall profit tax on domestic crude oil, and for other purposes
- Public Law 95–600To amend the Internal Revenue Code of 1954 to reduce income taxes, and for other purposes
- Public Law 94–452To amend the Internal Revenue Code of 1654 with respect to the tax treatment of certain divestitures of assets by bank holding companies
- Public Law 97–248To provide for tax equity and fiscal responsibility, and for other purposes
- Public Law 96–471To amend the Internal Revenue Code of 1954 to revise the rules relating to certain installment sales
- Public Law 94–455To reform the tax laws of the United States
Traces to 10 documents
U.S. Code
- Trusts, etc., in restraint of trade illegal; penalty§ 1
- Definitions; short title§ 12
- Exemption from tax on corporations, certain trusts, etc.§ 501
- Tax imposed§ 1
- Certain stock purchases treated as asset acquisitions§ 338
- Gain or loss recognized on property distributed in complete liquidation§ 336
- Distributions of property§ 301
- Tax withheld on wages§ 31
- Installment method§ 453
- Definitions and special rules§ 2
68 references not yet in our index
- Aug. 16, 1954, ch. 736
- 68A Stat. 94
- Pub. L. 91–172, title IX, § 905(a)
- 83 Stat. 713
- Pub. L. 94–452, § 2(b)
- 90 Stat. 1511
- Pub. L. 94–455, title XIX, § 1901(a)(42)(A)
- 90 Stat. 1771
- Pub. L. 95–600, title VII, § 703(j)(2)(A)
- 92 Stat. 2941
- Pub. L. 96–471, § 2(b)(1)
- 94 Stat. 2253
- Pub. L. 97–248, title II, § 223(a)
- 96 Stat. 483
- Pub. L. 98–369, div. A, title I, § 54(a)
- 98 Stat. 568
- Pub. L. 99–514, title VI, § 631(c)
- 100 Stat. 2272
- Pub. L. 100–647, title I
- 102 Stat. 3401
- Pub. L. 100–647, § 1018(d)(5)(E)
- Pub. L. 100–647, § 1006(e)(21)(B)
- Pub. L. 100–647, § 1006(e)(8)(B)
- Pub. L. 99–514
- Pub. L. 98–369, § 54(a)(3)
- Pub. L. 98–369, § 54(a)(1)
- Pub. L. 98–369, § 54(a)(2)(A)
- Pub. L. 98–369, § 712(j)
- Pub. L. 98–369, § 54(a)(2)(C)
- Pub. L. 97–248, § 223(a)(1)
- Pub. L. 97–248, § 223(a)(3)
- section 1101 of this title
- Pub. L. 97–248, § 223(a)(2)
- Pub. L. 96–471
- Pub. L. 95–600
- Pub. L. 94–455, § 1901(a)
- Pub. L. 94–452
- Pub. L. 94–455
- 26 Stat. 209
- 38 Stat. 730
+ 28 more
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§ 311
Taxability of corporation on distribution
Stat.×24
U.S.C.×5
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 94
Pub. L.Pub. L. 91–172, title IX, § 905(a)
Cites 78 · showing 12Cited by 29 across 2 sources