§ 334. Basis of property received in liquidations
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/usc/title-26/section-334A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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).
(Aug. 16, 1954, ch. 736, 68A Stat. 104; Pub. L. 89–809, title II, § 202(a), (b), Nov. 13, 1966, 80 Stat. 1576; Pub. L. 94–455, title XIX, §§ 1901(a)(45), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1772, 1834; Pub. L. 97–248, title II, §§ 222(e)(1)(C), 224(b), Sept. 3, 1982, 96 Stat. 480, 488; Pub. L. 99–514, title VI, § 631(e)(4), Oct. 22, 1986, 100 Stat. 2273; Pub. L. 100–647, title I, § 1006(e)(6), Nov. 10, 1988, 102 Stat. 3401; Pub. L. 105–277, div. J, title III, § 3001(b)(2), Oct. 21, 1998, 112 Stat. 2681–904; Pub. L. 108–357, title VIII, § 836(b), Oct. 22, 2004, 118 Stat. 1595; Pub. L. 109–135, title IV, § 403(dd)(1), Dec. 21, 2005, 119 Stat. 2630.)
Connections10 cite this · traces to 11
Cited by 10 sections · top 8
statutes-at-large
- Public Law 93–493
- Public Law 108–357To amend the Internal Revenue Code of 1986 to remove impediments in such Code and make our manufacturing, service, and high-technology businesses and workers more competitive and productive both at Oct. 22, 2004[[H
- Public Law 96–223To impose a windfall profit tax on domestic crude oil, and for other purposes
- Public Law 97–34To amend the Internal Revenue Code of 1954 to encourage economic growth through reduction of the tax rates for individual taxpayers, acceleration of capital cost recovery of investment in plant, equipment, and real property, and incentives for savings, and for other purposes
- 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 11 documents
U.S. Code
- Basis of property acquired from a decedent§ 1014
- Transfer to corporation controlled by transferor§ 351
- Constructive ownership of stock§ 318
- Limitation based on tax liability; definition of tax liability§ 26
- Complete liquidations of subsidiaries§ 332
- Tax imposed§ 1
- Certain stock purchases treated as asset acquisitions§ 338
- Gain or loss recognized on property distributed in complete liquidation§ 336
- Distributions in redemption of stock§ 302
- Definitions and special rules§ 2
- Installment method§ 453
47 references not yet in our index
- Aug. 16, 1954, ch. 736
- 68A Stat. 104
- Pub. L. 89–809, title II, § 202(a)
- 80 Stat. 1576
- Pub. L. 94–455, title XIX
- 90 Stat. 1772
- Pub. L. 97–248, title II
- 96 Stat. 480
- Pub. L. 99–514, title VI, § 631(e)(4)
- 100 Stat. 2273
- Pub. L. 100–647, title I, § 1006(e)(6)
- 102 Stat. 3401
- Pub. L. 105–277, div. J, title III, § 3001(b)(2)
- 112 Stat. 2681–904
- Pub. L. 108–357, title VIII, § 836(b)
- 118 Stat. 1595
- Pub. L. 109–135, title IV, § 403(dd)(1)
- 119 Stat. 2630
- Pub. L. 109–135
- Pub. L. 108–357
- Pub. L. 105–277
- Pub. L. 100–647
- Pub. L. 99–514, § 631(e)(4)(A)
- Pub. L. 99–514, § 631(e)(4)(B)
- Pub. L. 97–248, § 222(e)(1)(C)
- Pub. L. 97–248, § 224(b)
- Pub. L. 94–455
- Pub. L. 89–809, § 202(b)
- Pub. L. 89–809, § 202(a)
- section 403(nn) of Pub. L. 109–135
- Pub. L. 108–357, title VIII, § 836(c)(2)
- 118 Stat. 1596
- section 3001(c) of Pub. L. 105–277
- Pub. L. 99–514
- section 1019(a) of Pub. L. 100–647
- section 633 of Pub. L. 99–514
- section 222(e)(1)(C) of Pub. L. 97–248
- section 222(f) of Pub. L. 97–248
- section 224(b) of Pub. L. 97–248
- section 224(d) of Pub. L. 97–248
+ 7 more
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§ 334
Basis of property received in liquidations
Stat.×9
U.S.C.×1
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 104
Pub. L.Pub. L. 89–809, title II, § 202(a)
Cites 58 · showing 12Cited by 10 across 2 sources