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26 U.S.C. § 311 — Taxability of corporation on distribution

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 206 words · no verdicts yet

in plain englishAI-generated · not legal advice

A translation hasn’t been published for this section yet. The official text below is complete and authoritative.

the actual law source: uscode.house.gov ↗public domain
(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.

Source credit: (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.)

history & why it existsrecord from the source credit
  • 1954Enacted · Act of Aug. 16, 1954, ch. 736
  • 1969Amended · Pub. L. 91-172 · 83 Stat. 713, 714
  • 1976Amended · Pub. L. 94-452 · 90 Stat. 1511
  • 1976Amended · Pub. L. 94-455 · 90 Stat. 1771
  • 1978Amended · Pub. L. 95-600 · 92 Stat. 2941
  • 1980Amended · Pub. L. 96-471 · 94 Stat. 2253
  • 1982Amended · Pub. L. 97-248 · 96 Stat. 483
  • 1984Amended · Pub. L. 98-369 · 98 Stat. 568, 948
  • 1986Amended · Pub. L. 99-514 · 100 Stat. 2272
  • 1988Amended · Pub. L. 100-647 · 102 Stat. 3401, 3403, 3580

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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