26 U.S.C. § 997 — Special subchapter C rules
submitted 55 years ago by Pub. L. 92-178 to r/title-26-INTERNAL-REVENUE-CODE · 79 words · no verdicts yet
A property distribution by a DISC or former DISC to a corporation is valued and given a basis under the same amount used for a distribution to an individual.
For applying subchapter C of chapter 1, when a DISC* or former DISC* distributes property to a corporation* out of previously taxed income or accumulated DISC income: (1) treat the distribution as having the same amount it would have if made to an individual; and (2) give the recipient corporation a basis in the property equal to that amount.
For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation* by a DISC* or former DISC* which is made out of previously taxed income or accumulated DISC income shall—
be treated as a distribution in the same amount as if such distribution of property were made to an individual, and
have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).
Source credit: (Added Pub. L. 92–178, title V, § 501, Dec. 10, 1971, 85 Stat. 549.)
- 1971Enacted · Pub. L. 92-178 · 85 Stat. 549
A history note hasn’t been published yet. The record shows enactment by Pub. L. 92-178 on 1971-12-10.
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