Title 26-Internal Revenue

(This book contains Part 1, §§ 1.301 to 1.400)

Part

CHAPTER I-Internal Revenue Service, Department of the Treasury (Con

CHAPTER I-INTERNAL REVENUE SERVICE,

DEPARTMENT OF THE TREASURY

(Continued)

(Part 1, §§ 1.301 to 1.400)

Part 1

SUBCHAPTER A-INCOME TAX

Income tax; taxable years beginning after December 31, 1953 (Continued)

Supplementary Publication: Internal Revenue Service Looseleaf Regulations System. Additional supplementary publications are issued covering Alcohol and Tobacco Tax Regulations, and Regulations Under Tax Conventions.

SUBCHAPTER A-INCOME TAX (Continued)

PART 1-INCOME TAX; TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1953 (Continued)

Sec.

Normal Taxes and Surtaxes (Continued)

CORPORATE DISTRIBUTIONS AND ADJUSTMENTS

DISTRIBUTIONS BY CORPORATIONS

EFFECTS ON RECIPIENTS

1.301 Statutory provisions; distributions of property.

1.301-1 Rules applicable with respect to distributions of money and other property. 1.302 Statutory provisions; distributions in redemption of stock.

1.302-1

1.302-2

General.

Redemptions not taxable as dividends.

1.302-3 Substantially disproportionate redemption.

1.302-4 Termination of shareholder's interest.

1.303 Statutory provisions; distributions in redemption of stock to pay death taxes. 1.303-1

1.303-2

1.303-3

General.

Requirements.

Application of other sections.

1.304 Statutory provisions; redemption through use of related corporations. 1.304-1

General.

1.304-2 Acquisition by related corporation (other than subsidiary). 1.304-3 Acquisition by a subsidiary.

1.305 Statutory provisions; distributions of stock and stock rights. 1.305-1 Stock dividends.

1.305-2 Election of shareholders as to medium of payment.

1.305-3 Distributions in discharge of preference dividends.

1.306 Statutory provisions; dispositions of certain stock.

Sec.

1.307 Statutory provisions; basis of stock and stock rights acquired in distributions. 1.307-1 General.

1.307-2 Exception.

EFFECTS ON CORPORATION

1.311 Statutory provisions; taxability of corporation on distribution.

1.312 Statutory provisions; effect on earnings and profits.

1.312-1 Adjustment to earnings and profits reflecting distributions by corporations. 1.312-2 Distribution of inventory assets.

1.312-3 Liabilities.

1.312-4 Examples of adjustments provided in section 312(c).

1.312-5 Special rule for partial liquidations and certain redemptions.

1.312-6 Earnings and profits.

1.312-7 Effect on earnings and profits of gain or loss realized after February 28, 1913.

1.312-8 Effect on earnings and profits of receipt of tax-free distributions requiring adjustment or allocation of basis of stock.

1.312-9 Adjustments to earnings and profits reflecting increase in value accrued before March 1, 1913.

1.312-10 Allocation of earnings in certain corporate separations.

1.312-11

Effect on earnings and profits of certain other tax-free exchanges, tax-free distributions, and tax-free transfers from one corporation to another. 1.312-12 Distributions of proceeds of loans guaranteed by the United States. DEFINITIONS; CONSTRUCTIVE OWNERSHIP OF STOCK

1.316 Statutory provisions; dividend defined.

1.318 Statutory provisions; constructive ownership of stock.

1.318-1 Constructive ownership of stock; introduction.

1.318-2 Application of general rules.

1.318-3 Estates, trusts, and options.

1.318-4 Constructive ownership as actual ownership; exceptions.

CORPORATE LIQUIDATIONS

1.331

EFFECTS ON RECIPIENTS

Statutory provisions; gain or loss to shareholders in corporate liquidations. 1.331-1 Corporate liquidations.

1.332 Statutory provisions; complete liquidations of subsidiaries.

1.332-1 Distributions in liquidation of subsidiary corporation; general.

1.332-2 Requirements for nonrecognition of gain or loss.

1.332-3 Liquidations completed within one taxable year.

1.332-4 Liquidations covering more than one taxable year.

1.332-5 Distributions in liquidation as affecting minority interests.

1.332-6 Records to be kept and information to be filed with return.

1.332-7 Indebtedness of subsidiary to parent.

1.333 Statutory provisions; election as to recognition of gain in certain liquidations.

1.333-1 Corporate liquidations in some one calendar month.

1.333-2 Qualified electing shareholder.

1.333-3 Making and filling of written elections.

1.333-4 Treatment of gain.

1.333-5 Special rule for treatment of gain.

1.333-6 Records to be kept and information to be filed with return.

1.334 Statutory provisions; basis of property received in liquidations.

1.334-1 Basis of property received in liquidations.

1.334-2 Property received in liquidation under section 333.

EFFECTS ON CORPORATION

1.336 Statutory provisions; general rule.

1.336-1 General rule on liquidation of corporation.

1.337 Statutory provisions; gain or loss on sales or exchanges in connection with certain liquidations.

1.337-2 Sales or exchanges within the scope of section 337. 1.337-3 Property defined.

1.337-4 Limitation of gain.

1.337-5 Special rule for certain minority shareholders.

1.337-6

Information to be filed.

1.338 Statutory provisions; effect on earnings and profits.

COLLAPSIBLE CORPORATIONS; FOREIGN PERSONAL HOLDING COMPANIES

1.341 Statutory provisions; collapsible corporations.

1.341-4 Limitations on application of section. 1.341-5 Application of section.

1.341-6 Exceptions to application of section.

1.342 Statutory provisions; liquidation of certain foreign personal holding companies.

1.351 Statutory provisions; transfer to corporation controlled by transferor. 1.351-1 Transfer to corporation controlled by transferor.

1.351-2 Receipt of property.

1.351-3 Records to be kept and information to be filed.

EFFECTS ON SHAREHOLDERS AND SECURITY HOLDERS

1.354 Statutory provisions; exchanges of stock and securities in certain reorganizations.

1.354-1 Exchanges of stock and securities in certain reorganizations.

1.355 Statutory provisions; distribution of stock and securities of a controlled corporation.

1.355-1 Distribution of stock and securities of controlled corporation.

1.355-5

Active conduct of a trade or business.

Records to be kept and information to be filed.

1.356 Statutory provisions; receipt of additional consideration.

1.356-1 Receipt of additional consideration in connection with an exchange. 1.356-2 Receipt of additional consideration not in connection with an exchange. 1.356-3 Rules for treatment of securities as "other property".

1.356-4

Exchanges for section 306 stock.

1.356-5 Transactions involving gift or compensation.

1.357 Statutory provisions; assumption of liability.

1.357-1 Assumption of liability.

1.357-2 Liabilities in excess of basis.

1.358 Statutory provisions; basis to distributees.

1.358-1 Basis to distributees.

1.358-2 Allocation of basis among nonrecognition property.

1.358-3

1.358-4

1.361

1.361-1

Treatment of assumption of liabilities.
Exception.

EFFECTS ON CORPORATION

Statutory provisions; nonrecognition of gain or loss to corporations.
Nonrecognition of gain or loss to corporations.

1.362 Statutory provisions; basis to corporations.

1.362-1 Basis to corporations.

1.362-2 Certain contributions to capital.

1.363 Statutory provisions; effect on earnings and profits.