Amended 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 substituted “shareholder” for “shareholders” in section catchline.
Cases: Commissioner v. Berghash, 361 F.2d 257 (2d Cir. 1966); Atlas Tool Co. v. Commissioner, 70 T.C. 86 (1978); James Armour, Inc. v. Commissioner, 43 T.C. 295 (1964)
Final rules 2
(a) Distributions in complete liquidation treated as exchanges Amounts received by a shareholder in a distribution in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock.
Amended 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 222(a), substituted provisions that amounts received by a shareholder in a distribution in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock for provisions that, in complete liquidations, amounts distributed shall be treated as in full payment in exchange for the stock, while amounts distributed in partial liquidation shall be treated as in part or full payment in exchange for the stock.
Cited by 9
(b) Nonapplication of section 301 Section 301 (relating to effects on shareholder of distributions of property) shall not apply to any distribution of property (other than a distribution referred to in paragraph (2)(B) of section 316(b)) in complete liquidation.
Amended 1964, 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 222(e)(1)(B), struck out “partial or” before “complete liquidation”.
- 1964 Pub. L. 88-272 Pub. L. 88–272 inserted “(other than a distribution referred to in paragraph (2)(B) of section 316(b))”.
(c) Cross reference For general rule for determination of the amount of gain or loss recognized, see section 1001.
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455 substituted “reference” for “references” in heading and struck out cross reference relating to general rule for determination of the amount of gain or loss to the distributee and substituted “section 1001” for “section 1002”.