# 26 U.S.C. § 997: Special subchapter C rules

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s997>. Cite pinpoints as 26 U.S.C. § 997(a)(1).

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—

## § 997(1)

be treated as a distribution in the same amount as if such distribution of property were made to an individual, and

## § 997(2)

have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).

## Regulations

- [Treas. Reg. § 1.997-1](/26/reg/1.997-1.md): Special rules for subchapter C of the Code. (interprets § 997)

## Amendments

- 1971-12-10: [Pub. L. 92-178](/26/act/92-178.md), 85 Stat. 549