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

eCFR as of 2026-10-19 · Interprets § 312

The part of the distribution properly chargeable to capital account within the provisions of section 312(e) shall not be considered a distribution of earnings and profits within the meaning of section 301 for the purpose of determining taxability of subsequent distributions by the corporation.