Internal Revenue Code § 337. L. 85–866, title I, § 19, 72 Stat. L. 100–647, § 1006(e)(4)(C), substituted “an activity referred to in clause (i)” for “an unrelated trade or business of such organization”. 106; Sept. 2, 1958, Pub. For purposes of this section (1) 12-month acquisition period. (1) In general If property is received by a corporate distributee in a distribution in a complete liquidation to which section 332 applies (or in a transfer described in section 337(b)(1)), the basis of such property in the hands of such distributee shall be the same as it would be in the hands of the transferor; except that, in the hands … A prior section 337, acts Aug. 16, 1954, ch. --If any property to which clause (i) applied is disposed of by the organization acquiring such property, notwithstanding any other provision of law, any gain (not in excess of the amount not recognized by reason of clause (i)) shall be included in such organization's unrelated business taxable income. (ii) Later disposition or change in use. Under regulations prescribed by the Secretary, the basis of the purchasing corporations nonrecently purchased stock shall be the basis amount determined under subparagraph (B) of this paragraph if the purchasing corporation makes an election to recognize gain as if such stock were sold on the acquisition date for an amount equal to the basis amount determined under subparagraph (B). --If--, (A) section 521 From a corporation to its stockholders upon complete or partial liquidation of the corporation in a transaction which qualifies for income tax treatment pursuant to § 331, 332, 333, or 337 of the Internal Revenue Code as it exists at the time of liquidation; 8. (h) Definitions and special rules. SECTION 12-33-60. U.S. GAAP Codification, U.S. Tax Code by Section: Financial Accounting, Intermediate Accounting, Advanced Accounting: IFRS-U.S. GAAP Comparison, Securities Law Library: USC Title 26 enacted through 2008 § 337. The Tax Reform Act of 1986, referred to in subsec. § 337 - U.S. Code - Unannotated Title 26. L. 100–647, § 1006(e)(4)(A), (B), substituted “described in section 511(a)(2)” for “described in section 511(a)(2) or 511(b)(2)” and “in an activity the income from which is subject to tax under section 511(a)” for “in an unrelated trade or business (as defined in section 513)”. 337. LIQUIDATIONS UNDER SECTION 337 Theodore M. Garver The Internal Revenue Code of 1954 included a new provision, section 337, which allows the tax-free sale of property by a corporation in the process of liquidation. McDermott’s Real-Time Tax Disputes Insights. 26 U.S.C. Are We Opening a Pandora's Box in Criticizing Law Firms Challenging the 2020 Election? L. 96–223, title IV, § 403(b)(2)(A), 94 Stat. LIQUIDATIONS UNDER SECTION 337 Theodore M. Garver The Internal Revenue Code of 1954 included a new provision, section 337, which allows the tax-free sale of property by a corporation in the process of liquidation. Prior to the adoption of the 1954 Code, the law was marked by the confusion and unfairness inherent in the … Firefox, or L. 100–203 inserted at end “For purposes of this section, the determination of whether any corporation is an 80-percent distributee shall be made without regard to any consolidated return regulation.”. 7. L. 100–647, title I, § 1006(e)(5)(B), Section 337. section 332  regulations to ensure that such purposes may not be circumvented through the use of any provision of law or regulations (including the consolidated return regulations and part III of this subchapter) or through the use of a regulated investment company, real estate investment trust, or tax-exempt entity, and. (2) Treatment of tax-exempt distributee.--. Pub. FCC Again Rejects Net Neutrality Even as Controversy Reignites. HISTORY: 1962 Code Section 65-1257; 1952 Code Section 65-1257; 1945 (44) 337; 1991 Act No. Pub. 736, 68A Stat. . (c) 80-percent distributee. A Section 338(h)(10) election is much more common than a Section 338(g) election because the 338(g) election results in two levels of tax, whereas a 338(h)(10) election results in only one. L. 100–647, § 1006(e)(5)(A), in introductory provisions, substituted “amendments made by subtitle D of title VI of the Tax Reform Act of 1986” for “amendments made to this subpart by the Tax Reform Act of 1986”, and in par. --For purposes of this section, the term “80-percent distributee” means only the corporation which meets the 80-percent stock ownership requirements specified in L. 99–514, § 631(a). Internal Revenue Code Section 338(h)(10) Certain stock purchases treated as asset acquisitions. Treasury Releases Report on Reducing Tax Regulatory Burdens. L. 96–589, § 5(c), 94 Stat. For purposes of this section, the determination of whether any corporation is an 80-percent distributee shall be made without regard to any consolidated return regulation. . 489; Oct. 22, 1986, Pub. Internet Explorer 11 is no longer supported. 171, Part II, Section 22I. No gain or loss shall be recognized to the liquidating corporation on the distribution to the 80-percent distributee of any property in a complete liquidation to which section 332 applies. . Insight on the tax consequences of a complete liquidation to the shareholders of a corporation; Requirements of Section 337; Basis of tax imposed on shareholders under section 333. 171, Part II, Section 22I. Source Note: The provisions of this §3.337 adopted to be effective February 16, 2006, 31 TexReg 856; amended to be effective November 28, 2007, 32 TexReg 8521 L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. We recommend using § 58.1-337. 12/14/2020. L. 96–471, § 2(c)(2), 94 Stat. Amendment by Pub. 1988—Subsec. U.S. GAAP Codification, U.S. Tax Code by Section: Financial Accounting, Intermediate Accounting, Advanced Accounting: IFRS-U.S. GAAP Comparison, Securities Law Library: USC Title 26 enacted through 2008 § 337. § 337 (a) In General —. Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. distributed in complete liquidation of another corporation. . section 336 Begin typing to search, use arrow keys to navigate, use enter to select. (c). L. 99–514, Oct. 22, 1986, 100 Stat. If any property to which clause (i) applied is disposed of by the organization acquiring such property, notwithstanding any other provision of law, any gain (not in excess of the amount not recognized by reason of clause (i)) shall be included in such organization’s unrelated business taxable income. Subsec. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. This site is updated continuously and includes Editor’s Notes written by expert staff at Bloomberg Tax indicating when a section has been repealed or when there is a delayed effective date allowing you to … The Regulations generally provide that under either of two scenarios, a taxable event will be incurred at the corporate level: (a) a taxable corporation transfers all or substantially all of its assets to one or more tax-exempt entities (Asset Sale Rule), or (b) a taxable corporation changes its status to a tax-exempt entity (Chang… L. 88–272 do not apply if there is a complete liquidation of such corporation and if the distribution of all the property under such liquidation occurs before Jan. 1, 1966, except for certain liquidations to which section 332 of this title applies. This site is updated continuously and includes Editor’s Notes written by expert staff at Bloomberg Tax indicating when a section has been repealed or when there is a delayed effective date allowing you to … ) which is exempt from the tax imposed by this chapter. the Code, including section 337.-9 Section 1231(a) is, therefore, a computation section which deals with a specific type of income or loss to be shown on the tax return.20 It can neither be interpreted to be a general characterization of involuntary conversions as "sales" or "ex- FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system. food” exempt from the state sales and use tax under Code Section 12-36-2120(75), provided it is not one of the foods listed above in Regulation 117-337.1(B) - Items (1) through (10). Sec. 1615; Oct. 4, 1976, Pub. 26 U.S. Code § 337 - Nonrecognition for property distributed to parent in complete liquidation of subsidiary. --The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of the amendments made by subtitle D of title VI of the Tax Reform Act of 1986, including--, (1) the board of directors of a party to the reorganization adopted a resolution to solicit shareholder approval for the transaction, or, the shareholders or the board of directors of a party to the reorganization approved the transaction.”, {'misc': '', 'cleanpath': '/uscode/text/26/337', 'headtext': ' Nonrecognition for property distributed to parent in complete liquidation of subsidiary', 'cfr_titles': [{'title': '26', 'parts': [{'part': '1', 'cleanpath': '/cfr/text/26/part-1', 'headtext': 'INCOME TAXES'}]}], 'section': '337'}. Treatment of indebtedness of subsidiary, etc. Section 1237 Capital Gain Opportunity: This is a specific tax credit that allows taxpayers to receive capital gains treatment on the sale of subdivided lots of land. L. 100–647, title I, § 1006(e)(5)(B), Nov. 10, 1988, 102 Stat. (a) In general. Subparagraph (A) shall not apply to any distribution of property to an organization described in section 511(a)(2) if, immediately after such distribution, such organization uses such property in an activity the income from which is subject to tax under section 511(a). L. 95–600, title VII, § 701(i)(1), 92 Stat. section 332(b) For complete classification of this Act to the Code, see Tables. No gain or loss shall be recognized to the liquidating corporation on the distribution to the 80-percent distributee of any property in a complete liquidation to which section 332 applies. L. 99–514, set out as a note under section 336 of this title.  For purposes of this section, the determination of whether any corporation is an 80-percent distributee shall be made without regard to any consolidated return regulation. Nonrecognition For Property Distributed To Parent In Complete Liquidation Of Subsidiary. Internal Revenue Code § 337. 2254; Dec. 24, 1980, Pub. Code Section 337(d) Subscribe to Code Section 337(d)'s Posts. Google Chrome, Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. , any transfer of property to the 80-percent distributee in satisfaction of such indebtedness shall be treated as a distribution to such distributee in such liquidation. Introduction. Prior to the adoption of the 1954 Code, the law was marked by the confusion and unfairness inherent in the decisions of 2, 1980, Pub. 1772, 1834, 1912; Nov. 6, 1978, Pub. 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