I.R.C. § 341(a) Treatment Of Gain To Shareholders [Repealed] —
Gain from—
I.R.C. § 341(a)(1) —
the sale or exchange of stock of a collapsible corporation,
I.R.C. § 341(a)(2) —
a distribution—
I.R.C. § 341(a)(2)(A) —
in complete liquidation of a collapsible corporation if such distribution is treated
under this part as in part or full payment in exchange for stock, or
I.R.C. § 341(a)(2)(B) —
in partial liquidation (within the meaning of section 302(e))
of a collapsible corporation if such distribution is treated under section 302(b)(4) as in part or full payment in exchange for the stock, and
I.R.C. § 341(a)(3) —
a distribution made by a collapsible corporation which, under section 301(c)(3)(A), is treated, to the extent it exceeds the basis of the stock, in the same manner
as a gain from the sale or exchange of property, to the
extent that it would be considered (but for the provisions of this
section) as gain from the sale or exchange of a capital asset shall,
except as otherwise provided in this section, be considered as ordinary
income.
I.R.C. § 341(b) Definitions [Repealed]
I.R.C. § 341(b)(1) Collapsible Corporation [Repealed] —
For purposes of this section, the term “collapsible corporation” means a corporation
formed or availed of principally for the manufacture, construction, or production
of property, for the purchase of property which (in the hands of the corporation)
is property described in paragraph (3), or for the holding of stock in a corporation so formed or availed of, with a view
to—
I.R.C. § 341(b)(1)(A) —
the sale or exchange of stock by its shareholders (whether in liquidation or otherwise),
or a distribution to its shareholders, before the realization by the corporation
manufacturing, constructing, producing, or purchasing the property of 2/3 of the
taxable income to be derived from such property, and
I.R.C. § 341(b)(1)(B) —
the realization by such shareholders of gain attributable to such property.
I.R.C. § 341(b)(2) Production Or Purchase Of Property [Repealed] —
For purposes of paragraph (1), a corporation shall be deemed to have manufactured, constructed, produced, or purchased
property, if—
I.R.C. § 341(b)(2)(A) —
it engaged in the manufacture, construction, or production of such property to any
extent,
I.R.C. § 341(b)(2)(B) —
it holds property having a basis determined, in whole or in part, by reference to
the cost of such property in the hands of a person who manufactured, constructed,
produced, or purchased the property, or
I.R.C. § 341(b)(2)(C) —
it holds property having a basis determined, in whole or in part, by reference to
the cost of property manufactured, constructed, produced, or purchased by the corporation.
I.R.C. § 341(b)(3) Section 341 Assets [Repealed] —
For purposes of this section, the term “section 341 assets” means property held
for a period of less than 3 years which is—
I.R.C. § 341(b)(3)(A) —
stock in trade of the corporation, or other property of a kind which would properly
be included in the inventory of the corporation if on hand at the close of the taxable
year;
I.R.C. § 341(b)(3)(B) —
property held by the corporation primarily for sale to customers in the ordinary
course of its trade or business;
I.R.C. § 341(b)(3)(C) —
unrealized receivables or fees, except receivables from sales of property other than
property described in this paragraph; or
I.R.C. § 341(b)(3)(D) —
property described in section 1231(b) (without regard to any holding period therein provided), except such property which
is or has been used in connection with the manufacture, construction, production,
or sale of property described in subparagraph (A) or (B).
In determining whether the 3-year holding period specified in this paragraph has
been satisfied, section 1223 shall apply, but no such period shall be deemed to begin before the completion of
the manufacture, construction, production, or purchase.
I.R.C. § 341(b)(4) Unrealized Receivables [Repealed] —
For purposes of paragraph (3)(C), the term “unrealized receivables or fees” means, to the extent not previously includible
in income under the method of accounting used by the corporation, any rights (contractual
or otherwise) to payment for—
I.R.C. § 341(b)(4)(A) —
goods delivered, or to be delivered, to the extent the proceeds therefrom would
be treated as amounts received from the sale or exchange of property other than a
capital asset, or
I.R.C. § 341(b)(4)(B) —
services rendered or to be rendered.
I.R.C. § 341(c) Presumption In Certain Cases [Repealed]
I.R.C. § 341(c)(1) In General [Repealed] —
For purposes of this section, a corporation shall, unless shown to the contrary,
be deemed to be a collapsible corporation if (at the time of the sale or exchange,
or the distribution, described in subsection (a)) the fair market value of its section 341 assets (as defined in subsection (b)(3)) is—
I.R.C. § 341(c)(1)(A) —
50 percent or more of the fair market value of its total assets, and
I.R.C. § 341(c)(1)(B) —
120 percent or more of the adjusted basis of such section 341 assets.
Absence of the conditions described in subparagraphs (A) and (B) shall not give rise to a presumption that the corporation was not a collapsible
corporation.
I.R.C. § 341(c)(2) Determination Of Total Assets [Repealed] —
In determining the fair market value of the total assets of a corporation for purposes
of paragraph (1)(A), there shall not be taken into account—
I.R.C. § 341(c)(2)(A) —
cash,
I.R.C. § 341(c)(2)(B) —
obligations which are capital assets in the hands of the corporation, and
I.R.C. § 341(c)(2)(C) —
stock in any other corporation.
I.R.C. § 341(d) Limitations On Application Of Section [Repealed] —
In the case of gain realized by a shareholder with respect to his stock in a collapsible
corporation, this section shall not apply—
I.R.C. § 341(d)(1) —
unless, at any time after the commencement of the manufacture, construction, or
production of the property, or at the time of the purchase of the property described
in subsection (b)(3) or at any time thereafter, such shareholder (A) owned (or was considered as owning)
more than 5 percent in value of the outstanding stock of the corporation, or
(B) owned stock which was considered as owned at such time by another shareholder
who then owned (or was considered as owning) more than 5 percent in value of the
outstanding stock of the corporation;
I.R.C. § 341(d)(2) —
to the gain recognized during a taxable year, unless more than 70 percent of such
gain is attributable to the property described in subsection (b)(1);
and
I.R.C. § 341(d)(3) —
to gain realized after the expiration of 3 years following the completion of such
manufacture, construction, production, or purchase.
For purposes of paragraph (1), the ownership of stock shall be determined in accordance with the rules prescribed
in paragraphs (1), (2), (3), (5), and (6) of section 544(a) (relating to personal
holding companies); except that, in addition to the persons prescribed by paragraph
(2) of that section, the family of an individual shall include the spouses of that individual's
brothers and sisters (whether by the whole or half blood) and the spouses of that
individual's lineal descendants. In determining whether property is described in
subsection (b)(1) for purposes of applying paragraph (2), all property described in section 1221(a)(1) shall, to the extent provided in regulations prescribed by the Secretary, be treated
as one item of property.
I.R.C. § 341(e) Exceptions To Application Of Section [Repealed]
I.R.C. § 341(e)(1) Sales Or Exchanges Of Stock [Repealed] —
For purposes of subsection (a)(1), a corporation shall not be considered to be a collapsible corporation with respect
to any sale or exchange of stock of the corporation by a shareholder, if, at the
time of such sale or exchange, the sum of—
I.R.C. § 341(e)(1)(A) —
the net unrealized appreciation in subsection (e) assets of the corporation (as defined in paragraph (5)(A)), plus
I.R.C. § 341(e)(1)(B) —
if the shareholder owns more than 5 percent in value of the outstanding stock of
the corporation the net unrealized appreciation in assets of the corporation (other
than assets described in subparagraph (A)) which would be subsection (e) assets under clauses (i) and (iii)
of paragraph (5)(A) if the shareholder owned more than 20 percent in value of such
stock, plus
I.R.C. § 341(e)(1)(C) —
if the shareholder owns more than 20 percent in value of the outstanding stock of
the corporation and owns, or at any time during the preceding 3-year period owned,
more than 20 percent in value of the outstanding stock of any other corporation more
than 70 percent in value of the assets of which are, or were at any time during which
such shareholder owned during such 3-year period more than 20 percent in value of
the outstanding stock, assets similar or related in service or use to assets comprising
more than 70 percent in value of the assets of the corporation, the net unrealized
appreciation in assets of the corporation (other than assets described in subparagraph
(A))
which would be subsection (e) assets under clauses (i) and (iii) of paragraph (5)(A) if the determination whether the property, in the hands of such shareholder, would
be property gain from the sale or exchange of which would under any provision of
this chapter be considered in whole or in part as ordinary income, were made—
I.R.C. § 341(e)(1)(C)(i) —
by treating any sale or exchange by such shareholder of stock in such other corporation
within the preceding 3-year period (but only if at the time of such sale or exchange
the shareholder owned more than 20 percent in value of the outstanding stock in such
other corporation) as a sale or exchange by such shareholder of his proportionate
share of the assets of such other corporation, and
I.R.C. § 341(e)(1)(C)(ii) —
by treating any liquidating sale or exchange of property by such other corporation
within such 3-year period (but only if at the time of such sale or exchange the shareholder
owned more than 20 percent in value of the outstanding stock in such other corporation)
as a sale or exchange by such shareholder of his proportionate share of the property
sold or exchanged, does not exceed an amount equal to 15 percent of the net worth
of the corporation. This paragraph shall not apply to any sale or exchange of stock
to the issuing corporation or, in the case of a shareholder who owns more than 20
percent in value of the outstanding stock of the corporation, to any sale or exchange
of stock by such shareholder to any person related to him (within the meaning of
paragraph (8)).
I.R.C. § 341(e)[(2) —
to
I.R.C. § 341(e)(4) Repealed. Pub. L. 99-514, Title VI, 631(e)(6)(a), Oct. 22, 1986, 100 Stat. 2273]
I.R.C. § 341(e)(5) Subsection (e) Asset Defined [Repealed]
I.R.C. § 341(e)(5)(A) —
For purposes of paragraph (1), the term “subsection (e) asset"
means, with respect to property held by any corporation--
I.R.C. § 341(e)(5)(A)(i) —
property (except property used in the trade or business, as defined in paragraph
(9)) which in the hands of the corporation is, or, in the hands of a shareholder who
owns more than 20 percent in value of the outstanding stock of the corporation, would
be property gain from the sale or exchange of which would under any provision of
this chapter be considered in whole or in part as ordinary income;
I.R.C. § 341(e)(5)(A)(ii) —
property used in the trade or business
(as defined in paragraph (9)), but only if the unrealized depreciation on all such property on which there is
unrealized depreciation exceeds the unrealized appreciation on all such property
on which there is unrealized appreciation;
I.R.C. § 341(e)(5)(A)(iii) —
if there is net unrealized appreciation on all property used in the trade or business
(as defined in paragraph (9)), property used in the trade or business (as defined in paragraph (9))
which, in the hands of a shareholder who owns more than 20 percent in value of the
outstanding stock of the corporation, would be property gain from the sale or exchange
of which would under any provision of this chapter be considered in whole or in part
as ordinary income;
and
I.R.C. § 341(e)(5)(A)(iv) —
property (unless included under clause (i), (ii), or (iii)) which consists of a copyright, a literary, musical, or artistic composition, a
letter or memorandum, or similar property, or any interest in any such property,
if the property was created in whole or in part by the personal efforts of, or (in
the case of a letter, memorandum, or similar property)
was prepared, or produced in whole or in part for, any individual who owns more
than 5 percent in value of the stock of the corporation.
The determination as to whether property of the corporation in the hands of the corporation
is, or in the hands of a shareholder would be, property gain from the sale or exchange
of which would under any provision of this chapter be considered in whole or in
part as ordinary income; shall be made as if all property of the corporation had
been sold or exchanged to one person in one transaction.
I.R.C. § 341(e)(5)(B) —
[Repealed. Pub. L. 99-514, title VI, 631(3)(6)(B)(ii), Oct. 22, 1986, 100 Stat. 2273.]
I.R.C. § 341(e)(6) Net Unrealized Appreciation Defined [Repealed]
I.R.C. § 341(e)(6)(A) —
For purposes of this subsection, the term “net unrealized appreciation” means, with
respect to the assets of a corporation, the amount by which--
I.R.C. § 341(e)(6)(A)(i) —
the unrealized appreciation in such assets on which there is unrealized appreciation,
exceeds
I.R.C. § 341(e)(6)(A)(ii) —
the unrealized depreciation in such assets on which there is unrealized depreciation.
I.R.C. § 341(e)(6)(B) —
For purposes of subparagraph (A) and paragraph (5)(A), the term “unrealized
appreciation” means, with respect to any asset, the amount by which--
I.R.C. § 341(e)(6)(B)(i) —
the fair market value of such asset, exceeds
I.R.C. § 341(e)(6)(B)(ii) —
the adjusted basis for determining gain from the sale or other disposition of such
asset.
I.R.C. § 341(e)(6)(C) —
For purposes of subparagraph (A) and paragraph (5)(A), the term “unrealized
depreciation” means, with respect to any asset, the amount by which--
I.R.C. § 341(e)(6)(C)(i) —
the adjusted basis for determining gain from the sale or other disposition of such
asset, exceeds
I.R.C. § 341(e)(6)(C)(ii) —
the fair market value of such asset.
I.R.C. § 341(e)(6)(D) —
For purposes of this paragraph (but not paragraph (5)(A)), in the case of any asset on the sale or exchange of which only a portion of the
gain would under any provision of this chapter be considered as ordinary income,
there shall be taken into account only an amount of the unrealized appreciation in
such asset which is equal to such portion of the gain.
I.R.C. § 341(e)(7) Net Worth Defined [Repealed] —
For purposes of this subsection, the net worth of a corporation, as of any day,
is the amount by which--
I.R.C. § 341(e)(7)(A)
I.R.C. § 341(e)(7)(A)(i) —
the fair market value of all its assets at the close of such day, plus
I.R.C. § 341(e)(7)(A)(ii) —
the amount of any distribution in complete liquidation made by it on or before such
day, exceeds
I.R.C. § 341(e)(7)(B) —
all its liabilities at the close of such day.
For purposes of this paragraph, the net worth of a corporation as of any day shall
not take into account any increase in net worth during the one-year period ending
on such day to the extent attributable to any amount received by it for stock, or
as a contribution to capital or as paid-in surplus, if it appears that there was
not a bona fide business purpose for the transaction in respect of which such amount
was received.
I.R.C. § 341(e)(8) Related Person Defined [Repealed] —
For purposes of paragraphs (1) and (4), the following persons shall be considered to be related to a shareholder:
I.R.C. § 341(e)(8)(A) —
If the shareholder is an individual—
I.R.C. § 341(e)(8)(A)(i) —
his spouse, ancestors, and lineal descendants, and
I.R.C. § 341(e)(8)(A)(ii) —
a corporation which is controlled by such shareholder.
I.R.C. § 341(e)(8)(B) —
If the shareholder is a corporation—
I.R.C. § 341(e)(8)(B)(i) —
a corporation which controls, or is controlled by, the shareholder, and
I.R.C. § 341(e)(8)(B)(ii) —
if more than 50 percent in value of the outstanding stock of the shareholder is
owned by any person, a corporation more than 50 percent in value of the outstanding
stock of which is owned by the same person.
For purposes of determining the ownership of stock in
applying subparagraphs (A) and (B), the rules of section 267(c) shall apply, except that the family of an individual shall include only his spouse,
ancestors, and lineal descendants. For purposes of this paragraph, control means
the ownership of stock possessing at least 50 percent of the total combined voting
power of all classes of stock entitled to vote or at least 50 percent of the total
value of shares of all classes of stock of the corporation.
I.R.C. § 341(e)(9) Property Used In The Trade Or Business [Repealed] —
For purposes of this subsection, the term “property used in the trade or business”
means property described in section 1231(b), without regard to
any holding period therein provided.
I.R.C. § 341(e)(10) Ownership Of Stock [Repealed] —
For purposes of this subsection (other than paragraph (8)), the ownership of stock shall be determined in the manner prescribed in subsection
(d).
I.R.C. § 341(e)(11) Corporations And Shareholders Not Meeting Requirements [Repealed] —
In determining whether or not any corporation is a collapsible corporation within
the meaning of subsection (b), the fact that such corporation, or such corporation with respect to any of its
shareholders, does not meet the requirements of paragraph (1), (2), (3), or (4) of this subsection
shall not be taken into account, and such determination, in the case of a corporation
which does not meet such requirements, shall be made as if this subsection had not
been enacted.
I.R.C. § 341(e)(12) Nonapplication Of Section 1245(a), Etc. [Repealed] —
For purposes of this subsection, the determination of whether gain from the sale
or exchange of property would under any provision of this chapter be considered as
ordinary income, shall be made without regard to the application of sections 617(d)(1), 1245(a), 1250(a), 1252(a), 1254(a), and 1276(a).
I.R.C. § 341(f) Certain Sales Of Stock Of Consenting Corporations [Repealed]
I.R.C. § 341(f)(1) In General [Repealed] —
Subsection (a)(1) shall not apply to a sale of stock of a corporation (other than a sale to the issuing
corporation) if such corporation (hereinafter in this
subsection referred to as “consenting corporation”) consents (at such time and in
such manner as the Secretary may by regulations prescribe) to have the provisions
of paragraph (2) apply. Such consent shall apply with respect to each sale of stock of such corporation
made within the 6-month period beginning with the date on which such consent is filed.
I.R.C. § 341(f)(2) Recognition Of Gain [Repealed] —
Except as provided in paragraph (3), if a subsection (f) asset (as defined in paragraph (4)) is disposed of at any time by a consenting corporation (or, if paragraph (3) applies, by a transferee corporation), then the amount by which—
I.R.C. § 341(f)(2)(A) —
in the case of a sale, exchange, or involuntary conversion, the amount realized,
or
I.R.C. § 341(f)(2)(B) —
in the case of any other disposition, the fair market value of such asset, exceeds
the adjusted basis of such asset shall be treated as gain from the sale or exchange
of such asset. Such gain shall be recognized notwithstanding any other provision
of this subtitle, but only to the extent such gain is not recognized under any other
provision of this subtitle.
I.R.C. § 341(f)(3) Exception For Certain Tax-Free Transactions [Repealed] —
If the basis of a subsection (f) asset in the hands of a transferee is determined by reference to its basis in the
hands of the transferor by reason of the application of section 332, 351, or 361, then the amount of gain taken into account by the transferor under paragraph (2) shall not exceed the amount of gain recognized to the transferor on the transfer
of such asset
(determined without regard to this subsection). This paragraph shall apply only if
the transferee—
I.R.C. § 341(f)(3)(A) —
is not an organization which is exempt from tax imposed by this chapter, and
I.R.C. § 341(f)(3)(B) —
agrees (at such time and in such manner as the Secretary may by regulations prescribe)
to have the provisions of paragraph (2) apply to any disposition by it of such subsection
(f) asset.
I.R.C. § 341(f)(4) Subsection (f) Asset Defined [Repealed] —
For purposes of this subsection--
I.R.C. § 341(f)(4)(A) In General [Repealed] —
The term “subsection (f) asset"
means any property which, as of the date of any sale of stock referred to in paragraph
(1), is not a capital asset and is property owned by, or subject to an option to acquire
held by, the consenting corporation. For purposes of this subparagraph, land or any
interest in real property (other than a security interest), and unrealized receivables
or fees (as defined in subsection (b)(4)), shall be treated as property which is not a capital asset.
I.R.C. § 341(f)(4)(B) Property Under Construction [Repealed] —
If manufacture, construction, or production with respect to any property described
in subparagraph (A) has commenced before any date of sale described therein, the term “subsection (f) asset” includes the property resulting from such manufacture, construction, or production.
I.R.C. § 341(f)(4)(C) Special Rule For Land [Repealed] —
In the case of land or any interest in real property
(other than a security interest) described in subparagraph (A), the term “subsection (f)
asset” includes any improvements resulting from construction with respect to such
property if such construction is commenced (by the consenting corporation or by a
transferee corporation which has agreed to the application of paragraph (2))
within 2 years after the date of any sale described in subparagraph (A).
I.R.C. § 341(f)(5) 5-Year Limitation As To Shareholder [Repealed] —
Paragraph (1) shall not apply to the sale of stock of a corporation by a shareholder
if, during the 5-year period ending on the date of such sale, such
shareholder (or any related person within the meaning of subsection
(e)(8)(A)) sold any stock of another consenting corporation within any 6-month period beginning
on a date on which a consent was filed under paragraph (1) by such other corporation.
I.R.C. § 341(f)(6) Special Rule For Stock Ownership In Other Corporations [Repealed] —
If a corporation (hereinafter in this paragraph referred to as “owning corporation”)
owns 5 percent or more in value of the outstanding stock of another corporation on
the date of any sale of stock of the owning corporation during a 6-month period with
respect to which a consent under paragraph (1) was filed by the owning corporation, such consent shall not be valid with respect
to such sale unless such other corporation has (within the 6-month period ending
on the date of such sale) filed a valid
consent under paragraph (1) with respect to sales of its stock. For purposes of applying paragraph (4) to such other corporation, a sale of stock of the owning corporation to which paragraph
(1) applies shall be treated as a sale of stock of such other corporation. In the case
of a chain of corporations connected by the 5-percent ownership requirements of
this paragraph, rules similar to the rules of the two preceding sentences shall be
applied.
I.R.C. § 341(f)(7) Adjustments To Basis [Repealed] —
The Secretary shall prescribe such regulations as he may deem necessary to provide
for adjustments to the basis of property to reflect gain recognized under paragraph
(2).
I.R.C. § 341(f)(8) Special Rule For Foreign Corporations [Repealed] —
Except to the extent provided in regulations prescribed by the Secretary—
I.R.C. § 341(f)(8)(A) —
any consent given by a foreign corporation under paragraph (1) shall not be effective, and
I.R.C. § 341(f)(8)(B) —
paragraph (3) shall not apply if the transferee is a foreign corporation.
(Aug. 16, 1954, ch. 736, 68A Stat. 107; Sept. 2, 1958,
Pub. L. 85-866, title I, 20(a), 72 Stat. 1615; Oct. 16, 1962, Pub. L. 87-834, 13(f)(4), 76 Stat. 1035; Feb. 26, 1964, Pub. L. 88-272, title II, 231(b)(4), 78 Stat. 105; Aug. 22, 1964, Pub. L. 88-484, 1(a), 78 Stat. 596; Sept. 12, 1966, Pub. L. 89-570, 1(b)(4), 80 Stat. 762; Dec. 30, 1969, Pub. L. 91-172, title II, 211(b)(4), title V, 514(b)(1), 83 Stat. 570, 643; Oct. 4, 1976, Pub. L. 94-455, title II, 205(c)(2), title XIV, 1402(b)(1)(B), (2), title XIX, 1901(b)(3)(A),
(I), 1906(b)(13)(A), 90 Stat. 1535, 1731, 1732, 1792, 1793, 1834;
Aug. 13, 1981, Pub. L. 97-34, title V, 505(c)(2), 95 Stat. 332; Sept. 3, 1982, Pub. L. 97-248, title II, 222(e)(5), 96 Stat. 480; July 18, 1984, Pub. L. 98-369, div. A, title I, 43(c)(1), 65(a)-(c), 135(a), title IV, 492(b)(2), title X, 1001(b)(2),
98 Stat. 558, 584, 669, 854, 1011; Oct. 22, 1986, Pub. L. 99-514, title VI, 631(e)(6), title XVIII, 1804(i)(1), 1899A(8), 100 Stat. 2273, 2807, 2958;
Nov. 10, 1988, Pub. L. 100-647, title I, 1006(e)(18), 102 Stat. 3403; Aug. 20, 1996, Pub. L. 104-188, title I, 1702(h)(7), 110 Stat. 1755; Dec. 17,
1999, Pub. L. 106-170, title V, Sec. 532(c), 113 Stat. 1860; Repealed by Pub. L. 108-27, title III, Sec. 302(e)(4)(A), May 28, 2003, 117 Stat. 752.)
BACKGROUND NOTES
AMENDMENTS
2003-Pub. L. 108-27, title III, 302(e)(4), May 28, 2003, 117 Stat. Repealed Subpart C of part II of subchapter
C of chapter 1, effective generally for taxable years beginning after December 31,
2002.
1976--Pub. L. 94-455, title XIX, 1901(b)(12)(C), (D), Oct. 4, 1976, 90 Stat. 1795, struck out in subpart
heading “; Foreign Personal Holding Companies” after
“Collapsible Corporations” and item 342 “Liquidation of certain foreign personal holding
companies”.
AMENDMENTS
2003-Sec. 341. Pub. L. 108-27, section 302(e)(4)(A), repealed Sec. 341.
1999-Subsec. (d). Pub. L. 106-170, section 532(c), amended subsec (d) by substituting “section 1221(a)(1)” for “section 1221(1)”.
1996--Subsec. (f)(3). Pub. L. 104-188, section 1702(h)(7) struck out ‘351, 361, 371(a), or 374(a)’ in paragraph (3) and inserted ‘351, or 361’.
1988--Subsec. (e)(1)(C)(ii). Pub. L. 100-647 substituted “any liquidating sale or exchange” for “any sale or exchange” and struck
out “,gain or loss on which was not recognized to such other corporation under section
337(a),” after “other corporation)”.
1986--Subsec. (a). Pub. L. 99-514, 1804(i)(1), struck out “held for more than 6 months” after “exchange of a capital
asset” in concluding provisions.
Subsec. (e)(2) to (4). Pub. L. 99-514, 631(e)(6)(A), struck out par. (2) relating to distributions in liquidation, par.
(3) relating to recognition of gain in certain liquidations, and par. (4) relating
to gain or loss on sales or exchanges in connection with certain liquidations.
Subsec. (e)(5)(A). Pub. L. 99-514, 631(e)(6)(B)(i), substituted “paragraph (1)"
for “paragraphs (1), (2), and (4)”.
Subsec. (e)(5)(B). Pub. L. 99-514, 631(e)(6)(B)(ii), struck out subpar. (B) defining
“subsection (e) asset” for purposes of paragraph (3).
Subsec. (e)(12). Pub. L. 99-514, 1899A(8), inserted “,etc.” in heading.
1984--Subsec. (a). Pub. L. 98-369, 1001(b)(2), substituted
“6 months” for “1 year” in provision following par. (3).
Subsec. (b)(1)(A). Pub. L. 98-369, 65(a), substituted “2/3” for “a substantial part”.
Subsec. (d). Pub. L. 98-369, 65(b), inserted following par. (3) “In determining whether property is described
in subsection (b)(1) for purposes of applying paragraph
(2), all property described in section 1221(1) shall, to the extent provided in regulations
prescribed by the Secretary, be treated as one item of property.”
Subsec. (d)(2). Pub. L. 98-369, 65(c), substituted “described in subsection (b)(1)"
for “so manufactured, constructed, produced, or purchased”.
Subsec. (e)(12). Pub. L. 98-369, 492(b)(2), struck out “1251(c),” after “1250(a),”.
Pub. L. 98-369, 43(c)(1), substituted “1254(a), and 1276(a)” for “and 1254(a)”.
Subsec. (f)(8). Pub. L. 98-369, 135(a), added par. (8).
1982--Subsec. (a)(2). Pub. L. 97-248 designated existing provisions as subpars. (A) and (B), relating to complete and
partial liquidation, respectively, of a collapsible corporation, in subpars. (A) and
(B)
as so designated, substituted “if such distribution” for “which distribution”, and
in subpar. (B) as so designated, inserted “(within the meaning of section 302(e))”
before “of a collapsible corporation” and substituted
“under section 302(b)(4)” for “under this part”.
1981--Subsec. (c)(2)(B). Pub. L. 97-34 struck out “(and governmental obligations described in section 1221(5))” after “corporation”.
1976--Subsec. (a). Pub. L. 94-455, 1402(b)(1)(B), (2), 1901(b)(3)(I), in provisions following par. (3), provided that
“6 months” would be changed to “9 months” for taxable years beginning in 1977 and
“9 months"
would be changed to “1 year” for taxable years beginning after Dec. 31, 1977, and
substituted “ordinary income” for “gain from the sale or exchange of property which
is not a capital asset”.
Subsec. (e)(1)(C), (5)(A), (6)(D). Pub. L. 94-455, 1901(b)(3)(A), substituted
“ordinary income” for “gain from the sale or exchange of property which is neither
a capital asset nor property described in section 1231(b)” wherever appearing.
Subsec. (e)(12). Pub. L. 94-455, 205(c)(2), 1901(b)(3)(A), substituted “ordinary income” for “gain from the sale
or exchange of property which is neither a capital asset nor property described in
section 1231(b)” and “1252(a), and 1254(a)” for “and 1252(a)”.
Subsec. (f)(1), (3), (7). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate"
after “Secretary”.
1969--Subsec. (e)(5)(A)(iv). Pub. L. 91-172, 514(b)(1), inserted reference to a letter or memorandum.
Subsec. (e)(12). Pub. L. 91-172, 211(b)(4), substituted “1250(a), 1251(c), and 1252(a)” for “and 1250(a)”.
1966--Subsec. (e)(12). Pub. L. 89-570 inserted reference to section 617(d)(1).
1964--Subsec. (a). Pub. L. 88-484 substituted “except as otherwise provided in this section” for “except as provided
in subsection (d)”.
Subsec. (e)(12). Pub. L. 88-272 substituted “sections 1245(a) and 1250(a)” for
“section 1245(a)”.
Subsec. (f). Pub. L. 88-484 added subsection (f).
1962--Subsec. (e)(12). Pub. L. 87-834 added par. (12).
1958--Subsec. (e). Pub. L. 85-866 added subsec. (e).
EFFECTIVE DATE OF 2003 REPEAL
Repeal of Sec. 341 by Pub. L. 108-27, section 302(3)(4)(A), effective for taxable years beginning after December 31, 2002. Sec. 302(f)(2) of
Pub. L. 108-27, as amended by Pub. L. 108-311, Sec. 402(a)(6), provided that:
“(2) Pass-thru Entities.--In the case of a pass-thru entity described in subparagraph
(A), (B), (C), (D), (E), or (F) of section 1(h)(10) of the Internal Revenue Code of 1986, as amended by this Act, the amendments made by this section shall apply to
taxable years ending after December 31, 2002; except that dividends received by such
an entity on or before such date shall not be treated as qualified dividend income
(as defined in section 1(h)(11)(B) of such Code, as added by this Act).”
Sec. 303 (Sunset of Title) of Pub. L. 108-27, as amended by Sec. 102 of Pub. L. 109-222 and Sec. 102 of Pub. L. 111-312, and struck by Pub. L. 112-240, Sec. 102(a) (effective for taxable years beginning after Dec. 31, 2012), provided that: “All
provisions of, and amendments made by, this title shall not apply to taxable years
beginning after December 31, 2012, and the Internal Revenue Code of 1986 shall be
applied and administered to such years as if such provisions and amendments had never
been enacted.”
EFFECTIVE DATE OF 1999 AMENDMENT
Amendment by Pub. L. 106-170, section 532(c), effective for any instrument held, acquired, or entered into, any transaction entered
into and supplies held or acquired on or after the date of the enactment of this Act
[Enacted: Dec. 17, 1999].
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment to subsection (f)(3) by Pub. L. 104-188, section 1702(h)(7) effective, except as otherwise provided, as if included in the provision of the Revenue
Reconciliation Act of 1990 to which such amendment relates.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 631(e)(6) of Pub. L. 99-514 applicable to any distribution in complete liquidation, and any sale or exchange,
made by a corporation after July 31, 1986, unless such corporation is completely liquidated
before Jan. 1, 1987, any transaction described in section 338 of this title for which
the acquisition date occurs after Dec. 31, 1986, and any distribution, not in complete
liquidation, made after Dec. 31, 1986, with exceptions and special and transitional
rules, see section 633 of Pub. L. 99-514, set out as an Effective Date note under section 336 of this title.
Section 1804(i)(2) of Pub. L. 99-514 provided that: “The amendment made by paragraph
(1) [amending this section] shall apply with respect to sales, exchanges, and distributions
after September 27, 1985.”
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 437(c)(1) of Pub. L. 98-369 applicable to taxable years ending after July 18, 1984, see section 44 of Pub. L. 98-369, set out as an Effective Date note under section 1271 of this title.
Section 65(d) of Pub. L. 98-369 provided that: “The amendments made by this section
[amending this section] shall apply with respect to sales, exchanges, and distributions
made after the date of the enactment of this Act
[July 18, 1984].”
Section 135(b) of Pub. L. 98-369 provided that: “The amendment made by subsection
(a) [amending this section] shall take effect on the date of the enactment of this
Act [July 18, 1984].”
Amendment by section 492(b)(2) of Pub. L. 98-369 applicable to taxable years beginning after Dec. 31, 1983, see section 492(d) of
Pub. L. 98-369, set out as a note under section 170 of this title.
Amendment by section 1001(b)(2) of Pub. L. 98-369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see
section 1001(e)
of Pub. L. 98-369, set out as a note under section 166 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-248 applicable to distributions after Aug. 31, 1982, with exceptions for certain partial
liquidations, see section 222(f) of Pub. L. 97-248, set out as a note under section 302 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to property acquired and positions established by the taxpayer after June
23, 1981, in taxable years ending after such date, and applicable when so elected
with respect to property held on June 23, 1981, see section 508 of Pub. L. 97-34, set out as an Effective Date note under section 1092 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 205(c)(2) of Pub. L. 94-455 effective for taxable years ending after Dec. 31, 1975, see section 205(e) of Pub. L. 94-455, set out as an Effective Date note under section 1254 of this title.
Section 1402(b)(1) of Pub. L. 94-455 provided that the amendment made by section 1402(b)(1)(B)
of Pub. L. 94-455 is effective with respect to taxable years beginning in 1977.
Section 1402(b)(2) of Pub. L. 94-455 provided that the amendment made by section 1402(b)(2)
of Pub. L. 94-455 is effective with respect to taxable years beginning after Dec. 31, 1977.
Amendment by section 1901(b)(3) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of
Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 211(b)(4) of Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 211(c) of
Pub. L. 91-172, set out as a note under section 301 of this title.
Amendment by section 514(b)(1) of Pub. L. 91-172 applicable to sales and other dispositions occurring after July 25, 1969, see section
514(c) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under section 1221 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-570 applicable to taxable years ending after Sept. 12, 1966, but only in respect of expenditures
paid or incurred after such date, see section 3 of Pub. L. 89-570, set out as an Effective Date note under section 617 of this title.
EFFECTIVE DATE OF 1964 AMENDMENTS
Section 2 of Pub. L. 88-484 provided that: “The amendments made by the first section of this Act [amending sections
301, 312, 341, and 453 of this title] shall apply with respect to transactions after
the date of the enactment of this Act [Aug. 22, 1964] in taxable years ending after
such date.”
Amendment of section by Pub. L. 88-272 applicable to dispositions after Dec. 31, 1963, in taxable years ending after such
date, see section 231(c) of Pub. L. 88-272, set out as an Effective Date note under section 1250 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-834 applicable to taxable years beginning after Dec. 31, 1962, see section 13(g)
of Pub. L. 87-834, set out as an Effective Date note under section 1245 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Section 20(b) of Pub. L. 85-866 provided that: “The amendment made by subsection
(a) [amending this section] shall apply with respect to taxable years beginning after
December 31, 1957, but only with respect to sales, exchanges, and distributions after
the date of the enactment of this Act [Sept. 2, 1958].”
[342. Repealed. Pub. L. 94-455, title XIX, 1901(a)(47), Oct. 4, 1976, 90 Stat. 1772]
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 110, related to liquidation of certain
foreign personal holding companies.
Effective Date of Repeal
Repeal effective for taxable years beginning after Dec. 31, 1976, see section 1901(d)
of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title.
