26Title 26The US tax code, read & explained

26 U.S.C. § 331

§ 331. Gain or loss to shareholder in corporate liquidations

102 words · amended 4 times · cited by 4 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Part of the code since 1954. Last changed March 23, 2018 by the Consolidated Appropriations Act, 2018.

Every change, newest first (5)
  1. March 23, 2018Consolidated Appropriations Act, 2018
  2. September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
  3. October 4, 1976Tax Reform Act of 1976
  4. February 26, 1964Public Law 88-272
  5. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Distributions in complete liquidation treated as exchanges
  2. (b) Nonapplication of section 301
  3. (c) Cross reference
(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.

(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.

(c) Cross reference

For general rule for determination of the amount of gain or loss recognized, see section 1001.