26 U.S.C. § 997

Current through P.L. 118-47 (published on www.congress.gov on 03/23/2024)

Section 997 - Special subchapter C rules

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-

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

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

26 U.S.C. § 997

Added Pub. L. 92-178, title V, §501, Dec. 10, 1971, 85 Stat. 549.

corporation

The term "corporation" includes associations, joint-stock companies, and insurance companies.