26 USC 997: Special subchapter C rules
Text contains those laws in effect on November 21, 2024
From Title 26-INTERNAL REVENUE CODESubtitle A-Income TaxesCHAPTER 1-NORMAL TAXES AND SURTAXESSubchapter N-Tax Based on Income From Sources Within or Without the United StatesPART IV-DOMESTIC INTERNATIONAL SALES CORPORATIONSSubpart B-Treatment of Distributions to Shareholders
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§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).
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