Section 331
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1 1966 except for certain liquidations to which section 332 of this title applies.
Section 331. 331 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. 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. B designated operations 1 in general the secretary of defense shall designate the operations for which support may be.
To conduct or support programs providing training and equipment to national security forces of foreign countries for the purpose of building capacity of partner nations to conduct one or more of the following activities. 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. Section 331 friendly foreign countries.
If the distributee of a distribution described in paragraph 1 is a controlled foreign corporation as defined in section 957 then notwithstanding paragraph 1 or subsection a such distribution shall be treated as a distribution to which section 331 applies. Section 331 contains rules governing the extent to which gain or loss is recognized to a shareholder receiving a distribution in complete or partial liquidation of a corporation. For a complete liquidation section 331 a 1 provides for exchange treatment and section 1101 c requires the recognition of gain or loss on the sale or exchange of property.
Authority to provide support for conduct of operations a authority the secretary of defense may provide support to friendly foreign countries in connection with the conduct of operations designated pursuant to subsection b. Under section 331 a 1 it is provided that amounts distributed in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock. Section 333 authority to build capacity.
The corporate shareholder s tax treatment is governed by the general rule of section 331.
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