(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 (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
1982—Subsec. (a). Pub. L. 97–248, § 222(a), substituted provisions that 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 for provisions that, in complete liquidations, amounts distributed shall be treated as in full payment in exchange for the stock, while amounts distributed in partial liquidation shall be treated as in part or full payment in exchange for the stock.
Subsec. (b). Pub. L. 97–248, § 222(e)(1)(B), struck out “partial or” before “complete liquidation”.
1976—Subsec. (c). Pub. L. 94–455substituted “reference” for “references” in heading and struck out cross reference relating to general rule for determination of the amount of gain or loss to the distributee and substituted “section
1001” for “section
1964—Subsec. (b). Pub. L. 88–272inserted “(other than a distribution referred to in paragraph (2)(B) of section
Effective Date of 1982 Amendment
Amendment by Pub. L. 97–248applicable to distributions after Aug. 31, 1982, with exceptions for certain partial liquidations, see section 222(f) ofPub. L. 97–248, set out as a note under section
302 of this title.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) ofPub. L. 94–455, set out as a note under section
2 of this title.
Effective Date of 1964 Amendment
Amendment by Pub. L. 88–272applicable to distribution made in any taxable year of the distributing corporation beginning after Dec. 31, 1963, see section 225(l) ofPub. L. 88–272, set out as a note under section
316 of this title.
Liquidations Before January 1, 1966
Pub. L. 88–272, title II, § 225(h),Feb. 26, 1964, 78 Stat. 90, provided that in the case of corporations referred to in former subsec. (g)(3) of this section the amendments made by section 225 ofPub. L. 88–272do 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. 1, 1966, except for certain liquidations to which section
332 of this title applies.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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