section 306 stock

(3) Certain stock acquired in section 351 exchange The term “section 306 stock” also includes any stock which is not common stock acquired in an exchange to which section 351 applied if receipt of money (in lieu of the stock) would have been treated as a dividend to any extent. Rules similar to the rules of section 304(b)(2) shall apply— (A) for purposes of the preceding sentence, and (B) for purposes of determining the application of this section to any subsequent disposition of stock which is section 306 stock by reason of an exchange described in the preceding sentence.

Source

26 USC § 306(c)(3)

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Scoping language

None identified, default scope is assumed to be the parent (subpart A) of this section.

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