26 U.S. Code § 385 - Treatment of certain interests in corporations as stock or indebtedness
The Secretary is authorized to prescribe such regulations as may be necessary or appropriate to determine whether an interest in a corporation is to be treated for purposes of this title as stock or indebtedness (or as in part stock and in part indebtedness).
The characterization (as of the time of issuance) by the issuer as to whether an interest in a corporation is stock or indebtedness shall be binding on such issuer and on all holders of such interest (but shall not be binding on the Secretary).
Except as provided in regulations, paragraph (1) shall not apply to any holder of an interest if such holder on his return discloses that he is treating such interest in a manner inconsistent with the characterization referred to in paragraph (1).
1992—Subsec. (c). Pub. L. 102–486 added subsec. (c).
1989—Subsec. (a). Pub. L. 101–239 inserted “(or as in part stock and in part indebtedness)” before period at end.
1976—Subsec. (a). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
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- Bad Debts : 2013-06-07
- Debt v. Equity : 2013-06-07
- Exceptions : 2012-07-27
- Debt v. Equity : 2012-07-27
- New Financial Products : 2012-06-29
- New Financial Products : 2011-11-25
- New Financial Products : 2011-07-15
- New Financial Products : 2011-05-20
- New Financial Products : 2010-06-25
- New Financial Products : 2009-08-07
- Debt v. Equity Issues : 2009-08-07
- Debt v. Equity : 2009-06-19
- Adjustable Rate Preferred Stock : 2009-06-19
- Foreign Personal Holding Company Income : 2008-12-05
- Hybrid Instruments : 2008-12-05
- Definition of U.S. shareholder : 2008-12-05
- Treatment of Related Person Factoring Income : 2008-12-05
- Trade or Business Deductible v. Not Deductible : 2008-12-05
- Definitions : 2006-12-15
- Deductions For Losses : 2006-12-15
- Fixed Investment Trusts : 2006-12-15
- Other Instruments : 2006-12-15
- Definitions : 2005-03-25
- Tax Treatment of Stripped Bonds : 2005-03-25
- Fixed Investment Trusts : 2005-03-25
- Other Instruments : 2005-03-25
- Stripped Preferred Stock : 2005-03-25
- Debt v. Equity : 2004-05-07
- Debt v. Equity : 2002-08-30
- Debt v. Equity : 2001-11-09
- Gross Income v. Not Gross Income : 2001-10-19
- Bond Issuance Premium : 2001-10-19
- Yield To Maturity : 2001-10-19
- Miscellaneous Provisions : 2001-10-19
- Constant Interest Rate Economic Accrual : 2001-10-19
- Put Call Options : 2001-10-19
- Debt v. Equity : 2001-08-31
- Determination of Amount of Original Issue Discount : 2001-08-31
- Related Foreign Person : 2001-08-31
- Earnings Invested in Excess Passive Assets : 2001-08-24
- Straddles : 2001-07-27
- New Financial Products : 2001-07-27
- Debt v. Equity Issues : 2001-07-27
- Debt v. Equity : 2001-06-29
- Conduit Arrangements : 2000-08-25
- Other : 2000-04-07
- Debt v. Equity : 2000-04-07
- Debt v. Equity : 2000-03-10
- Straddles : 1999-10-08
- Interest and Carrying Costs - Straddles : 1999-10-08
- New Financial Products : 1999-10-08
- Debt v. Equity Issues : 1999-10-08
- Transfer to Corporation Controlled by Transferor : 1999-07-23
- Debt v. Equity : 1999-07-23
- Debt v. Equity : 1999-06-04
- Determination of Amount of Original Issue Discount : 1999-04-02
- Issuer's Classification : 1999-04-02
- Installment Purchases : 1999-03-12
- Debt v. Equity : 1999-03-12
- New Financial Products : 1999-03-12
- Issuer's Classification : 1999-03-12
- Factors : 1999-03-12
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