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.
Note that the IRS often titles documents in a very plain-vanilla, duplicative way. Do not assume that identically-titled documents are the same, or that a later document supersedes another with the same title. That is unlikely to be the case.
Release dates appear exactly as we get them from the IRS. Some are clearly wrong, but we have made no attempt to correct them, as we have no way guess correctly in all cases, and do not wish to add to the confusion.
We truncate results at 20000 items. After that, you're on your own.
- 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
- Trade or Business (Deductible v. Not Deductible) : 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
- Definitions : 2006-12-15
- Deductions For Losses : 2006-12-15
- Tax Treatment of Stripped Bonds : 2006-12-15
- Fixed Investment Trusts : 2006-12-15
- Other Instruments : 2006-12-15
- Stripped Preferred Stock : 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
- Miscellaneous Provisions : 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
- Interest and Carrying Costs - 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