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TITLE 26-INTERNAL REVENUE CODE (1) under the law applicable to the tax- able year In which the distribution Is made, is a personal holding company (as defined in section 542), or (it) for the taxable year in respect of which the distribution is made under sec- tion 563(b) (relating to dividends paid after the close of the taxable year), or jec- tion 547 (relating to deficiency dividends), or the corresponding provisions of prior law, is a personal holding company under the law applicable to b1ich taxable year, the term "dividend" also means any distri- bution of property (whether or not a divi- dend as defined in subsection (a)) made by the corporation to its shareholders, to the extent of its undistributed personal holding company income (determined under section 545 without regard to distributions under this paragraph) for such year. (B) For purposes of subparagraph (A), tile term "distribution of property" includes a distribution in complete liquidation occur- ring within 24 months after the adoption of a plan of liquidation, but-- (!) only to the extent of the amounts ditributed to distributees other than cor- porate shareholders, and (ii) only to the extent that the corpora- tion designates such amounts as a divi- dend distribution and duly notifies such distributees of such designation, under regulations pren;cribed by the Secretary, but (i11) not in excess of the sum of such dis- tributees' allocable share of the undistri- buted personal holding company income for such year, computed without regard to this subparagraph or section 562(b). (3) Deficiency dividend distributions by a real estate investment trust The term "dividend" also means any distri- bution of property (whether or not a dividend as defined in subsection (a)) which consti- tutes a "deficiency dividend" as defined in section 859(d). (Aug. 16, 1954, ch. 736, 68A Stat. 98; Mar, 13, 1956, ch. 83, § 5(1), 70 Stat. 49; Feb. 26, 1964, Pub. L. 88-272, title II, § 225(f)(1), 78 Stat. 87; Oct. 4, 1976, Pub. L. 94-455, title XVI, § 1601(d), title XIX, § 1906(b)(13)(A), 90 Stat. 1746, 1834.) AMENDMENTS 1976-Subsec. (b)(2)(B)(ii). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (b)(3). Pub. L. 94-455, § 1601(d), added subsec. (b)(3). 1964-Subsec. (b)(2). Pub. L. 88-272 inserted the definition of "distribution of property". 1956-Subsec. (b)(1). Act Mar. 13, 1956, substituted "subchapter L" for "sections 803(e), 821(a)(2), and 832(c)(11)". ErTcrziv DATE OF 1976 AMENrmENT For effective date of subsec. (b)(3) added by section 1601(d) of Pub. L. 94-455, see section 1608(a) of Pub. L. 94-455, set out as an Effective Date note under section 859 of this title. EFFECTIVE DATE OF 1964 AxemaETr Section 225() of Pub. L. 88-272 provided that: "(1) The amendments made by this section [adding section 1022 and redesignating section 1022 as 1023, amending sections 316, 331, 333, 381, 541, 542. 543, 544, 545, 551, 553, 554, 562, 856, 1016, 1361, 6501 and the analysis preceding section 1011, and enacting provi- sions set out as a note undcr section 333 of this title] (other than by subsections (c)(1), f), (g), and (J) [adding section 1022, redeslgnating section 1022 as 1023, amending sections 316, 331, 333, 542(c)(2), 551, 562, 1016, and the analysis preceding section 1011 of this title]) shall apply to taxable years beginning after December 31, 1963. "(2) The amendment made by subsection (c)(1) [to section 542(c)(2) of this title] shall apply to taxable years beginning after October 16, 1962. "(3) The amendments made by subsections if) and (g) [to sections 316, 331, 333, 551 and 562 of this title] shall apply to distributions made in any taxable year of the distributing corporation beginning after Decem- ber 31, 1963. "(4) The amendments made by subsection (j) [adding section 1022, redesignating section 1022 as 1023 amending section 1016 and the analysis preceding section 1011 of this title] shall apply in respect of de. cedents dying after December 31, 1963. "(5) Subsection (h) [set out as a note under section 333 of this title] shall apply to taxable years beginning after December 31, 1963." EFFECTIVE DATE OF 1956 AmENDMENT Amendment by act Mar. 13, 1956, applicable only to taxable years beginning after Dec. 31, 1954, see section 6 of act Mar. 13, 1956, set out as an Effective Date of 1956 Amendment note under section 821 of this title. CRoss REFERENcEs Consent dividend as not including an amount speci- fied in a consent which would not constitute a divi- dend as defined in this section, see section 565 of this title. Dividends received from certain foreign corpora- tions, deduction in amount equal to percent of divi- dends received out of earnings and profits specified In subsection (a)(1) of this section, see section 245 of this title. Liquidc.tions before Jan. 1, 1966, see section 225(h) of Pub. L. 88-272, set out as a note under section 333 of this title. Rules applicable in determining dividends eligible for dividends paid credit deduction, see section 562 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in ,.ctions 245, 301, 331, 562, 565, 959, 1373, 1375, 6042 of this title; title 46 sec- tion 1177. § 317. Other definitions (a) Property For purposes of this part, the term "proper- ty" Laeans money, securities, and any other property; except that such term does not in- clude stock in the corporation making the dis- tribution (or rights to acquire such stock). (b) Redemption of stock For purposes of this part, stock shall be treat- ed as redeemed by a corporation if the corpora- tion acquires its stock from a shareholder in ex- change for property, whether or not the stock so acquired is cancelled, retired, or held as trea- sury stock, (Aug. 16, 1954, ch. 736, 68A Stat. 99.) CRoss REFERENCES Dispositions other than redemptions, see section 306 of this title. 71-999 0 - 78 - 18 (Vol. 7) Page 245