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TITLE 26-INTERNAL REVENUE CODE (b) Cross references For provisions to which the rules contained in subsec- tion (a) apply, see- (1) section 302 (relating to redemption of stock); (2) section 304 (relating to redemption by related cor. porations); (3) section 306(b)(l)(A) (relating to disposition of sec- tion 306 stock); (4) section 334(b)(3)(C) (relating to basis of property received In certain liquidations of subsidiaries'); (5) section 382(a)(3) (relating to special limitations on net operating loss carryovers); (6) section 856(d) (relating to definition of rents from real property in the case of real estate investment trusts); (7) section 958(b) (relating to constructive ownership rules with respect to controlled foreign corporations); and (8) section 6038(d)(1) (relating to information with re- spect to certain foreign corporations). (Aug. 16, 1954, ch. 736, 68A Stat, 99; Sept. 14, 1960, Pub. L. 86-779, § 10(h), 74 Stat. 1009; Oct. 16, 1962, Pub. L. 87-834, § 20(d)(1), 76 Stat. 1063; Aug. 31, 1964, Pub. L. 88-554, § 4(a), (b)(2), 78 Stat. 762, 763.) AMENDMENTS 1964-Subset. (a). Pub. L. 88-554, § 4(a), eliminated sidewisi attribution by providing that when stock is attributed to a partnership, estate, trust, or corpora- tion from a partner, shareholder, or beneficiary, this stock is not to be attributed again to another partner, beneficiary, or shareholder. Subsec. (b). Pub. L. 88-554, § 4(b)(2), added para- graph (7), and redesignated former paragraph (7) as (8). 1962-Subsec. (b). Pub. L. 87-834 added paragraph (7). 1960-Subsec. (b). Pub. L. 86-779 added paragraph (6). EFFECTIVE DATE OF 1964 AMENDMENT Section 4(c) of Pub. L. 88-554 provided that: "The amendments made by this section (to sections 304, 318, 382, 856, 958, and 6038 of this title] shall take effect on the date of the enactment of this Act, [Aug. 31, 1964], except that, for purposes of sections 302 and 304 of the Internal Revenue Code of 1954 [sections 302 and 304 of this title], such amendments shell not apply with respect to distributions in payment for stock acquisitions or redemptions, if such acquisitions or redemptions occurred before the date of the enact- ment of this Act [Aug. 31, 1964]." EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86-779 applicable with re- spect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86-779, set out as an Effective Date note under sec- tion 856 of this title. CROSS REFERENCES Basis of property received in liquidations, purchase defined, see section 334 of this title. Distributions in redemption of stock, this section to apply in determining ownership, see section 302 of this title. Redemption through use of related corporations, this section to apply to determining control, see sec- tion 304 of this title. Special limitations on net operating loss carryovers, this section to apply in determining ownership of stock, see section 382 of this title. Termination of shareholder's interest, this section to apply, see section 306 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 103, 129, 302, 304, 306, 334, 367, 382, 545, 856, 958, 995, 1379, 6038 of this title. PART II-CORPORATE LIQUIDATIONS Subpart A. Effects of recipients. B. Effects on corporation. C. Collapsible corporations. D. Definition. AMENDMENTS 1976-Pub. L. 94-455, title XIX, § 1901(b)(12)(B), Oct. 4. 1976, 90 Stat. 1795, struck out in table of Sub- parts for Part II of Subchapter C of Chapter 1 in Sub- part (C) "; foreign personal holding companies" fol- lowing "corporations". PART REFrmEM TO IN OTHER SECTIONS This part is referred to in section 306 of this title. SUBPART A-EFFECTS ON RECIPIENTS Sec. 331. Gain or loss to shareholder in corporate liquida- tions. 332. Complete liquidations of subsidiaries. 333. Election as to recognition of gain in certain liqui- dations. 334. Basis of property received in liquidations. § 331. Gain or loss to shareholders In corporate liqul. dations (a) General rule (1) Complete liquidations Amounts distributed in complete liquida- tion of a corporation shall be treated as in full payment in exchange for the stock. (2) Partial liquidations Amounts distributed in partial liquidation of a corporation (as defined in section 346) shall be treated as in part or full payment in exchange for the stock. (b) Nonapplication of section 301 Section 301 (relating to effects on share- holder 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 partial or complete liquidation. (e) Cross reference For general rule for determination of the amount of gain or loss recognized, see section 1001. (Aug. 16, 1954, ch. 736, 68A Stat. 101; Feb. 26, 1964, Pub. L. 88-272, title II, § 225(f)(2), 78 Stat. 88; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(b)(28)(A), 90 Stat. 1799.) AMENDMENTS 1976-Subsec. (c). Pub. L. 94-455 substituted "refer- ence" for "references" in subsec. catchline and struck out cross reference relating to general rule for deter- mination of the amount of gain or loss to the distribu- tee and substituted "1001" for "1002". 1964-Subsec. (b). Pub. L. 88-272 inserted "(other than a distribution referred to in paragraph (2)(B) of section 316(b))". EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (c) by section 1901(b)(28)(A) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to distribu- tion made in any taxable year of the distributing ;r- Page 247 § 331