26 U.S.C. § 997Chapter 1

§997. Special subchapter C rules

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Verbatim text below is from the United States Code (GovInfo), a public-domain U.S. government work.

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§997. Special subchapter C rules

For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation by a DISC or former DISC which is made out of previously taxed income or accumulated DISC income shall—

(1) be treated as a distribution in the same amount as if such distribution of property were made to an individual, and

(2) have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).

Last amended: December 31, 2024

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