Reg. § 1.336-0 Table of contents.
This section lists captions contained in , , , , and .
§ 1.336-1 General principles, nomenclature, and definitions for a section 336(e) election.
(a) Overview.
(1) In general.
(2) Consistency rules.
(b) Definitions.
(1) Seller.
(2) Purchaser.
(3) Target; S corporation target; old target; new target.
(4) S corporation shareholders.
(5) Disposed of; disposition.
(i) In general.
(ii) Exception for disposition of stock in certain section transactions.
(iii) Transactions with related persons.
(iv) No consideration paid.
(v) Disposed of stock reacquired by certain persons.
(6) Qualified stock disposition.
(i) In general.
(ii) Overlap with qualified stock purchase.
(A) In general.
(B) Exception.
(7) 12-month disposition period.
(8) Disposition date.
(9) Disposition date assets.
(10) Domestic corporation.
(11) Section election.
(12) Related persons.
(13) Liquidation.
(14) Deemed asset disposition.
(15) Deemed disposition tax consequences.
(16) 80-percent purchaser.
(17) Recently disposed stock.
(18) Nonrecently disposed stock.
(c) Nomenclature.
§ 1.336-2 Availability, mechanics, and consequences of section 336(e) election.
(a) Availability of election.
(b) Deemed transaction.
(1) Dispositions not described in section or (e)(2).
(i) Old target—deemed asset disposition.
(A) In general.
(B) Gains and losses.
(1) Gains.
(2) Losses.
(i) In general.
(ii) Stock distributions.
(iii) Amount and allocation of disallowed loss.
(iv) Tiered targets.
(3) Examples.
(C) Tiered targets.
(ii) New target—deemed purchase.
(iii) Old target and seller—deemed liquidation.
(A) In general.
(B) Tiered targets.
(iv) Seller—distribution of target stock.
(v) Seller—retention of target stock.
(2) Dispositions described in section or (e)(2).
(i) Old target—deemed asset disposition.
(A) In general.
(1) Old target not deemed to liquidate.
(2) Exception.
(B) Gains and losses.
(1) Gains.
(2) Losses.
(i) In general.
(ii) Stock distributions.
(iii) Amount and allocation of disallowed loss.
(iv) Tiered targets.
(3) Examples.
(C) Tiered targets.
(ii) Old target—deemed purchase.
(A) In general.
(B) Tiered targets.
(C) Application of section , section , and other provisions to old target.
(iii) Seller—distribution of target stock.
(A) In general.
(B) Tiered targets.
(iv) Seller—retention of target stock.
(v) Qualification under section .
(vi) Earnings and profits.
(c) Purchaser.
(d) Minority shareholders.
(1) In general.
(2) Sale, exchange, or distribution of target stock by a minority shareholder.
(3) Retention of target stock by a minority shareholder.
(e) Treatment consistent with an actual asset disposition.
(f) Treatment of target under other provisions of the Internal Revenue Code.
(g) Special rules.
(1) Target as two corporations.
(2) Treatment of members of a consolidated group.
(3) International provisions.
(i) Source and foreign tax credit.
(ii) Allocation of foreign taxes.
(A) General rule.
(B) Taxes imposed on partnerships and disregarded entities.
(iii) Disallowance of foreign tax credits under section .
(h) Making the section election.
(1) Consolidated group.
(2) Non-consolidated/non-S corporation target.
(3) S corporation target.
(4) Tiered targets.
(5) Section election statement.
(i) In general.
(ii) Target subsidiaries.
(6) Contents of section election statement.
(7) Asset Allocation Statement.
(8) Examples.
(i) [Reserved]
(j) Protective section election.
(k) Examples.
§ 1.336-3 Aggregate deemed asset disposition price; various aspects of taxation of the deemed asset disposition.
(a) Scope.
(b) Determination of ADADP.
(1) General rule.
(2) Time and amount of ADADP.
(i) Original determination.
(ii) Redetermination of ADADP.
(c) Grossed-up amount realized on the disposition of recently disposed stock of target.
(1) Determination of amount.
(2) Example.
(d) Liabilities of old target.
(1) In general.
(2) Time and amount of liabilities.
(e) Deemed disposition tax consequences.
(f) Other rules apply in determining ADADP.
(g) Examples.
§ 1.336-4 Adjusted grossed-up basis.
(a) Scope.
(b) Modifications to the principles in .
(1) Purchasing corporation; purchaser.
(2) Acquisition date; disposition date.
(3) Section election; section election; section election.
(4) New target; old target.
(5) Recently purchased stock; recently disposed stock.
(6) Nonrecently purchased stock; nonrecently disposed stock.
(c) Gain recognition election.
(1) In general.
(2) 80-percent purchaser.
(3) Non-80-percent purchaser.
(4) Gain recognition election statement.
(d) Examples.
§ 1.336-5 Effective/applicability date.
[T.D. 9619, 78 FR 28474, May 15, 2013]