Current through Pub. L. 119-100Open in workspace

§ 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).

(Added Pub. L. 92–178, title V, § 501, Dec. 10, 1971, 85 Stat. 549.)

Operative text only. Editorial notes, amendment history, and effective dates: official OLRC text of § 997

Source: decipher.legal/usc/26/997 · Internal Revenue Code, current through Pub. L. 119-100 (OLRC XML of 2026-04-17)