[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1367-0]

[Page 744]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1367-0  Table of contents.

    The following table of contents is provided to facilitate the use of 
Sec. Sec. 1.1367-1 through 1.1367-3.

   Sec. 1.1367-1 Adjustments to basis of shareholder's stock in an S 
                              corporation.

    (a) In general.
    (1) Adjustments under section 1367.
    (2) Applicability of other Internal Revenue Code provisions.
    (b) Increase in basis of stock.
    (1) In general.
    (2) Amount of increase in basis of individual shares.
    (c) Decrease in basis of stock.
    (1) In general.
    (2) Noncapital, nondeductible expenses.
    (3) Amount of decrease in basis of individual shares.
    (d) Time at which adjustments to basis of stock are effective.
    (1) In general.
    (2) Adjustment for nontaxable item.
    (3) Effect of election under section 1377(a)(2) or Sec. 1.1368-
1(g)(2).
    (e) Ordering rules for taxable years beginning before January 1, 
1997.
    (f) Ordering rules for taxable years beginning on or after August 
18, 1998.
    (g) Elective ordering rule.
    (h) Examples.
    (i) [Reserved]
    (j) Adjustments for items of income in respect of a decedent.

   Sec. 1.1367-2 Adjustments to basis of indebtedness to shareholder.

    (a) In general.
    (b) Reduction in basis of indebtedness.
    (1) General rule.
    (2) Termination of shareholder's interest in corporation during 
taxable year.
    (3) Multiple indebtedness.
    (c) Restoration of basis.
    (1) General rule.
    (2) Multiple indebtedness.
    (d) Time at which adjustments to basis of indebtedness are 
effective.
    (1) In general.
    (2) Effect of election under section 1377(a)(2) or Sec. 1.1368-
1(g)(2).
    (e) Examples.

           Sec. 1.1367-3 Effective date and transition rule.

[T.D. 8508, 59 FR 15, Jan. 3, 1994, as amended by T.D. 8852, 64 FR 
71648, Dec. 22, 1999]