[Code of Federal Regulations]
[Title 26, Volume 4]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.341-1]

[Page 154]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.341-1  Collapsible corporations; in general.

    Subject to the limitations contained in Sec. 1.341-4 and the 
exceptions contained in Sec. 1.341-6 and Sec. 1.341-7(a), the entire 
gain from the actual sale or exchange of stock of a collapsible 
corporation, (b) amounts distributed in complete or partial liquidation 
of a collapsible corporation which are treated, under section 331, as 
payment in exchange for stock, and (c) a distribution made by a 
collapsible corporation which, under section 301(c)(3), is treated, to 
the extent it exceeds the basis of the stock, in the same manner as a 
gain from the sale or exchange of property, shall be considered as 
ordinary income.

[T.D. 7655, 44 FR 68459, Nov. 29, 1979]