[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: 26CFR1.374-3]

[Page 358]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.374-3  Records to be kept and information to be filed.

    (a) Return information. Each railroad corporation a party to a 
section 374(a) reorganization shall furnish a complete statement of all 
facts pertinent to the recognition or nonrecognition of gain or loss in 
connection with the exchange, including:
    (1) A certified copy of the plan of reorganization approved by the 
court in the proceeding, together with a statement showing in full the 
purposes thereof and in detail all transactions incident, or pursuant, 
to the plan;
    (2) A complete statement of the cost or other basis of all property, 
including all stock or securities, transferred incident to the plan;
    (3) A statement of the amount of stock or securities and other 
property or money received in the exchange, including a statement of all 
distributions or other disposition made thereof. The amount of each kind 
of stock or securities or other property shall be stated on the basis of 
the fair market value thereof at the date of the exchange;
    (4) A statement of the amount and nature of any liabilities assumed 
upon the exchange.

The information required by this paragraph shall be filed as a part of 
each railroad corporation's return for its taxable year within which the 
reorganization occurred.
    (b) Permanent records. Permanent records in substantial form must be 
kept by every railroad corporation which participates in a tax-free 
exchange in connection with a section 374(a) reorganization showing the 
cost or other basis of the transferred property and the amount of stock 
or securities and other property or money received (including any 
liabilities assumed upon the exchange), in order to facilitate the 
determination of gain or loss from a subsequent disposition of such 
stock or securities and other property received from the exchange.

[T.D. 6528, 26 FR 401, Jan. 19, 1961]