collapsible corporation
Defined in 1 place of the United States Code.
For purposes of this section, the term “collapsible corporation” means a corporation formed or availed of principally for the manufacture, construction, or production of property, for the purchase of property which (in the hands of the corporation) is property described in paragraph (3), or for the holding of stock in a corporation so formed or availed of, with a view to—
(A) the sale or exchange of stock by its shareholders (whether in liquidation or otherwise), or a distribution to its shareholders, before the realization by the corporation manufacturing, constructing, producing, or purchasing the property of 2/3 of the taxable income to be derived from such property, and
(B) the realization by such shareholders of gain attributable to such property.
Source
- 1994–present26 U.S.C. § 341Internal Revenue Code · Repealed. Pub. L. 10827, title III, 302(e)(4)(A), May 28, 2003, 117 Stat. 763] · for purposes of this section