disqualified stock

Defined in 1 place of the United States Code.

For purposes of this subsection, the term “disqualified stock” means—

(A) any stock in the distributing corporation acquired by purchase after October 9, 1990, and during the 5-year period ending on the date of the distribution, and

(B) any stock in any controlled corporation—

(i) acquired by purchase after October 9, 1990, and during the 5-year period ending on the date of the distribution, or

(ii) received in the distribution to the extent attributable to distributions on—

(I) stock described in subparagraph (A), or

(II) any securities in the distributing corporation acquired by purchase after October 9, 1990, and during the 5-year period ending on the date of the distribution.

Source

1994–2014 26 U.S.C. § 355Internal Revenue Code · Distribution of stock and securities of a controlled corporation · for purposes of this section

For purposes of this subsection, the term “disqualified stock” means—

(A) any stock in the distributing corporation acquired by purchase during the 5-year period ending on the date of the distribution, and

(B) any stock in any controlled corporation—

(i) acquired by purchase during the 5-year period ending on the date of the distribution, or

(ii) received in the distribution to the extent attributable to distributions on—

(I) stock described in subparagraph (A), or

(II) any securities in the distributing corporation acquired by purchase during the 5-year period ending on the date of the distribution.

Source

2014–present 26 U.S.C. § 355Internal Revenue Code · Distribution of stock and securities of a controlled corporation · for purposes of this section