Section 997 · Special subchapter C rules

Amended 1 time on record

Applied in 1 court decisions — leading case Cloverleaf Butter Co. v. Patterson, Commissioner of Agriculture & Industries (1942)

Most recently applied in Cloverleaf Butter Co. v. Patterson, Commissioner of Agriculture & Industries (February 1942)

For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation by a DISC or former DISC which is made out of previously taxed income or accumulated DISC income shall—

(1) be treated as a distribution in the same amount as if such distribution of property were made to an individual, and

(2) have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).