§311 — Taxability of corporation on distribution

The 1984 temporary regulation was in force until superseded by the final regulation, section 1.267(f)-1, Income Tax Regs., July 18, 1995.

Section 311 is inapplicable.

We need not decide which basis applies because in either scenario Jaussaud Enterprises would realize the same amount of income.

We determined that the Commissioner could collect $12,000 from the wife pursuant to section 311(a) of the Internal Revenue Code of 1939 (the predecessorto section 6901).

We determined that the Commissioner could collect $12,000 from the wife pursuant to section 311(a) of the Internal Revenue Code of 1939 (the predecessorto section 6901).

We determined that the Commissioner could collect $12,000 from the wife pursuant to section 311(a) of the Internal Revenue Code of 1939 (the predecessorto section 6901).

We determined that the Commissioner could collect $12,000 from the wife pursuant to section 311(a) of the Internal Revenue Code of 1939 (the predecessorto section 6901).

that, in substance, KTVU, Inc .'siassumed gratuitous transfer of partnership interests in KTVU Partnership .to the family partnerships constituted a constructive dividend from petitioner to the shareholder trusts causing petitioner t o .recognize $60 .5 million of unrealized-gain pursuant to section 311(b).

TBS and respondent jointly moved to sever from the rest of the TBS case what will hereafter be described as the section 311 and section 267 issues.

727, 731 (1951) (construing section 311 ofthe Internal Revenue Code of 1939, predecessor to section 6901); see also Alexander v.

Because we were unable to answer with certainty the question of what property interest had to be valued under former section 311(d) after examining the statutory language, we examined the legislative history and concluded that “the purpose underlying section 311(d) was to tax the appreciation in value that had occurred while the distributing corporation held the property and to prevent a corporation from avoiding tax on the inherent gain by distributing such property to its shareholders.” Pope &

s attributable to professional goodwill generated by and belonging to its physician-shareholders. We reject the Wells report because it did not value the property distributed to petitioner’s shareholders as of the date of distribution as required by section 311. Instead, the Wells report valued “selected” assets of petitioner as of October 29, 1993, the day before the Clinpath stock was distributed to petitioner’s shareholders and then sold to NHL pursuant to a prearranged deal. The Wells report

n deal with each other in making and receiving the payment. Cf. sec. 1.301-l(c), Income Tax Regs, (limiting dividend treatment to amounts paid by a corporation to a shareholder in his capacity as such); sec. 1.311-1(e)(1), Income Tax Regs, (applying sec. 311 to distributions to shareholders made by reason of the corporation-shareholder relationship and not to transactions between a corporation and a shareholder in his capacity as debtor, creditor, employee, or vendee, where the fact that the dis

6901 To use the courts to enforce a liability, the Government, like any other creditor, must establish a basis in law for that liability. Section 6901 does not provide any such basis. See Commissioner v. Stern, 357 U.S. 39, 42 (1958) (interpreting section 311, I.R.C. 1939, the predecessor of section 6901). Section 6901(a) merely establishes the deficiency procedure as a mechanism for collecting certain existing, enumerated liabilities. One of the enumerated liabilities is the liability of a tra

2272, changed the phrase “as if the property distributed had been sold at the time of the distribution” to “as if such property were sold to the distributee at its fair market value.” The only apparent reason for the 1986 change to section 311 was to conform its language with that of section 336(a), as amended by section 631(a) of the Tax Reform Act of 1986.

No question was raised as to whether, as only a beneficiary (and not the recipient) of the husband’s payment of the debt, the wife could be a transferee within the meaning of section 311 of the Internal Revenue Code of 1939.

Respondent now contends that the Corporation is deemed to have recognized income under section 311 in the amount of $196,532 due to the sale of the Property ($620,000 FMV less the Corporation's adjusted basis).

Respondent now contends that the Corporation is deemed to have recognized income under section 311 in the amount of $196,532 due to the sale of the Property ($620,000 FMV less the Corporation's adjusted basis).

Thus, we held, the transfer was subject to section 311(d)(1), and petitioner had to recognize gain on the transfer based on the fair market value of each Transferred Asset.

V 1946). This meant that the codification due July 1, 1943, would consist of documents effective on June 1, 1943. The second change made by the 1942 amendment to the Federal Register Act was to temporarily suspend the requirement that documents be codified every five years. The reason for this suspension related to the American part

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor of section 6901).

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor of section 6901).

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor of section 6901).

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor of section 6901).

s portion ofarticle 6.7 is reasonably regarded as a limiting provision, confining the permissible subset of amendments to those that would not be "inconsistent with the Conservation Pur- poses." This text tracks the Secretary's regulation governing the "enforceable in perpetuity" requirement, which provides that any retained interest "must be subject to legally enforceable restrictions * * * that will prevent uses ofthe retained interest inconsistent with the conservation purposes ofthe donation

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor oftoday's section 6901).

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor oftoday's section 6901).

39, 42 (1958) (addressing section 311 ofthe Internal Revenue Code of 1939, the predecessor oftoday's section 6901).

Section 311 Section 311(b)(1) generallyprovides that ifa corporation distributes appreciated assets to a shareholder, the corporation recognizes gain as ifthe propertywere sold to the shareholder at its fair marketvalue. Gain is recognized to the extentthat the property's fair market value exceeds the corporation's adjusted basis. See id. - 16 - [

Section 311 Section 311(b)(1) generallyprovides that ifa corporation distributes appreciated assets to a shareholder, the corporation recognizes gain as ifthe propertywere sold to the shareholder at its fair marketvalue. Gain is recognized to the extentthat the property's fair market value exceeds the corporation's adjusted basis. See id. - 16 - [

Section 311 Section 311(b)(1) generallyprovides that ifa corporation distributes appreciated assets to a shareholder, the corporation recognizes gain as ifthe propertywere sold to the shareholder at its fair marketvalue. Gain is recognized to the extentthat the property's fair market value exceeds the corporation's adjusted basis. See id. - 16 - [

Section 311 Section 311(b)(1) generallyprovides that ifa corporation distributes appreciated assets to a shareholder, the corporation recognizes gain as ifthe propertywere sold to the shareholder at its fair marketvalue. Gain is recognized to the extentthat the property's fair market value exceeds the corporation's adjusted basis. See id. - 16 - [

h. 24 with UFTA ch. 24. TUFTA sec. 24.012 provides: "This chapter shall be applied and construedto effectuate its general purpose to make uniformthe law with respect to the subject ofthis chapter among states enacting it." Moreover, Tex. Gov't Code sec. 311.028 (West 2013) instructs that "[a] uniform act included in a code shall be construed to effect its general purpose to make uniform the law ofthose states that enact it." Finally, the Supreme Court ofTexas has held that in interpreting TUFTA,

408. The initial amendment, which provided an exemption from tax for certain death and disability benefits, was later (continued...) - 17 - legislative history is sparse. What history there is recognizes two purposes: to “‘avoid the possibility of the Veterans’ Administration * * * being placed in the position of a collection ag

assert that long-term capital gains are taxed at a maximum 20-percent rate; therefore, the entire gain from the sale of their investment property should be taxed at only 20 percent. While the Taxpayer Relief Act of 1997 (1997 Act), Pub. L. 105-34, sec. 311, 111 Stat. 831, did reduce the maximum capital gains rate on net capital gains from 28 percent to 20 percent, petitioners’ assertion fails to take into consideration all of the relevant changes made by the 1997 Act. The 1997 Act made several

5, 1987),13 respondent determined that the gain realized on a consolidated subsidiary’s distribution of its parent’s stock to its parent in a section 311 transaction resulted in a deferral of gain pursuant to section 1.1502-14(c)(1), Income Tax Regs.

5, 1987), respondent determined that the gain realized on a consolidated subsidiary’s distribution of its parent’s stock to its parent in a section 311 transaction resulted in a deferral of gain pursuant to section 1.1502-14(c)(l), Income Tax Regs.

were denied the opportunity to use the presumption where the Commissioner challenged the status of the activity before the end of the presumption period. As a result, section 183(e) was enacted by the Revenue Act of 1971 (1971 Act), Pub. L. 92-178, sec. 311, 85 Stat. 497, 525-526. Paragraph (1) of section 183(e) permits a taxpayer to elect to delay the determination of whether the section 183(d) presumption applies. Paragraph (2) of section 183(e) applies the presumption to all of the years in t

(a), a procedure is provided to collect from a transferee of assets a transferor's tax liability if the transferee is liable at law or in equity for the transferor's tax liability. See Commissioner v. Stern, 357 U.S. 39, 42 (1958) (interpreting then sec. 311, a predecessor to sec. 6901); Stansbury v. Commissioner, 104 T.C. 486, 489-490 (1995), affd. 3 At trial, respondent's agent testified that Hanna PC's transferee liability under sec. 6901 should be increased to $28,648. Respondent, however, h

d have been required under the Federal income tax law in effect on the valuation date to recognize gains on its assets if it had liquidated and distributed those assets, sec. 336(a), made a nonliquidating distribution of one or more of those assets, sec. 311, or sold or otherwise disposed of those assets, sec. 1001(c), it could have avoided the tax on such gains.13 That is because, according to respondent, ADDI&C could have converted to S corporation status and retained its assets for 10 years f

Vendig did not receive, directly or indirectly, any property of Sales, she was not a transferee of Sales within the meaning of section 311 of the Internal Revenue Code of 1939, the predecessor to section 6901.

d have been required under the Federal income tax law in effect on the valuation date to recognize gains on its assets if it had liquidated and distributed those assets, sec. 336(a), made a nonliquidating distribution of one or more of those assets, sec. 311, or sold or otherwise disposed of those assets, sec. 1001(c), it could have avoided the tax on such gains. That is because, according to respondent, ADDI&C could have converted to S corporation status and retained its assets for 10 years fro

ating Co. v. Helvering, 296 U.S. 200 (1935). The holding of that opinion allowed a corporation to avoid recognition of gain on the distribution of appreciated property to its shareholders. In 1954, Congress codified the General Utilities doctrine in sec. 311. Pursuant to the Tax Reform Act of 1986 (TRA), Pub. L. 99-514, sec. 631(a), (c), 100 Stat. 2085, 2269, corporations are now required to recognize gain on the distribution of appreciated property except in certain limited circumstances. Secs.

39, 45 (1958) (interpreting section 311 of the Internal Revenue Code of 1954, a predecessor to section 6901).