Page:United States Statutes at Large Volume 78.djvu/131

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

any disti-ibution in liquidation actually made in such taxable year had not been made)". (g) O N E - M O N T H LIQUIDATIONS.—Section 333 (relating to election as to recognition of gain in certain liquidations) is amended by adding at the end thereof the following new subsection: "(g)

89

68A Stat. 103. 26 USC 333.

SPECIAL RULE. — "(1) LIQUIDATIONS BEFORE JANUARY

i. loci.—Li the case of a lixjuidation occurring before January 1, 1967, of a corporation referred to in paragraph (3)— " (A) the date 'December 31, 1953' referred to in subsections (e)(2) and (f)(1) shall be treated as if such date were 'December 31, 1962', and " (B) in the case of stock in such corporation held for more than 6 months, the term 'a dividend' as used in subsection (e)(1) shall be treated as if such term were 'long-terni capital gain'. Subparagraph (B) shall not apply to any earnings and profits to which the corporation succeeds after December 31, 1963, pursuant to any corporate reorganization or pursuant to ajiy liquidation to which section 332 applies, except earnings and profits which on December 31, 1963, constituted earnings and profits of a corporation referred to in paragraph (3), and except earnings and profits which were earned after such date by a corporation referred to in paragraph (3). "(2)

26 USC 332.

LIQUIDATIONS AFTER DECEMBER 3 I, IOOG.—

" (A) IN GENERAL.—In the case of a liquidation occurring after December 31, 1966, of a corporation to which this subparagraph applies— "(i) the date 'December 31, 1953' referred to in subsections (e)(2) and (f)(1) shall be treated as if such date were 'December 31, 1962', and "(ii) so much of the gain recognized under subsection (e)(1) as is attributable to the earnings and profits accumulated after February 28, 1913, and before January 1, 1967, shall, in the case of stock in such corporation held for more than 6 months, be treated as long-term capital gain, and only the remainder of such gain shall be treated as a dividend. (Mause (ii) shall not apply to any earnings and profits to which the corporation succeeds after December 31, 1963, pursuant to any coiporate reorganization or pursuant to any liciuidation to which section 332 applies, except earnings and profits which on December 31, 1963, constituted earnings and profits of a corporation referred to in paragraph (3), and except earnings and profits which were earned after such date by a corporation referred to in paragraph (3). " (B) CoRW)RATiONS TO WHICH APPLICABLE.—Subparagraph (A) shall apply only with respect to a corporation which is referred to in paragraph (3) and which— " (i) on January 1, 1964, owes qualified indebtedness (as defined in section 545(c)), "(ii) before January 1, 1968, notifies the Secretary or his delegate that it may wish to have subparagraph (A) apply to it and submits such information as may be reuired by regulations prescribed by the Secretary or his elevate, and "(lii) liquidates before the close of the taxable year in which such corporation ceases to owe such qualified indebtedness or (it earlier) the taxable year referred to in subparagraph (C).

a

Post, p. 90.

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