26 C.F.R. § 1.1368-0

Current through October 31, 2024

Section 1.1368-0 - Table of contents

The following table of contents is provided to facilitate the use of §§ 1.1368-1 through 1.1368-4 .

§ 1.1368-1 Distributions by S corporations.

(a) In general.

(b) Date distribution made.

(c) S corporation with no earnings and profits.

(d) S corporation with earnings and profits.

(1) General treatment of distribution.

(2) Previously taxed income.

(e) Certain adjustments taken into account.

(1) Taxable years beginning before January 1, 1997.

(2) Taxable years beginning on or after August 18, 1998.

(f) Elections relating to source of distributions.

(1) In general.

(2) Election to distribute earnings and profits first.

(i) In general.

(ii) Previously taxed income.

(iii) Corporation with subchapter C and subchapter S earnings and profits.

(3) Election to make a deemed dividend.

(4) Election to forego previously taxed income.

(5) Time and manner of making elections.

(i) For earnings and profits.

(ii) For previously taxed income and deemed dividends.

(iii) Corporate statement regarding elections.

(iv) Irrevocable elections.

(g) Special rule.

(1) Election to terminate year under § 1.1368-1(g)(2) .

(2) Election in case of a qualifying disposition.

(i) In general.

(ii) Effect of the election.

(iii) Time and manner of making election.

(iv) Coordination with election under section 1377(a)(2).

§ 1.1368-2 Accumulated adjustments account (AAA).

(a) Accumulated adjustments account.

(1) In general.

(2) Increases to the AAA.

(3) Decreases to the AAA.

(i) In general.

(ii) Extent of allowable reduction.

(iii) Decrease to the AAA for distributions.

(4) Ordering rules for the AAA for taxable years beginning before January 1, 1997.

(5) Ordering rules for the AAA for taxable years beginning on or after August 18, 1998.

(b) Distributions in excess of the AAA.

(1) In general.

(2) Amount of the AAA allocated to each distribution.

(c) Distribution of money and loss property.

(1) In general.

(2) Allocating the AAA to loss property.

(d) Adjustment in the case of redemptions, liquidations, reorganizations, and divisions.

(1) Redemptions.

(i) General rule.

(ii) Special rule for years in which a corporation makes both ordinary and redemption distributions.

(iii) Adjustments to earnings and profits.

(2) Liquidations and reorganizations.

(3) Corporate separations to which section 368(a)(1)(D) applies.

(e) Election to terminate year under section 1377(a)(2) or § 1.1368-1(g)(2) .

§ 1.1368-3 Examples.

§ 1.1368-4 Effective date and transition rule.

26 C.F.R. §1.1368-0

T.D. 8508, 59 FR 18, Jan. 3, 1994, as amended by T.D. 8696, 61 FR 67455, Dec. 23, 1996; T.D. 8852, 64 FR 71649, Dec. 22, 1999; T.D. 8869, 65 FR 3855 , Jan. 25, 2000