26 CFR 1.305-4
§ 1.305-4 Distributions of common and preferred stock.
United States · 26 CFR — Internal Revenue · Status: effective
Cite this
- Citation
- 26 CFR 1.305-4, § 1.305-4 Distributions of common and preferred stock, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/109580
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Full text
(a) In general. Under section 305(b)(3), a distribution (or a series of distributions) by a corporation which results in the receipt of preferred stock whether or not convertible into common stock) by some common shareholders and the receipt of common stock by other common shareholders is treated as a distribution of property to which section 301 applies. For the meaning of the term a series of distribution, see subparagraphs (1) through (6) of § 1.305-3(b).
(b) Examples. The application of section 305(b)(3) may be illustrated by the following examples:
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.