26 CFR 1.514(d)-1
§ 1.514(d)-1 Basis of debt-financed property acquired in corporate liquidation.
United States · 26 CFR — Internal Revenue · Status: effective
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- Citation
- 26 CFR 1.514(d)-1, § 1.514(d)-1 Basis of debt-financed property acquired in corporate liquidation, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/110371
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Full text
(a) If debt-financed property is acquired by an exempt organization in a complete or partial liquidation of a corporation in exchange for its stock, the organization's basis in such property shall be the same as it would be in the hands of the transferor corporation, increased by the amount of gain recognized to the transferor corporation upon such distribution and by the amount of any gain which is includible, on account of such distribution, in the gross income of the organization as unrelated debt-financed income.
(b) The application of this section may be illustrated by the following example:
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.