26 CFR 1.544-7
§ 1.544-7 Option rule in lieu of family and partnership rule.
United States · 26 CFR — Internal Revenue · Status: effective
Cite this
- Citation
- 26 CFR 1.544-7, § 1.544-7 Option rule in lieu of family and partnership rule, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/110435
- Permanent ID
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524787f4f85fd530b8f1d052da20c4a3df487c402ed3cd4a9dd99a9dfa8720c4
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Full text
(a) If, in determining the ownership of stock, such stock may be considered as constructively owned by an individual by an application of either the family and partnership rule (section 544(a)(2)) or the option rule (section 544(a)(3)), such stock shall be considered as owned constructively by the individual by reason of the application of the option rule.
(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.