Title 26 — Internal Revenue CodeRelease 119-73

§997 Special subchapter C rules

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter N— - Tax Based on Income From Sources Within or Without the United States › Part PART IV— - DOMESTIC INTERNATIONAL SALES CORPORATIONS › Subpart Subpart B— - Treatment of Distributions to Shareholders › § 997

Last updated Apr 6, 2026|Official source

Summary

For tax rules under subchapter C of chapter 1, count any property a DISC or former DISC gives to a corporation from previously taxed income or from accumulated DISC earnings the same way you would count a payment to a person. The corporation’s tax basis in that property must equal that same amount.

Full Legal Text

Title 26, §997

Internal Revenue Code — Source: USLM XML via OLRC

For purposes of applying the provisions of subchapter C of chapter 1, any distribution in property to a corporation by a DISC or former DISC which is made out of previously taxed income or accumulated DISC income shall—

(1)be treated as a distribution in the same amount as if such distribution of property were made to an individual, and

(2)have a basis, in the hands of the recipient corporation, equal to the amount determined under paragraph (1).

Reference

Citations & Metadata

Citation

26 U.S.C. § 997

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73