26 U.S.C. § 331 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 331. Gain or loss to shareholder in corporate liquidations

(a) Distributions in complete liquidation treated as exchanges.--Amounts received by a shareholder in a distribution in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock.

(b) Nonapplication of section 301.--Section 301 (relating to effects on shareholder of distributions of property) shall not apply to any distribution of property (other than a distribution referred to in paragraph (2)(B) of section 316(b)) in complete liquidation.

(c) Cross reference.--

For general rule for determination of the amount of gain or loss recognized, see section 1001.