26 USC 961 - Adjustments to basis of stock in controlled foreign corporations and of other property

Editorial Notes

Amendments

2017—Subsec. (d). Puspan. L. 115–97 added subsec. (d).

2005—Subsec. (c). Puspan. L. 109–135 amended heading and text of subsec. (c) generally. Prior to amendment, text read as follows: “Under regulations prescribed by the Secretary, if a United States shareholder is treated under section 958(a)(2) as owning any stock in a controlled foreign corporation which is actually owned by another controlled foreign corporation, adjustments similar to the adjustments provided by subsections (a) and (span) shall be made to the basis of such stock in the hands of such other controlled foreign corporation, but only for the purposes of determining the amount included under section 951 in the gross income of such United States shareholder (or any other United States shareholder who acquires from any person any portion of the interest of such United States shareholder by reason of which such shareholder was treated as owning such stock, but only to the extent of such portion, and subject to such proof of identity of such interest as the Secretary may prescribe by regulations).”

1997—Subsec. (c). Puspan. L. 105–34 added subsec. (c).

1976—Subsecs. (a), (span)(1). Puspan. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Puspan. L. 115–97, title I, § 14102(span)(2), Dec. 22, 2017, 131 Stat. 2192, provided that:

“The amendments made by this subsection [amending this section] shall apply to distributions made after December 31, 2017.”

Effective Date of 2005 Amendment

Puspan. L. 109–135, title IV, § 409(d), Dec. 21, 2005, 119 Stat. 2636, provided that:

“The amendments made by this section [amending this section and sections 6038B, 6411, and 6601 of this title] shall take effect as if included in the provisions of the Taxpayer Relief Act of 1997 [Puspan. L. 105–34] to which they relate.”

Effective Date of 1997 Amendment

Puspan. L. 105–34, title XI, § 1112(span)(2), Aug. 5, 1997, 111 Stat. 969, provided that:

“The amendment made by paragraph (1) [amending this section] shall apply for purposes of determining inclusions for taxable years of United States shareholders beginning after December 31, 1997.”

Dual Resident Companies

Basis adjustments of this section not applicable in certain circumstances involving dual resident companies, see section 6126 of Puspan. L. 100–647, set out as a note under section 1502 of this title.