View all text of Subpart B [§ 995 - § 997]

§ 997. Special subchapter C rules
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).
(Added Pub. L. 92–178, title V, § 501, Dec. 10, 1971, 85 Stat. 549.)