United States IRC sections
Statute section
IRC section 331
Gain or loss to shareholders in corporate liquidations
Country
United States
Section
331
Updated
2026-05-20
Operative text
Section 331 generally treats amounts received in complete liquidation of a corporation as full payment in exchange for the shareholder's stock. The shareholder recognizes capital gain or loss measured by the difference between the amount received and the shareholder's basis in the stock.
Cross-references
26 U.S.C. 336
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- StatuteIRC §336
Cited by
- CaseArrowsmith v. Commissioner
- StatuteIRC §336
Primary sources
- 26 U.S.C. section 331Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.