Statute section
IRC section 336
Gain or loss recognized on property distributed in complete liquidation
Country
United States
Section
336
Updated
2026-05-20
Operative text
Section 336 generally requires a liquidating corporation to recognize gain or loss on the distribution of property in complete liquidation as if the property were sold to the distributee at fair market value. Loss-recognition is limited for distributions to related parties under Section 336(d).
Amendment history
1986-10-22
Pub. L. 99-514
TRA 1986 repealed the General Utilities doctrine and enacted Section 336 in its modern form requiring gain or loss recognition.
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Primary sources
- 26 U.S.C. section 336Verified 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.