Gain or loss to shareholder in corporate liquidations

26 U.S.C. § 331
in effect
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(a) Distributions in complete liquidation treated as exchangesAmounts 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 301Section 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 referenceFor general rule for determination of the amount of gain or loss recognized, see section 1001.

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