26 CFR § 1.332-5 - Distributions in liquidation as affecting minority interests.

---
identifier: "/us/cfr/t26/s1.332-5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.332-5 - Distributions in liquidation as affecting minority interests."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.332-5"
section_name: "Distributions in liquidation as affecting minority interests."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---


# 1.332-5 Distributions in liquidation as affecting minority interests.

Upon the liquidation of a corporation in pursuance of a plan of complete liquidation, the gain or loss of minority shareholders shall be determined without regard to section 332, since it does not apply to that part of distributions in liquidation received by minority shareholders.