26 CFR § 1.337-1 - Nonrecognition for property distributed to parent in complete liquidation of subsidiary.

---
identifier: "/us/cfr/t26/s1.337-1"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.337-1 - Nonrecognition for property distributed to parent in complete liquidation of subsidiary."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.337-1"
section_name: "Nonrecognition for property distributed to parent in complete liquidation of subsidiary."
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"
---


# 1.337-1 Nonrecognition for property distributed to parent in complete liquidation of subsidiary.

(a) *General rule.* If sections 332(a) and 337 are applicable with respect to the receipt of a subsidiary`s property in complete liquidation, no gain or loss is recognized to the liquidating subsidiary with respect to such property (including property distributed with respect to indebtedness, see section 337(b)(1) and § 1.332-7), except as provided in section 337(b)(2) (distributions to certain tax-exempt distributees), section 367(e)(2) (distributions to foreign corporations), and section 897(d) (distributions of U.S. real property interests by foreign corporations).

(b) *Applicability date.* This section applies to any taxable year beginning on or after March 28, 2016.

[T.D. 9759, 81 FR 17074, Mar. 28, 2016]