Determination of Basis of Stock or Securities Received in Exchange for, or With Respect to, Stock or Securities in Certain Transactions; Treatment of Excess Loss Accounts; Correction, 19117-19118 [06-3527]
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Federal Register / Vol. 71, No. 71 / Thursday, April 13, 2006 / Rules and Regulations
19117
TABLE 3.—MATERIAL PREVIOUSLY INCORPORATED BY REFERENCE—Continued
Revision
level
Gulfstream service information
Gulfstream G550 .............................................................................................................................................
GAC–AC–G550–OPS–0001
Issued in Renton, Washington, on April 5,
2006.
Kevin M. Mullin,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 06–3540 Filed 4–12–06; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No. FAA–2005–23436; Airspace
Docket No. 05–ASO–10]
RIN 2120–AA66
waypoint (WP) listed in the description
of route T–210 in a final rule published
in the Federal Register on March 27,
2006 (71 FR 15027), Airspace Docket
No. 05–ASO–10. This action also makes
an editorial change to the order of the
points listed in the route description.
DATES: Effective Date: 0901 UTC, June 8,
2006.
FOR FURTHER INFORMATION CONTACT: Paul
Gallant, Airspace and Rules, Office of
System Operations Airspace and AIM,
Federal Aviation Administration, 800
Independence Avenue, SW.,
Washington, DC 20591; telephone: (202)
267–8783.
SUPPLEMENTARY INFORMATION:
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; correction.
AGENCY:
SUMMARY: This action corrects an error
in the geographic coordinates of a
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BILLING CODE 4910–13–P
§ 71.1
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Internal Revenue Service
26 CFR Part 1
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
HSRObinson on PROD1PC61 with RULES
SUMMARY: This document contains a
correction to final and temporary
regulations (TD 9244), that was
published in the Federal Register on
Thursday, January 26, 2006 (71 FR
4264). This regulation provides
PO 00000
Frm 00021
Fmt 4700
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guidance regarding the determination of
the basis of stock or securities received
in exchange for, or with respect to stock
or securities in certain transactions.
This correction is effective
January 23, 2006.
RIN 1545–BC05; 1545–BE88
Jkt 208001
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DATES:
[TD 9244]
AGENCY:
14:13 Apr 12, 2006
[Amended]
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(Lat. 30°30′17″ N., long. 82°33′10″ W.)
(Lat. 30°16′06″ N., long. 82°06′33″ W.)
(Lat. 29°55′22″ N., long. 81°28′08″ W.)
Determination of Basis of Stock or
Securities Received in Exchange for,
or With Respect to, Stock or Securities
in Certain Transactions; Treatment of
Excess Loss Accounts; Correction
VerDate Aug<31>2005
Correction to Final Rule
PART 71—[AMENDED]
DEPARTMENT OF THE TREASURY
Issued in Washington, DC, on April 7,
2006.
Edith V. Parish,
Manager, Airspace and Rules.
[FR Doc. 06–3559 Filed 4–12–06; 8:45 am]
coordinates for OHLEE are lat. 30°16′06″
N., long. 82°06′33″ W. The action
corrects the error. In addition, the order
of the points listed in the rule for the
route T–210 legal description did not
match the order as listed in flight
inspection documentation. The rule
listed the points from east to west while
the flight inspection document listed
the points from west to east. This action
simply reverses the order of the points
listed in the route T–210 description to
agree with the flight inspection
documentation. This change does not
affect the alignment of the route.
Accordingly, pursuant to the authority
delegated to me, the legal descriptions
for T–210 as published in the Federal
Register on March 27, 2006 (71 FR
15027), and incorporated by reference in
14 CFR 71.1, is corrected as follows:
On March 27, 2006, a final rule for
Airspace Docket No. 05–ASO–10 was
published in the Federal Register (71
FR 15027). This rule established RITTR
route T–210 in the Jacksonville, FL,
terminal area. In the description for
route T–210, the coordinates for the
OHLEE, FL, WP were incorrect. The
correct latitude and longitude
T–210 Taylor, FL to BRADO, FL [Corrected]
Taylor, FL (TAY) ........................................... VORTAC ........................................................
OHLEE, FL ..................................................... WP .................................................................
BRADO, FL .................................................... Fix ..................................................................
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January 24, 2006.
I
History
Establishment of Area Navigation
Instrument Flight Rules Terminal
Transition Route (RITTR); T–210;
Jacksonville, FL
15
Revision date
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FOR FURTHER INFORMATION CONTACT:
Theresa M. Kolish, (202) 622–7530 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final and temporary regulations
(TD 9244) that are the subject of these
corrections are under sections 356, 358
and 1502 of the Internal Revenue Code.
Need for Correction
As published, TD 9244 contains errors
that may prove to be misleading and are
in need of clarification.
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13APR1
19118
Federal Register / Vol. 71, No. 71 / Thursday, April 13, 2006 / Rules and Regulations
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
I
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
I
Authority: 26 U.S.C. 7805 * * *
§ 1.358–1
[Corrected]
I Par. 2. Section 1.358–1 is amended by
removing the seventh and eighth
sentences of paragraph (b), Example,
and adding the following sentence in
their place:
§ 1.358–1
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Basis to distributes.
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(b) * * *
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Example * * * The basis to A of the one
share of stock Corporation Y is $90, that is,
the adjusted basis of the one share of stock
of Corporation X ($90), decreased by the sum
of the cash received ($10) and the fair market
value of the other property received ($30)
and increased by the sum of the amount
treated as a dividend ($5) and the amount
treated as a gain from the exchange of
property ($35). * * *
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§ 1.358–2
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[Corrected]
I Par. 3. Section 1.358–2 is amended as
follows:
I a. By revising paragraph (a)(2)(viii).
I b. By revising paragraph (ii) in
paragraph (c), Examples 4, 5, 6, and 11.
The corrections read as follows:
HSRObinson on PROD1PC61 with RULES
§ 1.358–2 Allocation of basis among
nonrecognition property.
(a) * * *
(2) * * *
(viii) This paragraph (a)(2) shall not
apply to determine the basis of a share
of stock or security received by a
shareholder or security holder in an
exchange described in both section 351
and section 354 or section 356, if, in
connection with the exchange, the
shareholder or security holder
exchanges property for stock or
securities in an exchange to which
neither section 354 nor section 356
applies or liabilities of the shareholder
or security holder are assumed.
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(c) * * *
Example 4. * * *
(ii) Analysis. Under paragraph
(a)(2)(ii) of this section and under
VerDate Aug<31>2005
14:13 Apr 12, 2006
Jkt 208001
§ 1.356–1(b), because the terms of the
exchange do not specify that shares of
Corporation Y stock or cash are received
in exchange for particular shares of
Class A stock or Class B stock of
Corporation X, a pro rata portion of the
shares of Corporation Y stock and cash
received will be treated as received in
exchange for each share of Class A stock
and Class B stock of Corporation X
surrendered based on the fair market
value of such stock. Therefore, J is
treated as receiving one share of
Corporation Y stock and $5 of cash in
exchange for each share of Class A stock
of Corporation X and one share of
Corporation Y stock and $5 of cash in
exchange for each share of Class B stock
of Corporation X. J realizes a gain of
$140 on the exchange of shares of Class
A stock of Corporation X, $100 of which
is recognized under § 1.356–1(a). J
realizes a gain of $80 on the exchanges
of Class B stock of Corporation X, all of
which is recognized under § 1.356–1(a).
Under paragraph (a)(2)(i) of this section,
J has 10 shares of Corporation Y stock,
each of which has a basis of $2 and is
treated as having been acquired on Date
1, 10 shares of Corporation Y stock, each
of which has a basis of $4 and is treated
as having been acquired on Date 2, and
20 shares of Corporation Y stock, each
of which has a basis of $5 and is treated
as having been acquired on Date 3.
Under paragraph (a)(2)(vii) of this
section, on or before the date on which
the basis of a share of Corporation Y
stock received becomes relevant, J may
designate which of the shares of
Corporation Y stock received have a
basis of $2, which have a basis of $4,
and which have a basis of $5.
(ii) Analysis. Under paragraph
(a)(2)(ii) of this section and under
§ 1.356–1(b), because the terms of the
exchange specify that J receives 40
shares of stock of Corporation Y in
exchange for J’s shares of Class A stock
of Corporation X and $200 of cash in
exchange for J’s shares of Class B stock
of Corporation X and such terms are
economically reasonable, such terms
control.’’ in its place. J realizes a gain of
$140 on the exchange of shares of Class
A stock of Corporation X, none of which
is recognized under § 1.356–1(a). J
realizes a gain of $80 on the exchange
of shares of Class B stock of Corporation
X, all of which is recognized under
§ 1.356–1(a). * * *
Example 6. * * *
(ii) Analysis. Under paragraph
(a)(2)(ii) of this section and under
§ 1.354–1(a), because the terms of the
exchange specify that J receives 10
Frm 00022
Fmt 4700
Example 11. * * *
(ii) Analysis. Because the value of the
common stock indicates that the
liquidation preference associated with
the Corporation Y preferred stock could
be satisfied even if the reorganization
did not occur, it is not appropriate to
deem the issuance of additional
Corporation Y preferred stock. * * *
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§ 1.1502–19T
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[Corrected]
3. Section 1.1502–19T is amended by:
a. Revising the section heading.
I b. Revising paragraph (b)(2) through
(c).
I c. Revising the text of paragraph
(h)(2)(iv).
The corrections read as follows:
I
I
§ 1.1502–19T
(temporary).
Excess loss accounts
(a) through (c) [Reserved]. For further
guidance, see § 1.1502–19(a) through (c).
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(h)(2)(iv) * * * For guidance
regarding determinations of the basis of
the stock of a subsidiary acquired in and
intercompany reorganization on or after
January 23, 2006, see paragraphs (d) and
(g) Example 2 of this section.
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§ 1.1502–32
Example 5. * * *
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shares of stock of Corporation Y in
exchange for J’s shares of Class A stock
of Corporation X and a Corporation Y
security in exchange for its Corporation
X security and such terms are
economically reasonable, such terms
control. * * *
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[Corrected]
4. Section 1.1502–32 is amended by
revising the text of paragraph (h)(8) to
read as follows:
I
§ 1.1502–32
Investment adjustments.
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(h) * * *
(8) * * * Paragraph (b)(5)(ii) Example
6 of this section applies only with
respect to determinations of the basis of
the stock a subsidiary on or after
January 23, 2006. For determinations of
the basis of the stock of a subsidiary
before January 26, 2006, see § 1.1502–
32(b)(5)(ii) Example 6 as contained in
the 26 CFR part 1 edition revised as of
April 1, 2005.
Guy R. Traynor,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedures and Administration).
[FR Doc. 06–3527 Filed 4–12–06; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\13APR1.SGM
13APR1
]]>Agencies
[Federal Register Volume 71, Number 71 (Thursday, April 13, 2006)]
[Rules and Regulations]
[Pages 19117-19118]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3527]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9244]
RIN 1545-BC05; 1545-BE88
Determination of Basis of Stock or Securities Received in
Exchange for, or With Respect to, Stock or Securities in Certain
Transactions; Treatment of Excess Loss Accounts; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains a correction to final and temporary
regulations (TD 9244), that was published in the Federal Register on
Thursday, January 26, 2006 (71 FR 4264). This regulation provides
guidance regarding the determination of the basis of stock or
securities received in exchange for, or with respect to stock or
securities in certain transactions.
DATES: This correction is effective January 23, 2006.
FOR FURTHER INFORMATION CONTACT: Theresa M. Kolish, (202) 622-7530 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final and temporary regulations (TD 9244) that are the subject
of these corrections are under sections 356, 358 and 1502 of the
Internal Revenue Code.
Need for Correction
As published, TD 9244 contains errors that may prove to be
misleading and are in need of clarification.
[[Page 19118]]
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
0
Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 1.358-1 [Corrected]
0
Par. 2. Section 1.358-1 is amended by removing the seventh and eighth
sentences of paragraph (b), Example, and adding the following sentence
in their place:
Sec. 1.358-1 Basis to distributes.
* * * * *
(b) * * *
Example * * * The basis to A of the one share of stock
Corporation Y is $90, that is, the adjusted basis of the one share
of stock of Corporation X ($90), decreased by the sum of the cash
received ($10) and the fair market value of the other property
received ($30) and increased by the sum of the amount treated as a
dividend ($5) and the amount treated as a gain from the exchange of
property ($35). * * *
* * * * *
Sec. 1.358-2 [Corrected]
0
Par. 3. Section 1.358-2 is amended as follows:
0
a. By revising paragraph (a)(2)(viii).
0
b. By revising paragraph (ii) in paragraph (c), Examples 4, 5, 6, and
11.
The corrections read as follows:
Sec. 1.358-2 Allocation of basis among nonrecognition property.
(a) * * *
(2) * * *
(viii) This paragraph (a)(2) shall not apply to determine the basis
of a share of stock or security received by a shareholder or security
holder in an exchange described in both section 351 and section 354 or
section 356, if, in connection with the exchange, the shareholder or
security holder exchanges property for stock or securities in an
exchange to which neither section 354 nor section 356 applies or
liabilities of the shareholder or security holder are assumed.
* * * * *
(c) * * *
Example 4. * * *
(ii) Analysis. Under paragraph (a)(2)(ii) of this section and under
Sec. 1.356-1(b), because the terms of the exchange do not specify that
shares of Corporation Y stock or cash are received in exchange for
particular shares of Class A stock or Class B stock of Corporation X, a
pro rata portion of the shares of Corporation Y stock and cash received
will be treated as received in exchange for each share of Class A stock
and Class B stock of Corporation X surrendered based on the fair market
value of such stock. Therefore, J is treated as receiving one share of
Corporation Y stock and $5 of cash in exchange for each share of Class
A stock of Corporation X and one share of Corporation Y stock and $5 of
cash in exchange for each share of Class B stock of Corporation X. J
realizes a gain of $140 on the exchange of shares of Class A stock of
Corporation X, $100 of which is recognized under Sec. 1.356-1(a). J
realizes a gain of $80 on the exchanges of Class B stock of Corporation
X, all of which is recognized under Sec. 1.356-1(a). Under paragraph
(a)(2)(i) of this section, J has 10 shares of Corporation Y stock, each
of which has a basis of $2 and is treated as having been acquired on
Date 1, 10 shares of Corporation Y stock, each of which has a basis of
$4 and is treated as having been acquired on Date 2, and 20 shares of
Corporation Y stock, each of which has a basis of $5 and is treated as
having been acquired on Date 3. Under paragraph (a)(2)(vii) of this
section, on or before the date on which the basis of a share of
Corporation Y stock received becomes relevant, J may designate which of
the shares of Corporation Y stock received have a basis of $2, which
have a basis of $4, and which have a basis of $5.
Example 5. * * *
(ii) Analysis. Under paragraph (a)(2)(ii) of this section and under
Sec. 1.356-1(b), because the terms of the exchange specify that J
receives 40 shares of stock of Corporation Y in exchange for J's shares
of Class A stock of Corporation X and $200 of cash in exchange for J's
shares of Class B stock of Corporation X and such terms are
economically reasonable, such terms control.'' in its place. J realizes
a gain of $140 on the exchange of shares of Class A stock of
Corporation X, none of which is recognized under Sec. 1.356-1(a). J
realizes a gain of $80 on the exchange of shares of Class B stock of
Corporation X, all of which is recognized under Sec. 1.356-1(a). * * *
Example 6. * * *
(ii) Analysis. Under paragraph (a)(2)(ii) of this section and under
Sec. 1.354-1(a), because the terms of the exchange specify that J
receives 10 shares of stock of Corporation Y in exchange for J's shares
of Class A stock of Corporation X and a Corporation Y security in
exchange for its Corporation X security and such terms are economically
reasonable, such terms control. * * *
* * * * *
Example 11. * * *
(ii) Analysis. Because the value of the common stock indicates that
the liquidation preference associated with the Corporation Y preferred
stock could be satisfied even if the reorganization did not occur, it
is not appropriate to deem the issuance of additional Corporation Y
preferred stock. * * *
* * * * *
Sec. 1.1502-19T [Corrected]
0
3. Section 1.1502-19T is amended by:
0
a. Revising the section heading.
0
b. Revising paragraph (b)(2) through (c).
0
c. Revising the text of paragraph (h)(2)(iv).
The corrections read as follows:
Sec. 1.1502-19T Excess loss accounts (temporary).
(a) through (c) [Reserved]. For further guidance, see Sec. 1.1502-
19(a) through (c).
* * * * *
(h)(2)(iv) * * * For guidance regarding determinations of the basis
of the stock of a subsidiary acquired in and intercompany
reorganization on or after January 23, 2006, see paragraphs (d) and (g)
Example 2 of this section.
* * * * *
Sec. 1.1502-32 [Corrected]
0
4. Section 1.1502-32 is amended by revising the text of paragraph
(h)(8) to read as follows:
Sec. 1.1502-32 Investment adjustments.
* * * * *
(h) * * *
(8) * * * Paragraph (b)(5)(ii) Example 6 of this section applies
only with respect to determinations of the basis of the stock a
subsidiary on or after January 23, 2006. For determinations of the
basis of the stock of a subsidiary before January 26, 2006, see Sec.
1.1502-32(b)(5)(ii) Example 6 as contained in the 26 CFR part 1 edition
revised as of April 1, 2005.
Guy R. Traynor,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedures and Administration).
[FR Doc. 06-3527 Filed 4-12-06; 8:45 am]
BILLING CODE 4830-01-P
