810-3-6-.08 Basis of Property Acquired on Liquidation of a Subsidiary.

(1) Basis of Property Acquired on Liquidation of Subsidiary. The basis of property acquired by a corporation as a result of a liquidation of a subsidiary to which § 40-18-8(h), Code of Alabama 1975, applies shall be determined in accordance with 26 U.S.C.§ 334(b). For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1-.01, Operating Rules.

(2) § 40-18-8(h) concerns the complete liquidation of subsidiaries satisfying the requirements of 26 U.S.C.§ 332.

Author:     Ed Cutter, CPA
Authority: §§ 40-2A-7(a)(5) and 40-18-6, Code of Alabama 1975
History:    New rule filed April 28, 1999, effective June 2, 1999.