Taxable Years See, 752. (e) (5) Taxable years after liquidation in case of corpe ration receiving property under section 112 (b) (6). Sec. 752, (d) Highest bracket amount in case of two or more exchanges in same taxable year. See. 752. (d) (1) upon such exchange for any tax able year after the exchange shall be an amount equal (A) to the sum of the amounts computed under upon such exchange for any tax tion with respect to each transferor or (B) $500,000, whichever is the smaller. See. 752, (e) (5) Taxable years Bee. 752. (e) (5) Taxable years after liquidation in ease of corpo after liquidation in case of corpe ration receiving property under ration receiving property under section 112 (b) (6). Upon the resection 112 (b) (6). Upon the reeeipt by a corporation during any ceipt by a corporation during any taxable year under this subchapter taxable year under this subchapter of property in complete liquidation of property in complete liquidation of another corporation, gain or loss of another corporation, gain or less upon which is not recognized by upon which is not recognized by reason of section 112 (b) (6), the reason of section 112 (b) (6), the highest bracket amount of the cor highest bracket amount of the cor poration receiving such property poration receiving such property for any taxable year after the for any taxable year after the liquidation is completed shall be an liquidation is completed shall be an amount equal to its highest bracket amount equal to its highest bracket amount immediately preceding the amount immediately preceding the completion of the liquidation in completion of the liquidation in creased, but in no case to an amount creased, but in no case to an amount above $500,000, by an amount equal above $500,000, by an amount equal to the highest bracket amount of to the highest bracket amount of such other corporation immediately such other corporation immediately preceding the completion of such preceding the completion of such liquidation, if previously and after liquidation, if previously and after the beginning of the first taxable the beginning of the first taxable year under this subchapter of the corporation receiving such property such corporation was a transferor upon an exchange with respect to which such other corporation was a transferee. See. 752. (d) Highest bracket amount in case of two or more exchanges in same taxable year. year under this subchapter of the corporation receiving such property such corporation was a transferer upon an exchange with respect to which such other corporation was a transfereer See. 752. (d) Highest bracket amount in case of two or more exchanges in same taxable year. See. 752. (d) (1) If a transferor See. 752. (d) (1) If a transferer upon an exchange is in the same upon an exchange is in the came taxable year involved in more than taxable year involved in more than one exchange (either as transferor one exchange (either as transferor or transferee), its highest bracket or transferee), its highest bracket amount for such taxable year shell amount for such taxable year shall be the amount determined under subsection (b) (1) with respect to the last exchange in such taxable year. Its highest bracket amount immediately preceding any ex change in such taxable year subse quent to the first exchange therein shall be the amount computed under subsection (b) (1) with respect to the immediately preceding exchange as if the taxable year closed on the day of such subsequent exchange. be the amount determined under subsection (b) (1) with respect to the last exchange in such taxable year. Its highest bracket amount immediately preceding any ex change in such taxable year subse quent to the first exchange therein shall be the amount computed under subsection (b) (1) with respect to the immediately preceding exchange as if the taxable year closed on the day of such subsequent exchange. Taxable Years Beginning in 1940 upon such exchange for any tax able year after the exchange shall be an amount equal (4) to the sum of the amounto computed under subparagraph (4) of such subsection with respect to each transforor or (B) $500,000, whichever is the smaller, See. 752. (e) (5) Taxable years after liquidation in case of corpora tion receiving property under section 112 (b) (6). Upon the receipt by a corporation during any tax able year under this subchapter of property in complete liquidation of another corporation, gain or lose upon which is not recognized by reason of section 112 (b) (6), the highest bracket amount of the co poration receiving such property for any taxable year after the liquidation is completed shall be an amount equal to its highest bracket amount immediately preceding the completion of the liquidation in oregood, but in no case to an amouni above $500,000, by an amount equal to the highest bracket amount of such other corporation immediately preceding the completion of such liquidation, if previously and after the beginning of the first taxable year under this subchapter of the corporation receiving such property such corporation was a transferor upon an exchange with respect to which ouch other corporation was a transferee See, 752, (d) Highest bracket amount in case of two or more exchanges in same taxable year See. 752. (d) (1) If a transferor upon an exchange is in the came taxable year involved in more than one exchange (either as transferor or transferee), its highest bracket amount for such taxable year shall be the amount determined under subsection (b) (1) with respect to the last exchange in such taxable year. Ite highest bracket amount immediately preceding any ex change in such taxable year subsequent to the first exchange therein shall be the amount computed under subsection (b) (1) with respect to the immediately preceding exchange as if the taxable year closed on the day of such subsequent exchange. Taxable Years Bee. 752. (d) (2) See. 762. (d) (3) Sec. 752, I. R. C., supra, added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), I. R. C., makes amendment effective as of Oct. 8, 1940, the date of enactment of Excess Profits Tax Act of 1940. Sec. 752, I. R. C., repealed as of Oct. 8, 1940, date of enactment of second R. A. of 1940, by Sec. 229 (a) (1), R. A. of 1942. Supplement C-Invested Capital Sec. 760. Exchanges. Sec. 760. (a) Definitions, etc.For the purposes of this section See, 752, (d) (2) If a transferee See. 752. (d) (2) If a transferee upon an exchange is in the same upon an exchange is in the same taxable year involved in more than taxable year involved in more than one exchange (either as transferee one exchange (either as transferee or transferor), its highest bracket or transferor), its highest bracket amount for such taxable year shall amount for such taxable year shall be the amount determined under be the amount determined under subsection (e) (1) with respect to subsection (e) (1) with respect to the last exchange in such taxable the last exchange in such taxable year. Its highest bracket amount year. Its highest bracket amount immediately preceding any ex immediately preceding any ex change in such taxable year subse change in such taxable year subce quent to the first exchange therein quent to the first exchange therein shall be the amount computed under shall be the amount computed under subsection (e) (1) with respect to subsection (e) (1) with respect to the immediately preceding exchange the immediately preceding exchange as if the taxable year closed on the as if the taxable year closed on the day of such subsequent exchange. day of such subsequent exchange. See. 752. (d) (3) If a transferor See, 752. (d) (3) If a transferor or transferee upon an exchange is or transferce upon an exchange is in the same taxable year involved in the same taxable year involved in more than one exchange (either in more than one exchange (either as transferor or transferee), its as transferor or transferee), its highest bracket amount for any highest bracket amount for any taxable year after the taxable year taxable year after the taxable year in which such exchanges took place in which such exchanges took place shall be the amount computed under subsection (b) (2), (3), or (4), or (e) (2), (3), (4), or (5), as the ease may be, with respect to the last such exchange. Sec. 752, I. R. C., supra, added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), I. R. C., makes amendment effective as of Oct. 8, 1940, the date of enactment of Excess Profits Tax Act of 1940. Sec. 752, I. R. C., repealed as of Oct. 8, 1940, date of enactment of second R. A. of 1940, by Sec. 229 (a) (1), R. A. of 1942. Supplement C-Invested Capital Sec. 760. Exchanges. Sec. 760. (a) Definitions, etc.— 28 In referring to amendments made by Sec. 230 (a), R. A. of 1942, which added Secs. 760 and 761, I. R. C., Sec. 230 (d), R. A. of 1942, provides as follows: Sec. 230. (d) Optional retroactivity of amendments to 1940 and 1941.-The amendments made by this section, inserting section 760 and section 761, shall also be applicable in the computation of the tax for all taxable years beginning after December 31, 1939, if the taxpayer, within the time and in the manner and subject shall be the amount computed under subsection (b) (2), (3), or (4), or (e) (2), (3), (1), or (5), as the ease may be, with respect to the last such exchange. supra, Sec. 752, I. R. C., added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), I. R. C., makes amendment effective as of Oct. 8, 1940, the date of Profits enactment of Excess Tax Act of 1940. Sec. 752, I. R. C., repealed as of Oct 8, 1940, date of enactment of second R. A. of 1940, by Sec. 229 (a) (1), R. A. of 1942. Sec. 760. Exchange. Retroactivity See Sec. 760, I. R. C., in 1942 column and Sec. 230 (d), R. A. of 1942, in fn. 28, below, relative to optional retroactivity of amendments made by Sec. 230 (a) inserting Sec. 760, I. R. C. to such regulations as the Commissioner, with the approval of the Secretary, prescribes, elects to have either or both of such amendments apply. For any taxable year for which the provisions of section 760 are applied retroactively, the amendment made by subsection (b) (2) of this section to section 719 (a) (1) shall also apply. In case the provisions of section 761 are applied retroactively, the provisions of section 718 (a) (5), seetion 718 (b) (4), and section 718 (c) (4) shall not apply in such computations. Taxable Years Beginning in 1940 Sec. 752. (d) (2) If a transferee upon an exchange is in the same taxable year involved in more than one exchange (either as transferec or transferor), its highest bracket amount for such taxable year shall be the amount determined under subsection (e) (1) with respect to the last exchange in such taxable year. Its highest bracket amount immediately preceding any change in such taxable year subsequent to the first exchange therein shall be the amount computed under subsection (e) (1) with respect to the immediately preceding exchange as if the taxable year closed on the day of suck ouboequent exchange. Sec. 752. (d) (3) If a transferor or transferee upon an exchange is in the same taxable year involved in more than one exchange (either as transforor or transferee), ite kighest bracket amount for any taxable year after the taxable year in which such exchanges took place shall be the amount computed under subsection (b) (2), (3), or (1), or (e) (2), (3), (4), or (5), as the case may be, with respect to the last euch exchange. Secs. 750, 751 and 752, I. R. Sec. 752, I. R. C., repealed Sec. 760. Exchange.— Retroactivity See Sec. 760, I. R. C., in 1942 column and Sec. 230 (d), R. A. of 1942, in fn. 28, p. 936, relative to optional retroactivity of amendments made by Sec. 230 (a) inserting Sec. 760, I. R. C. Sec. 760. (a) (1) "Exchange", "transferor", and "transferee'. α Sec. 760. (a) (1) "Exchange'', transaction by which one corpora- Sec. 760. (a) (2) Determination of basis of property received.The basis, in the hands of the transferee, of the property of the transferor received by the transferee upon the exchange shall be determined in accordance with section 718 (a). corporation (hereinafter called "transferor") and the basis of the property received, in the hands of the transferee, for the purposes of section 718 (a) is determined by reference to the basis in the hands of the transferor. Sec. 760. (a) (2) Determination of basis of property received.The basis, in the hands of the transferee, of the property of the transferor received by the transferee upon the exchange shall be determined in accordance with section 718 (a). Sec. 760. (b) Rule.-In the ap- Sec. 760. (b) Rule.-In the application of section 718 (a) to a plication of section 718 (a) to a transferee upon an exchange in de- transferee upon an exchange in determining the amount paid in for termining the amount paid in for stock of the transferee, or as paid-stock of the transferee, or as paidin surplus or as a contribution to in surplus or as a contribution to capital of the transferee, in connec- capital of the transferee, in connection with such exchange, only an tion with such exchange, only an amount shall be deemed to have been amount shall be deemed to have been so paid in equal to the excess of the so paid in equal to the excess of the basis in the hands of the the trans-basis in the hands of the transferee feree of the property of the trans- of the property of the transferor feror received by the transferee received by the transferee upon the upon the exchange over the sum exchange over the sum of— of Sec. 760. (b) (1) The amount of any liability of the transferor assumed upon the exchange and of any liability subject to which such property was so received, plus Sec. 760. (b) (2) The amount of any liability of the transferee (not arising out of any liability described in paragraph (1)) constituting consideration for the property so received, plus Sec. 760. (b) (3) The aggregate of the amount of any money and the fair market value of any other property (other than such stock and other than property described in paragraphs (1) and (2)) transferred to the transferor. Sec. 760. (b) (1) The amount of any liability of the transferor assumed upon the exchange and of any liability subject to which such property was so received, plus Sec. 760. (b) (2) The amount of any liability of the transferee (not arising out of any liability described in paragraph (1)) constituting consideration for the property so received, plus Sec. 760. (b) (3) The aggregate of the amount of any money and the fair market value of any other property (other than such stock and other than property described in paragraphs (1) and (2)) transferred to the transferor. Sec. 760. (c) Reduction in daily Sec. 760. (c) Reduction in daily invested capital.-In the applica- invested capital.-In the application of section 717 to a transferee tion of section 717 to a transferee upon an exchange, the daily in- upon an exchange, the daily invested capital for any day after vested capital for any day after Taxable Years Beginning in 1941 |