Rev. Rul. 63-28

In section 4.015 of Revenue Procedure 62-32, C.B. 1962-2, 527, at 232, the Internal Revenue Service announced that it would not ordinarily issue advance rulings on the tax effect, under section 351 of the Internal Revenue Code of 1954, of a transfer to a corporation controlled by the transferor where part of the consideration received by the transferor consists of bonds, debentures or any other evidences of indebtedness of the transferee. The resolution of the tax effect of transfers of this type requires essentially factual determinations which ordinarily can be made only after the transfers have been consummated and the appropriate tax returns of the taxpayers involved have been examined.

In view of the foregoing, the Service has decided to withdraw Revenue Ruling 56-303, C.B. 1956-2, 193, since it involves the tax effect, under section 351 of the Code, of a transfer by a corporation of cash and appreciated real estate to a controlled corporation in exchange for stock and short-term notes of the transferee. Accordingly, Revenue Ruling 56-303 is hereby withdrawn.