Rev. Proc. 75-24
Rev. Proc. 75-24; 1975-1 C.B. 719
- Cross-Reference
26 CFR 601.201: Rulings and determination letters.
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 77-37
Rev. Proc. 74-26, 1974-2 C.B. 478, sets forth operating rules for the issuance of advance rulings concerning matters coming within the jurisdiction of the Reorganization Branch. Sec. 3.04 of Rev. Proc. 74-26 states that for advance ruling purposes, the "substantially all of its assets" requirement of section 355(b)(2)(A) of the Internal Revenue Code of 1954 is satisfied if at least 90 percent of the fair market value of the corporation's assets consists of stock and securities of controlled corporations which are engaged in the active conduct of a trade or business as defined in section 355(b)(2).
For purposes of Sec. 3.04 of Rev. Proc. 74-26, the 90 percent test is applied to the gross assets of the corporation (assets undiminished by liabilities) rather than to the net assets (assets less liabilities).
Rev. Proc. 74-26 is clarified.
- Cross-Reference
26 CFR 601.201: Rulings and determination letters.
- LanguageEnglish
- Tax Analysts Electronic Citationnot available