Rev. Proc. 83-17

Section 1. Background

Rev. Proc. 82-22, 1982-1 C.B. 469, contains in section 5 thereof a list of those areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Technical) which are under extensive study and in which rulings or determination letters will not be issued until the Service resolves the issue through publication of a revenue ruling, revenue procedure, regulations, or otherwise.

Sec. 2. Procedure

Rev. Proc. 82-22 is amplified to include the following under section 5:

"Section 351.--Transfer to Corporation Controlled by Transferor.--Whether section 351 of the Code applies to the transfer of an interest in real property by a cooperative housing corporation (as defined in section 216(b)(1)) to a corporation in exchange for stock or securities of the transferee corporation when the transferee corporation engages in commercial activity with respect to the real property interest transferred."

"Section 216.--Deduction of Taxes, Interest, and Business Depreciation by Cooperative Housing Corporation Tenant--Stockholder.--If a cooperative housing corporation, as defined in section 216(b)(1) of the Code, transfers an interest in real property to a corporation (not a cooperative housing corporation), in exchange for stock or securities of the transferee corporation, which engages in commercial activity with respect to the real property interest transferred, whether (1) the income of the transferee corporation derived from the commercial activity, and (2) any cash and property attributable to the real property interest transferred that may be distributed by the transferee corporation to the cooperative housing corporation, will be considered as gross income of the cooperative housing corporation for the purpose of determining whether 80 percent or more of the gross income of the cooperative housing corporation is derived from tenant-stockholders within the meaning of section 216(b)(1)(D)."

"Section 1502.--Regulations.--Whether a parent cooperative housing corporation [as defined in section 216(b)(1)] will be permitted to file a consolidated income tax return with its transferee subsidiary if the transferee engages in commercial activity with respect to the real property interest transferred to it by the cooperative housing corporation."

Sec. 3. Effect on Other Revenue Procedures

Section 5 of Rev. Proc. 82-22 is amplified.

Sec. 4. Effective Date

This revenue procedure will apply to all ruling requests on hand in the National Office on March 21, 1983, the date of publication of this revenue procedure in the Internal Revenue Bulletin, as well as any requests received thereafter.