Treasury Regulations · 26 CFR
§ 1.312-2. Distribution of inventory assets.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 312
Cite as 26 CFR § 1.312-2
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted.
- Issued under
- 26 U.S.C. § 312
- Length
- 94 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 0
Section 312(b) provides for the increase and the decrease of the earnings and profits of a corporation which distributes, with respect to its stock, inventory assets as defined in section 312(b)(2), where the fair market value of such assets exceeds their adjusted basis. The rules provided in section 312(b) (relating to distributions of certain inventory assets) shall be applicable without regard to the method used in computing inventories for the purpose of the computation of taxable income. Section 312(b) does not apply to distributions described in section 312(e).
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Effects on corporation
Nearby sections
- § 1.312-1 Adjustment to earnings and profits reflecting distributions by corporations.
- § 1.312-2 Distribution of inventory assets.
- § 1.312-3 Liabilities.
- § 1.312-4 Examples of adjustments provided in section 312(c).
- § 1.312-5 Special rule for partial liquidations and certain redemptions.
- § 1.312-6 Earnings and profits.