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Treasury Regulations · 26 CFR

§ 1.318-1. Constructive ownership of stock; introduction.

In effect eCFR current as of October 15, 2026

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. § 318

Cite as 26 CFR § 1.318-1

At a glance

Read from the text and its source citation. Not part of the regulation.

Status
In the current eCFR
Issued
August 23, 1968 by T.D. 6969
Issued under
26 U.S.C. § 318
Length
266 words · about 1 min to read
Defines
1 term
Cross-references
cites 1 Code section and 0 regulations; cited by 2
(a) For the purposes of certain provisions of chapter 1 of the Code, section 318(a) provides that stock owned by a taxpayer includes stock constructively owned by such taxpayer under the rules set forth in such section. An individual is considered to own the stock owned, directly or indirectly, by or for his spouse (other than a spouse who is legally separated from the individual under a decree of divorce or separate maintenance), and by or for his children, grandchildren, and parents. Under section 318(a)(2) and (3), constructive ownership rules are established for partnerships and partners, estates and beneficiaries, trusts and beneficiaries, and corporations and stockholders. If any person has an option to acquire stock, such stock is considered as owned by such person. The term option includes an option to acquire such an option and each of a series of such options.
(b) In applying section 318(a) to determine the stock ownership of any person for any one purpose—
(1) A corporation shall not be considered to own its own stock by reason of section 318(a)(3)(C);
(2) In any case in which an amount of stock owned by any person may be included in the computation more than one time, such stock shall be included only once, in the manner in which it will impute to the person concerned the largest total stock ownership; and
(3) In determining the 50-percent requirement of section 318(a)(2)(C) and (3)(C), all of the stock owned actually and constructively by the person concerned shall be aggregated.

[T.D. 6969, 33 FR 11999, Aug. 23, 1968]

Terms defined here

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Other regulations under § 318

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Cited by 2 other regulations

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

  1. Issued by T.D. 6969 (33 FR 11999)

Where it sits in 26 CFR

  1. Subchapter A Income tax
  2. Part 1 Income taxes
  3. Definitions; constructive ownership of stock

Nearby sections