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Treasury Regulations · 26 CFR

§ 1.852-12. Non-RIC earnings and profits.

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. § 852

Cite as 26 CFR § 1.852-12

At a glance

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

Status
In the current eCFR
Issued
August 18, 1993 by T.D. 8483
Last amended
February 7, 2000 by T.D. 8872
Issued under
26 U.S.C. § 852
Length
394 words · about 2 min to read
Cross-references
cites 2 Code sections and 0 regulations; cited by 0
(a) Applicability of section 852(a)(2)(A)—
(1) In general. An investment company does not satisfy section 852(a)(2)(A) unless—
(i) Part I of subchapter M applied to the company for all its taxable years ending on or after November 8, 1983; and
(ii) For each corporation to whose earnings and profits the investment company succeeded by the operation of section 381, part I of subchapter M applied for all the corporation's taxable years ending on or after November 8, 1983.
(2) Special rule. See section 1071(a)(5)(D) of the Tax Reform Act of 1984, Public Law 98-369 (98 Stat. 1051), for a special rule which treats part I of subchapter M as having applied to an investment company's first taxable year ending after November 8, 1983.
(b) Applicability of section 852(a)(2)(B)—
(1) In general. An investment company does not satisfy section 852(a)(2)(B) unless, as of the close of the taxable year, it has no earnings and profits other than earnings and profits that—
(i) Were earned by a corporation in a year for which part I of subchapter M applied to the corporation and, at all times thereafter, were the earnings and profits of a corporation to which part I of subchapter M applied;
(ii) By the operation of section 381 pursuant to a transaction that occurred before December 22, 1992, became the earnings and profits of a corporation to which part I of subchapter M applied and, at all times thereafter, were the earnings and profits of a corporation to which part I of subchapter M applied;
(iii) Were accumulated in a taxable year ending before January 1, 1984, by a corporation to which part I of subchapter M applied for any taxable year ending before November 8, 1983; or
(iv) Were accumulated in the first taxable year of an investment company that began business in 1983 and that was not a successor corporation.
(2) Prior law. For purposes of paragraph (b) of this section, a reference to part I of subchapter M includes a reference to the corresponding provisions of prior law.
(c) Effective date. This regulation is effective for taxable years ending on or after December 22, 1992.
(d) For treatment of net built-in gain assets of a C corporation that become assets of a RIC, see § 1.337(d)-5T.

[T.D. 8483, 58 FR 43798, Aug. 18, 1993; 58 FR 49352, Sept. 22, 1993; T.D. 8872, 65 FR 5777, Feb. 7, 2000]

Other regulations under § 852

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

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. Amended by T.D. 8872 (65 FR 5777)
  2. Amended (58 FR 49352)
  3. Issued by T.D. 8483 (58 FR 43798)

Where it sits in 26 CFR

  1. Subchapter A Income tax
  2. Part 1 Income taxes
  3. Regulated investment companies and real estate investment trusts

Nearby sections