Bank Holding Company Tax Act of 1976

Summary

Bank Holding Company Tax Act - Allows bank holding companies, under the Internal Revenue Code, to make pro rata distributions of prohibited property without the surrender of stock by the shareholder or in exchange for preferred stock or securities without the shareholder or security holder recognizing any gain on the receipt of such prohibited property. Requires the Board of Governors of the Federal Reserve System to certify such prohibited property as an interest in a nonbanking organization. Allows a bank holding company to first create a second corporation to receive such prohibited property and then to distribute stock in such second corporation without the stockholder or security holder recognizing any gain on the receipt of such property. Allows a bank holding company to distribute all or a part of the property by reason of which such corporation controls a bank or bank holding company without the shareholder or security holder recognizing any gain on the receipt of such property. Allows a bank holding company to exchange the property by reason of which it is a bank holding company for all of the stock of a second corporation created to receive such property and then to distribute the stock in such second corporation without the stockholder or security holder recognizing any gain on the receipt of such property. Disallows the use of such provisions as a device to avoid Federal income tax on the distribution of earnings and profits of any corporation. Establishes rules for the allocation of basis and earnings and profits following such a distribution of property or stock. Defines the terms used in this Act. Prohibits the application of such nonrecognition provisions to any property acquired by the distributing corporation after July 7, 1976, unless such property was received in a nontaxable transaction. Authorizes the installment payment of tax attributable to the divestiture of, instead of the distribution of, prohibited property or bank property. Makes technical and conforming amendments.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 3 October 1976

  ViewDownloadOpen at official source

• Reported to House with amendment(s)

  summary · EN · 4 March 1976

  Open at official source

• Introduced in House

  summary · EN · 19 February 1976

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.