Extract to table

This draft has been prepared to facilitate discussion and to identify open issues that must be resolved prior to the delivery of a final Opinion

355-2(b)(2) further provides that a shareholder purpose (such as the personal planning needs of a controlling shareholder) is not a corporate business purpose, and that the principal purpose for the distribution must not be the avoidance of federal income taxes

Section 355(e) — Plan or Series of Related Transactions (Anti-Morris Trust) Section 355(e) of the Code, commonly referred to as the "anti-Morris Trust" provision, provides that if a distribution to which Section 355 applies is part of a "plan (or series of related transactions)" pursuant to which one or more persons acquire, directly or indirectly, stock representing a 50-percent or greater interest (within the meaning of Section 355(d)(4)) in the distributing corporation or any controlled corporation, then the distributing corporation shall recognize gain on the distribution as if the stock of the controlled corporation had been sold for its fair market value on the date of the distribution