Stroock Special Bulletin
"Good Things Come to Those Who Wait: The Section 336(e) Regulations Finally Finalized"
First added to the Code by the venerable Tax Reform Act of 1986 as part of the General Utilities repeal, Section 336(e) has long held out the promise of an election to treat certain stock sales and distributions to individuals as asset sales for tax purposes. However, without enabling regulations, Section 336(e) remained a dead letter for over a quarter century. At long last, as of May 15, 2013, Section 336(e) elections are a reality.
This Stroock Special Bulletin, which examines the nuances of the new Section 336(e) election, consists of three parts: 1) an overview of Section 336(e), 2) a detailed explanation of the contents of the final regulations, and 3) an examination of some of the unresolved issues presented by the final regulations.