43-1158. Treatment of installment obligations
on cessation of corporate activities
If a corporation has elected to report income from the sale or other disposition of
property on the installment method, and the entire income from the sale has not been
reported before the year the corporation ceases to be subject to the tax imposed by this
title, the corporation shall report the unreported income in the last year in which the
corporation is subject to the tax. This section does not apply if the installment
obligation is transferred pursuant to a reorganization to another taxpayer subject to tax
under this title as the transferee, but capital losses of the transferee may not be used
to offset income from the installment obligation transferred from a corporation which has
ceased to be subject to the tax.
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