...of a corporation that it controlled immediately before the distribution, (2) the transaction is not used principally as a device for the distribution of earnings and profits and (3) the requirements of section 355 (b) of the Code (relating to active business) are satisfied,...

...as a device for the distribution of die position that (a) the distribution of stock to petitioners was used principally as a device for the distribution of earnings and profits of RBS or Teragram or both; (b) Teragram was not engaged in the active conduct of a trade or business...

...Immediately before the distribution, the position that (a) the distribution of stock to petitioners was used principally as a device for the distribution of earnings and prolits of RBS or Teragram or both; (b) Teragram was not engaged in the active conduct of a trade or...

...upon prior to the distribution, the mere fact of such sale is not determinative that the transaction was used principally as a device for the distribution of earnings and profits, but such fact will be evidence that the transaction was used principally as such a device. (2) A sale...

...355 imposes two basic conditions for the favorable tax results. First, the distribution may not be used principally as a device for the distribution of earnings and profits of either the distributing corporation or its former subsidiary. This restates in statutory form the...

...for at least five years prior to the transaction. In addition, a section 355 transaction may not be used principally as a device for the distribution of earnings and profits of either the parent or the subsidiary. These requirements are adequate safeguards against the abuse...

...distributed corporation.342 341 Tax free treatment under section 355 does not apply to a transaction that is used principally as a "device" for the distribution of earnings and profits. Sec. 355(a)(l)(B). The statute does not contain any absolute percentage threshold of nonbusiness assets...

...clause (A) — would deny tax-free treatment where it appears that any of the corporations involved is used principally as a device for the distribution of earnings and profits to shareholders. This change merely carries out the purpose of one of the limitations now in the bill,...

...corporate business purpose or purposes for a transaction are evidence that the transaction was not used principally as a device for the distribution of earnings and profits within the meaning of section 355(a)(l)(B). See paragraph (d)(3)(ii) of this section. (5) Examples....

...upon prior to the distribution, the mere fact of such sale is not determinative that the transaction was used principally as a device for the distribution of earnings and profits, but such fact will be evidence that the transaction was used principally as such a device. (2) A sale...