NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 1113

SENATE BILL 355

AN ACT TO AMEND G.S. 105-130.5 TO ELIMINATE CAPITAL GAINS TAX TO A CORPORATION SELLING ASSETS UNDER THE TWELVE-MONTH PLAN OF LIQUIDATION AS ALLOWED BY SECTION 337 OF THE INTERNAL REVENUE CODE.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 105-130.5(c), is hereby amended by deleting subdivision (1) thereof and renumbering subdivisions (2) and (3) as subdivisions (1) and (2).

Sec. 2.  G.S. 105-130.5 is hereby further amended by adding thereto a new subsection to be designated subsection (d) and to read as follows:

"(d)      No gain or loss shall be recognized to a corporation from the sale or exchange by it of property within the twelve-month period beginning on the date of the adoption by said corporation of a plan of complete liquidation if such gain or loss would not be recognized to such corporation for Federal Income Tax purposes under the provisions of Section 337 of the Federal Internal Revenue Code of 1954, including amendments, if any.

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall be effective from and after its ratification.

In the General Assembly read three times and ratified, this the 30th day of June, 1969.