{"data":{"id":"us/26-cfr-1.303-3","jurisdiction":"us","citation":"26 CFR 1.303-3","heading":"-3 Application of other sections.","body":"(a) The sole effect of section 303 is to exempt from tax as a dividend a distribution to which such section is applicable when made in redemption of stock includible in a decedent's gross estate. Such section does not, however, in any other manner affect the principles set forth in sections 302 and 306. Thus, if stock of a corporation is owned equally by A, B, and the C Estate, and the corporation redeems one-half of the stock of each shareholder, the determination of whether the distributions to A and B are essentially equivalent to dividends shall be made without regard to the effect which section 303 may have upon the taxability of the distribution to the C Estate.\n(b) See section 304 relative to redemption of stock through the use of related corporations.","path":["Title 26—Internal Revenue","CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY","SUBCHAPTER A—INCOME TAX","PART 1—INCOME TAXES"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-26.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:25:11Z","sha256":"97f223551edaa3ad3d06e46bf322478c4b251fc64a24ceebf86b7fea0a238745","source_id":"us-cfr","stale":true,"prev":"us/26-cfr-1.303-2","next":"us/26-cfr-1.304-1"},"notice":"GroundRules: Original legal text. Not legal advice."}