Textron Inc. and Subsidiary Companies - Page 16

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               The only authority cited by petitioner in support of its               
          position is Tech. Adv. Mem. 96-27-003 (Feb. 28, 1996).12   The              
          TAM concluded that the definition of “redemption” in section                
          317(b) may have some general application in the determination of            
          whether a redemption took place for the purposes of section                 
          1.1502-13(f)(1), Income Tax Regs.  Petitioner reads into this               
          that respondent’s administrative position was that the definition           
          of property set forth in section 317(a) is similarly relevant to            
          the interpretation of the consolidated return regulations.  This            
          assumption is inaccurate.  In G.C.M. 39,608 (Mar. 5, 1987),13               
          respondent determined that the gain realized on a consolidated              
          subsidiary’s distribution of its parent’s stock to its parent in            
          a section 311 transaction resulted in a deferral of gain pursuant           
          to section 1.1502-14(c)(1), Income Tax Regs.  The G.C.M. found              
          the stock of the parent corporation to be “property” for purposes           
          of the consolidated return regulations even though the stock was            
          held by the parent as treasury stock after the distribution.  The           
          G.C.M. concurrently looked to the section 317(b) definition of              

               12Technical advice memoranda (TAMs) and private letter                 
          rulings have no precedential value but merely represent the                 
          Commissioner’s position as to a specific set of facts.  See sec.            
          6110(k)(3); Bunney v. Commissioner, 114 T.C. ___, ___ n.2 (2000)            
          (slip op. at 5).                                                            
               13A general counsel memorandum is a legal opinion from one             
          division of the Commissioner’s Office of Chief Counsel to another           
          and is not binding on this Court.  See Old Harbor Native Corp. v.           
          Commissioner, 104 T.C. 191, 207 (1995).                                     

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