- 12 -
attribution rules of sections 318(a)(1) and 318(a)(5)(B) do not
apply, but an individual, his spouse, his parents, his children,
and his grandparents are treated as a single shareholder.” H.
Conf. Rept. 99-841 (Vol. II), at II-182 (1986), 1986-3 C.B. (Vol.
4) 1, 182.10
D. Other Considerations
1. Family Aggregation Under Pre-1986 Act Section 382
a. General Structure of the Statute
Prior to the amendment of section 382 by the 1986 Act,
section 382 contained separate rules for ownership changes
resulting from purchases and redemptions, see former sec. 382(a),
and those resulting from corporate reorganizations, see former
sec. 382(b). Under the “purchase” rules of former section
382(a), ownership changes were ascertained by reference to the
holdings of the 10 largest shareholders at the end of the
corporation’s taxable year (as compared to their holdings at the
beginning of such taxable year or the preceding taxable year).
Former sec. 382(a)(1) and (2).
10 As noted supra part I.B., the members of an individual’s
family described in sec. 318(a)(1) (to which sec. 382(l)(3)(A)(i)
refers) are his spouse, children, grandchildren, and parents.
Regarding the possible significance of the conferees’ reference
to “grandparents” in lieu of “grandchildren”, see infra part
III.E.4.
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