[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.851-3]

[Page 11-12]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.851-3  Rules applicable to section 851(b)(4).

    In determining the value of the taxpayer's investment in the 
securities of any one issuer, for the purposes of subparagraph (B) of 
section 851(b)(4), there shall be included its proper proportion of the 
investment of any other corporation, a member of a controlled group, in 
the securities of such issuer. See example 4 in Sec. 1.851-5. For 
purposes of Secs. 1.851-2, 1.851-4, 1.851-5, and 1.851-6, the terms 
``controls'', ``controlled group'',

[[Page 12]]

and ``value'' have the meaning assigned to them by section 851(c). All 
other terms used in such sections have the same meaning as when used in 
the Investment Company Act of 1940 (15 U.S.C., chapter 2D) or that act 
as amended.