Common use of Special rule for dispositions of stock Clause in Contracts

Special rule for dispositions of stock. Notwithstanding the provisions of paragraph (m)(4)(i) of this section, if a trust disposes of all of the stock which it holds in an S corporation, then, with respect to that corporation, any person who first met the definition of a potential current beneficiary dur- ing the 1-year period ending on the date of such disposition is not a poten- tial current beneficiary and thus is not a shareholder of that corporation.

Special rule for dispositions of stock. Notwithstanding the provisions of paragraph (m)(4)(i) of this section, if a trust disposes of all of the stock which it holds in an its S corporation, then, with respect to that corporationcorpora- tion stock, any person who first met the definition of a potential current beneficiary dur- ing during the 160-year day period ending on the date of such disposition is not a poten- tial potential current beneficiary and thus is not a shareholder of that corporation.