3 October 2011 External T.I. 2011-0421341E5 - Paragraphs 55(3.1)(c) or (d) -- summary under Paragraph 55(3.1)(c)

before a distribution made in the course of a butterfly reorganization, Opco sells real estate used in operating its business (and representing more than 10% of the value of the business) to a non-related person for fair market value consideration consisting solely of cash. S. 55(3.1)(c) would not apply because the real property would not be described in s. 55(3.1)(c)(ii); and similarly s. 55(3.1)(d) would not apply. S. 55(3.1)(a) would not apply because of the exception in s. 55(3.1)(a)(iv)(C). 8 June 2005 Comfort Letter distinguished.