### Question
How does Income Taxes define disqualified property?


### Answer
Under *26 U.S.C. § 336*, **disqualified property** is defined as:

> any property which is acquired by the liquidating corporation in a transaction to which section 351 applied, or as a contribution to capital, during the 5-year period ending on the date of the distribution

#### Citation:
  - *26 U.S.C. § 336*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART II-CORPORATE LIQUIDATIONS > Subpart B-Effects on Corporation**

