### Question
How does NORMAL TAXES AND SURTAXES define stripped preferred stock?


### Answer
Under *26 U.S.C. § 305*, **stripped preferred stock** is defined as:

> any stock described in subparagraph (B) if there has been a separation in ownership between such stock and any dividend on such stock which has not become payable

#### Citation:
  - *26 U.S.C. § 305*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart A-Effects on Recipients**

