Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.

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Section 336 of the Internal Revenue Code generally deals with the recognition of gain or loss by a corporation on the distribution of property in complete liquidation. It does not specifically prevent the recognition of a loss when making a pro rata distribution of property to a related person. The limitation on loss recognition in certain related-party transactions is more directly addressed by other provisions, such as Section 267 or Section 707(b), depending on the context.

Section 336 Prevents Recognition of a Loss When Making a Pro