D.2. Exceptions

(1) A distribution of property for purposes described in Sections 170(c)(1) or

170(c)(2)(B) which is a qualifying distribution under Section 4942 shall not be treated as a sale or other disposition of property.

Note: Treas. Reg. 53.4940-1(f)(1) has not been updated to reflect PPA 2006 and the Tax Technical Corrections Act of 2007, Public Law 110-172, which broadened capital gain net income to include capital gains from appreciation, including capital gains or losses from the sale or other disposition of assets used to further an exempt purpose.