26 CFR §53.4944-5 — -5 Definitions.

1. (a)Taxable period
   1. (1)In general. For purposes of section 4944, the term “taxable period” means, with respect to any investment which jeopardizes the carrying out of a private foundation's exempt purposes, the period beginning with the date on which the amount is invested and ending on the earliest of:
      1. (i)The date of mailing of a notice of deficiency under section 6212 with respect to the tax imposed on the making of the investment by section 4944(a)(1);
      2. (ii)The date on which the amount invested is removed from jeopardy; or
      3. (iii)The date on which the tax imposed by section 4944(a)(1) is assessed.
   2. (2)Special rule. Where a notice of deficiency referred to in subparagraph (1) (i) of this paragraph is not mailed because there is a waiver of the restrictions on assessment and collection of a deficiency, or because the deficiency is paid, the date of filing of the waiver or the date of such payment, respectively, shall be treated as the end of the taxable period.
2. (b)Removal from jeopardy. An investment which jeopardizes the carrying out of a private foundation's exempt purposes shall be considered to be removed from jeopardy when:
   1. (1)The foundation sells or otherwise disposes of the investment, and
   2. (2)The proceeds of such sale or other disposition are not themselves investments which jeopardize the carrying out of such foundation's exempt purposes.
3. (c)Examples. The provisions of this section may be illustrated by the following examples:
4. (d)Cross reference. For rules relating to taxable events that are corrected within the correction period, defined in section 4963(e), see section 4961(a) and the regulations thereunder.