26 U.S.C. § 1353 — Notional shipping income
submitted 22 years ago by Pub. L. 108-357 to r/title-26-INTERNAL-REVENUE-CODE · 337 words · no verdicts yet
An electing corporation's notional shipping income is calculated vessel by vessel. The calculation uses daily amounts based on net tonnage and the days operated in United States foreign trade, with allocation rules for multiple operators.
(a) The corporation's notional shipping income is the sum of the amounts under (b) for each qualifying vessel* it operates. (b) (1) For each vessel, multiply daily notional shipping income by the number of days in the tax year that the corporation* operated it as a qualifying vessel in United States foreign trade*. (2) If some vessel income is excluded from gross income under section 883 or otherwise, use the corresponding ratio: foreign-trade gross income divided by that income plus the excluded income, multiplied by the otherwise determined shipping income. (c) Daily income is 40 cents for each 100 net tons up to 25,000 tons, plus 20 cents for each 100 tons over 25,000. (d) If two or more people operate a vessel during a period, allocate its notional income by their ownership, charter, and operating-agreement interests, or another regulatory basis.
For purposes of this subchapter, the notional shipping income of an electing corporation* shall be the sum of the amounts determined under subsection (b) for each qualifying vessel* operated by such electing corporation*.
For purposes of subsection (a), the amount of notional shipping income of an electing corporation for each qualifying vessel for the taxable year* shall equal the product of—
the daily notional shipping income, and
the number of days during the taxable year that the electing corporation operated such vessel as a qualifying vessel in United States foreign trade*.
In the case of a qualifying vessel any of the income from which is not included in gross income by reason of section 883 or otherwise, the amount of notional shipping income from such vessel for the taxable year shall be the amount which bears the same ratio to such shipping income (determined without regard to this paragraph) as the gross income from the operation of such vessel in the United States foreign trade bears to the sum of such gross income and the income so excluded.
For purposes of subsection (b), the daily notional shipping income from the operation of a qualifying vessel is—
40 cents for each 100 tons of so much of the net tonnage of the vessel as does not exceed 25,000 net tons, and
20 cents for each 100 tons of so much of the net tonnage of the vessel as exceeds 25,000 net tons.
If for any period 2 or more persons are operators of a qualifying vessel, the notional shipping income from the operation of such vessel for such period shall be allocated among such persons on the basis of their respective ownership, charter, and operating agreement interests in such vessel or on such other basis as the Secretary* may prescribe by regulations.
Source credit: (Added Pub. L. 108–357, title II, § 248(a), Oct. 22, 2004, 118 Stat. 1450; amended Pub. L. 109–135, title IV, § 403(g)(1)(A), Dec. 21, 2005, 119 Stat. 2624.)
- 2004Enacted · Pub. L. 108-357 · 118 Stat. 1450
- 2005Amended · Pub. L. 109-135 · 119 Stat. 2624
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-357 on 2004-10-22.
all 0 arguments · sorted by: best
no arguments yet — make the first case