46 U.S.C. § 53309 — Accumulation of deposits

submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 77 words · no verdicts yet

in plain englishAI-generated · not legal advice

Money still sitting in a construction reserve fund at year's end — as long as it meets section 53310's requirements — counts as money the business reasonably needs to keep, under the tax code's accumulated-earnings rule.

For any taxable year, money still on deposit in a construction reserve fund on the last day of that year is treated as money reasonably retained for the needs of the business, under section 537(a) of the Internal Revenue Code of 1986 — but only for money that already meets section 53310's requirements as of that last day.

the actual law source: uscode.house.gov ↗public domain

For any taxable year, amounts on deposit in a construction reserve fund on the last day of the taxable year, for which the requirements of section 53310 of this title have been satisfied (to the extent they apply on the last day of the taxable year), are deemed to have been retained for the reasonable needs of the business within the meaning of section 537(a) of the Internal Revenue Code of 1986 (26 U.S.C. 537(a)).

Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)

history & why it existsrecord from the source credit

2006Enacted · Pub. L. 109-304 · 120 Stat. 1589

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.

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