46 U.S.C. § 53507 — Nontaxation of deposits

submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 231 words · no verdicts yet

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Money deposited in the fund, and its investment earnings, are excluded from taxable income under listed rules. Gains from selling an agreement vessel aren't taxed if the proceeds go into the fund. This treatment only applies if the deposit is made on time under joint regulations.

(a) Tax Treatment. Subject to (b), under the tax code: (1) taxable income for the year is reduced by the amount deposited from the income described in section 53505(a)(1); (2) a gain from a sale or similar transaction described in section 53505(a)(3) isn't counted if the net proceeds are deposited in the fund; (3) earnings from investing fund money — including gains and losses — aren't counted; (4) a corporation's earnings and profits are figured without regard to this chapter; and (5) fund money isn't counted when applying the tax under section 531 of the tax code. (b) Condition. This section applies to an amount only if it's deposited in the fund within the time set by joint regulations.

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

(a)Tax Treatment.—

Subject to subsection (b), under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.)—

(1)

taxable income (determined without regard to this chapter and section 7518 of such Code (26 U.S.C. 7518)) for the taxable year shall be reduced by the amount deposited for the taxable year out of amounts referred to in section 53505(a)(1) of this title;

(2)

a gain from a transaction referred to in section 53505(a)(3) of this title shall not be taken into account if an amount equal to the net proceeds (as defined in joint regulations) from the transaction is deposited in the fund;

(3)

the earnings (including gains and losses) from the investment and reinvestment of amounts held in the fund shall not be taken into account;

(4)

the earnings and profits of a corporation (within the meaning of section 316 of such Code (26 U.S.C. 316)) shall be determined without regard to this chapter and section 7518 of such Code (26 U.S.C. 7518); and

(5)

in applying the tax imposed by section 531 of such Code (26 U.S.C. 531), amounts held in the fund shall not be taken into account.

(b)Condition.—

This section applies to an amount only if the amount is deposited in the fund under the agreement within the time provided in joint regulations.

Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1594.)

history & why it existsrecord from the source credit

2006Enacted · Pub. L. 109-304 · 120 Stat. 1594

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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