Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section514&num=0&edition=prelim
Timestamp: 2020-01-26 08:27:22
Document Index: 187108933

Matched Legal Cases: ['§ 514', '§5', '§121', '§7', '§1308', '§1901', '§2', '§110', '§174', '§1034', '§201', '§1603', '§1878', '§10214', '§1016', '§2004', '§7811', '§13144', '§247', '§702', '§412', '§866', '§661', '§702', '§13144', '§1016', '§10214', '§1878', '§1018', '§1878', '§1018', '§1034', '§1906', '§121', '§866', '§247', '§13144', '§1016', '§10214', '§1034', '§110', '§110', '§1308', '§1607']

[USC02] 26 USC 514: Unrelated debt-financed income
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26 USC 514: Unrelated debt-financed income Text contains those laws in effect on January 25, 2020
In computing under section 512 the unrelated business taxable income for any taxable year-
For purposes of this section, the term "debt-financed property" means any property which is held to produce income and with respect to which there is an acquisition indebtedness (as defined in subsection (c)) at any time during the taxable year (or, if the property was disposed of during the taxable year, with respect to which there was an acquisition indebtedness at any time during the 12-month period ending with the date of such disposition), except that such term does not include-
If the first sentence of subparagraph (A) is inapplicable only because-
Subparagraphs (A) and (B)-
For purposes of this section, the term "acquisition indebtedness" means, with respect to any debt-financed property, the unpaid amount of-
Where State law provides that-
For purposes of this section, the term "acquisition indebtedness" does not include an obligation to pay an annuity which-
(C) is payable under a contract which-
For purposes of this section, the term "acquisition indebtedness" does not include-
(ii) indebtedness incurred by a small business investment company licensed after the date of the enactment of the American Jobs Creation Act of 2004 under the Small Business Investment Act of 1958 if such indebtedness is evidenced by a debenture-
Subparagraph (A)(ii) shall not apply with respect to any small business investment company during any period that-
The provisions of subparagraph (A) shall not apply in any case in which-
(iv) the real property is acquired by a qualified trust from, or is at any time after the acquisition leased by such trust to, any person who-
(vi) the real property is held by a partnership unless the partnership meets the requirements of clauses (i) through (v) and unless-
For purposes of this paragraph, the term "qualified organization" means-
A partnership meets the requirements of this subparagraph if-
In computing under section 512 the unrelated business taxable income of a disqualified holder of an interest in an organization described in section 501(c)(25), there shall be taken into account-
Except as otherwise provided by regulations-
For purposes of this clause, there is a qualifying sale by a financial institution if-
Property is described in this clause if such property is foreclosure property, or is real property which-
For purposes of this subparagraph, the term "financial institution" means-
(Aug. 16, 1954, ch. 736, 68A Stat. 172 ; Pub. L. 86–667, §5, July 14, 1960, 74 Stat. 536 ; Pub. L. 91–172, title I, §121(d)(1), (3)(A), (B), Dec. 30, 1969, 83 Stat. 543 , 548; Pub. L. 93–625, §7(b)(2), Jan. 3, 1975, 88 Stat. 2115 ; Pub. L. 94–455, title XIII, §1308(a), title XIX, §§1901(a)(72), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1729 , 1776, 1834; Pub. L. 95–345, §2(c), Aug. 15, 1978, 92 Stat. 482 ; Pub. L. 96–605, title I, §110(a), Dec. 28, 1980, 94 Stat. 3525 ; Pub. L. 98–369, div. A, title I, §174(b)(5)(B), title X, §1034(a), (b), July 18, 1984, 98 Stat. 707 , 1039, 1040; Pub. L. 99–514, title II, §201(d)(9), title XVI, §1603(b), title XVIII, §1878(e), Oct. 22, 1986, 100 Stat. 2141 , 2768, 2903; Pub. L. 100–203, title X, §10214(a), (b), Dec. 22, 1987, 101 Stat. 1330–407 ; Pub. L. 100–647, title I, §§1016(a)(5)(A), (6), 1018(u)(13), title II, §2004(h), Nov. 10, 1988, 102 Stat. 3574 , 3575, 3590, 3603; Pub. L. 101–239, title VII, §7811(l), Dec. 19, 1989, 103 Stat. 2412 ; Pub. L. 103–66, title XIII, §13144(a), (b), Aug. 10, 1993, 107 Stat. 441 , 442; Pub. L. 108–357, title II, §247(a), title VII, §702(b), Oct. 22, 2004, 118 Stat. 1449 , 1546; Pub. L. 109–135, title IV, §412(ee)(2), Dec. 21, 2005, 119 Stat. 2639 ; Pub. L. 109–280, title VIII, §866(a), Aug. 17, 2006, 120 Stat. 1025 .)
The Tax Reform Act of 1976, referred to in subsec. (b)(3)(C)(iii), is Pub. L. 94–455, Oct. 4, 1976, 90 Stat. 1520 , as amended, which was enacted Oct. 4, 1976. For complete classification of this Act to the Code, see Tables.
The Small Business Investment Act of 1958, referred to in subsec. (c)(6)(A)(ii), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689 , as amended, which is classified principally to chapter 14B (§661 et seq.) of Title 15, Commerce and Trade. Section 303(a) of the Act is classified to section 683(a) of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 661 of Title 15 and Tables.
2006-Subsec. (c)(9)(C)(iv). Pub. L. 109–280 added cl. (iv).
2005-Subsec. (b)(1)(E). Pub. L. 109–135 substituted "section 512(b)(19)" for "section 512(b)(18)".
2004-Subsec. (b)(1)(E). Pub. L. 108–357, §702(b), added subpar. (E).
1993-Subsec. (c)(9)(A). Pub. L. 103–66, §13144(b)(1), inserted at end "For purposes of this paragraph, an interest in a mortgage shall in no event be treated as real property."
1989-Subsec. (c)(9)(E), (F). Pub. L. 101–239 redesignated the subpar. (E), relating to special rules for organizations described in section 501(c)(25), as (F).
1988-Subsec. (c)(9)(B). Pub. L. 100–647, §1016(a)(6), substituted "this paragraph" for "clause (vi)" in last sentence.
1987-Subsec. (c)(9)(B)(vi). Pub. L. 100–203, §10214(a), amended cl. (vi) generally. Prior to amendment, cl. (vi) read as follows: "the real property is held by a partnership (which does not fail to meet the requirements of clauses (i) through (v)), and-
1986-Subsec. (c)(9)(B). Pub. L. 99–514, §1878(e)(1), as amended by Pub. L. 100–647, §1018(u)(13)(A), which directed amendment of penultimate sentence by substituting "is unrelated business taxable income" for "would be unrelated business taxable income (determined without regard to this paragraph)", was executed by making the substitution for "would be unrelated business taxable income (determined without regard to this paragraph", as the probable intent of Congress.
Subsec. (c)(9)(B)(vi). Pub. L. 99–514, §1878(e)(3), as amended by Pub. L. 100–647, §1018(u)(13)(B), amended cl. (vi) generally. Prior to amendment, cl. (vi) read as follows: "the real property is held by a partnership unless the partnership meets the requirements of clauses (i) through (v) and unless-
1984-Subsec. (c)(9). Pub. L. 98–369, §1034(a), amended par. (9) generally, substituting provisions relating to real property acquired by a qualified organization for provisions relating to real property acquired by a qualified trust, with "qualified organization" expanded to include trusts constituting qualified trusts under section 401 of this title as well as organizations described in section 170(b)(1)(A)(ii) of this title and their affiliated support organizations described in section 509(a) of this title.
1980-Subsec. (c)(9). Pub. L. 96–605 added par. (9).
1978-Subsec. (c)(8). Pub. L. 95–345 added par. (8).
1976-Subsecs. (a)(1), (b)(3)(A), (B)(ii). Pub. L. 94–455, §1906(b)(13)(A), struck out "or his delegate" after "Secretary".
1975-Subsec. (b)(3)(D). Pub. L. 93–625 struck out last sentence providing for allowance and payment of interest on any overpayment for a taxable year resulting from application of subpar. (B) after actual use condition was satisfied at rate of 4 in lieu of 6 percent per annum.
1969-Subsec. (a). Pub. L. 91–172, §121(d)(1), substituted "Unrelated debt-financed income" for "Business leases" in heading and substituted in text material covering unrelated debt-financed income and deductions for material covering business lease rents and deductions.
1960-Subsec. (c)(8). Pub. L. 86–667 added par. (8).
Pub. L. 109–280, title VIII, §866(b), Aug. 17, 2006, 120 Stat. 1025 , provided that: "The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning on or after the date of enactment of this Act [Aug. 17, 2006]."
Pub. L. 108–357, title II, §247(b), Oct. 22, 2004, 118 Stat. 1449 , provided that: "The amendment made by this section [amending this section] shall apply to indebtedness incurred after the date of the enactment of this Act [Oct. 22, 2004] by a small business investment company licensed after the date of the enactment of this Act."
Pub. L. 103–66, title XIII, §13144(c), Aug. 10, 1993, 107 Stat. 442 , provided that:
"(1) In general.-The amendments made by this section [amending this section] shall apply to acquisitions on or after January 1, 1994.
"(2) Small leases.-The provisions of section 514(c)(9)(G)(i) of the Internal Revenue Code of 1986 shall, in addition to any leases to which the provisions apply by reason of paragraph (1), apply to leases entered into on or after January 1, 1994."
Pub. L. 100–647, title I, §1016(a)(5)(B), Nov. 10, 1988, 102 Stat. 3575 , provided that: "The amendment made by subparagraph (A) [amending this section] shall apply with respect to interests in the organization acquired after June 10, 1987, except that such amendment shall not apply to any such interest acquired after June 10, 1987, pursuant to a binding written contract in effect on June 10, 1987, and at all times thereafter before such acquisition."
Pub. L. 100–203, title X, §10214(c), Dec. 22, 1987, 101 Stat. 1330–408 , provided that: "The amendments made by this section [amending this section] shall apply to-
Pub. L. 98–369, div. A, title X, §1034(c), July 18, 1984, 98 Stat. 1040 , provided that:
"(1) In general.-The amendments made by this section [amending this section] shall apply to indebtedness incurred after the date of the enactment of this Act [July 18, 1984].
"(2) Exception for indebtedness on certain property acquired before january 1, 1985.-
"(B) A partnership is described in this subparagraph if-
"(3) Exception for indebtedness on certain property acquired before january 1, 1986.-
"(B) A partnership is described in this paragraph if-
"(C) Binding contracts.-For purposes of this paragraph, property shall be deemed to have been acquired before January 1, 1986, if such property is acquired pursuant to a written contract which, on January 1, 1986, and at all times thereafter, required the acquisition of such property and such property is placed in service not later than 6 months after the date such contract was entered into."
Pub. L. 96–605, title I, §110(c), Dec. 28, 1980, 94 Stat. 3526 , provided that: "The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1980."
Pub. L. 96–605, title I, §110(b), Dec. 28, 1980, 94 Stat. 3526 , provided that: "The amendment made by subsection (a) [amending this section] shall not be considered a precedent with respect to extending such amendment (or similar rules) to any other person."
Pub. L. 94–455, title XIII, §1308(b), Oct. 4, 1976, 90 Stat. 1729 , provided that: "The amendment made by this section [amending this section] shall apply to taxable years ending after December 31, 1969."
Pub. L. 99–514, title XVI, §1607, Oct. 22, 1986, 100 Stat. 2771 , provided that: "For purposes of applying section 514(c) of the Internal Revenue Code of 1986, with respect to a disposition during calendar year 1986 or calendar year 1987 of land acquired during calendar year 1984, the term 'acquisition indebtedness' does not include indebtedness incurred in connection with bonds issued after January 1, 1984, and before July 19, 1984, on behalf of an organization which is a community college and which is described in section 511(a)(2)(B) of such Code."