Source: https://www.law.cornell.edu/uscode/text/26/1368
Timestamp: 2017-08-23 02:30:47
Document Index: 524007776

Matched Legal Cases: ['§ 1368', '§ 1368', '§\u202f2', '§\u202f305', '§\u202f721', '§\u202f1879', '§\u202f1309', '§\u202f8232', '§\u202f1309', '§\u202f1309', '§\u202f1309', '§\u202f721', '§\u202f721', '§\u202f311']

U.S. Code › Title 26 › Subtitle A › Chapter 1 › Subchapter S › Part II › § 1368
26 U.S. Code § 1368 - Distributions
(b) S corporation having no earnings and profitsIn the case of a distribution described in subsection (a) by an S corporation which has no accumulated earnings and profits—
(c) S corporation having earnings and profitsIn the case of a distribution described in subsection (a) by an S corporation which has accumulated earnings and profits—
(d) Certain adjustments taken into accountSubsections (b) and (c) shall be applied by taking into account (to the extent proper)—
(ii) Net negative adjustmentFor purposes of clause (i), the term “net negative adjustment” means, with respect to any taxable year, the excess (if any) of—
(f) Restricted bank director stockIf a director receives a distribution (not in part or full payment in exchange for stock) from an S corporation with respect to any restricted bank director stock (as defined in section 1361(f)), the amount of such distribution—
shall be deductible by the corporation for the taxable year of such corporation in which or with which ends the taxable year in which such amount in [1] included in the gross income of the director.
(Added Pub. L. 97–354, § 2, Oct. 19, 1982, 96 Stat. 1680; amended Pub. L. 97–448, title III, § 305(d)(2), Jan. 12, 1983, 96 Stat. 2399; Pub. L. 98–369, div. A, title VII, § 721(r), July 18, 1984, 98 Stat. 970; Pub. L. 99–514, title XVIII, § 1879(m)(1)(B), Oct. 22, 1986, 100 Stat. 2910; Pub. L. 104–188, title I, § 1309(a)(2)–(c), Aug. 20, 1996, 110 Stat. 1783; Pub. L. 110–28, title VIII, § 8232(b), May 25, 2007, 121 Stat. 197.)
1996—Subsec. (d). Pub. L. 104–188, § 1309(a)(2), inserted at end “In the case of any distribution made during any taxable year, the adjusted basis of the stock shall be determined with regard to the adjustments provided in paragraph (1) of section 1367(a) for the taxable year.”
Subsec. (e)(1)(A). Pub. L. 104–188, § 1309(c), substituted “as otherwise provided in this paragraph” for “as provided in subparagraph (B)” and “section 1367(a)(2)” for “section 1367(b)(2)(A)”.
Subsec. (e)(1)(C). Pub. L. 104–188, § 1309(b), added subpar. (C).
1986—Subsec. (e)(1)(A). Pub. L. 99–514 inserted “and no adjustment shall be made for Federal taxes attributable to any taxable year in which the corporation was a C corporation” before period at end.
1984—Subsec. (c). Pub. L. 98–369, § 721(r)(2), inserted “Except to the extent provided in regulations, if the distributions during the taxable year exceed the amount in the accumulated adjustments account at the close of the taxable year, for purposes of this subsection, the balance of such account shall be allocated among such distributions in proportion to their respective sizes.”
Subsec. (e)(1)(A). Pub. L. 98–369, § 721(r)(1), substituted “(except that no adjustment shall be made for income (and related expenses) which is exempt from tax under this title and the phrase ‘(but not below zero)’ shall be disregarded in section 1367(b)(2)(A))” for “(except that no adjustment shall be made for income which is exempt from tax under this title and no adjustment shall be made for any expense not deductible in computing the corporation’s taxable income and not properly chargeable to capital account)”.
Pub. L. 97–448, title III, § 311(c)(4), Jan. 12, 1983, 96 Stat. 2411, provided that:
“The amendments made by subsection (d) of section 305 [amending this section and sections 221, 1374, and 4975 of this title, enacting provisions set out as a note under section 1361 of this title, and amending provisions set out as a note under section 1361 of this title] shall take effect on the date of the enactment of the Subchapter S Revision Act of 1982 [Oct. 19, 1982].”
Accumulated Adjustments Account : 2014-11-14
Accumulated Adjustments Account : 2014-10-03
Adjustment to Basis of Stock of, and Indebtedness Owing, Shareholders : 2014-10-03
Taxability of Corporation on Distribution : 2014-05-23
Accumulated Adjustments Account : 2014-05-23
Adjustment to Basis of Stock of, and Indebtedness Owing, Shareholders : 2014-05-23
Definitions Relating to Corporate Reorganizations : 2011-04-15
Distributions : 2011-04-15
Accumulated Adjustments Account : 2011-04-15
Change in Identity, etc. Type F : 2011-04-15
Qualified Subchapter S Subsidiary : 2007-06-22
Accumulated Adjustments Account : 2007-06-22
Change in Identity, etc. Type F : 2007-06-22
Tax Imposed On Certain Built-In Gains for Corporations Electing S Status After 12 31 86 : 2007-06-22
Distributions : 2004-12-17
Distributions : 2001-03-16
Coordination with Subchapter C Rules : 2001-03-16
Distribution Treated as an Exchange Under Section 302 : 2001-03-16
Accumulated Adjustments Account : 2001-03-09
Distribution to which Section 301 Applies : 2001-03-09
Accumulated Adjustments Account : 2000-10-13
Distribution to which Section 301 Applies : 2000-10-13
Coordination with Subchapter C Rules : 2000-10-13
Passive Investment Income : 2000-03-17
Late Elections : 2000-03-17
Distributions : 2000-03-17
Accumulated Adjustments Account : 1999-11-12
Constructive Dividend : 1999-11-12
Coordination with Subchapter C Rules : 1999-11-12