Source: http://uscode.house.gov/view.xhtml?hl=false&edition=2005&req=granuleid%3AUSC-2011-title26-section1362&num=0
Timestamp: 2017-09-22 18:39:28
Document Index: 732430358

Matched Legal Cases: ['§2', '§102', '§721', '§1006', '§1305', '§532', '§231', '§413', '§2', '§1808']

[USC04] 26 USC 1362: Election; revocation; termination
26 USC 1362: Election; revocation; termination Text contains those laws in effect on January 2, 2006
A prior taxable year shall not be taken into account under clause (i) unless-
(I) such taxable year began after December 31, 1981, and
(II) the corporation was an S corporation for such taxable year.
(B) Gross receipts from sales of capital assets (other than stock and securities)
For purposes of this paragraph, in the case of dispositions of capital assets (other than stock and securities), gross receipts from such dispositions shall be taken into account only to the extent of the capital gain net income therefrom.
Except as otherwise provided in this subparagraph, the term "passive investment income" means gross receipts derived from royalties, rents, dividends, interest, annuities, and sales or exchanges of stock or securities (gross receipts from such sales or exchanges being taken into account for purposes of this paragraph only to the extent of gains therefrom).
(iv) Treatment of certain liquidations
Gross receipts derived from sales or exchanges of stock or securities shall not include amounts received by an S corporation which are treated under section 331 (relating to corporate liquidations) as payments in exchange for stock where the S corporation owned more than 50 percent of each class of stock of the liquidating corporation.
(D) Special rule for options and commodity dealings
In the case of any options dealer or commodities dealer, passive investment income shall be determined by not taking into account any gain or loss (in the normal course of the taxpayer's activity of dealing in or trading section 1256 contracts) from any section 1256 contract or property related to such a contract.
(I) Options dealer
The term "options dealer" has the meaning given such term by section 1256(g)(8).
(II) Commodities dealer
The term "commodities dealer" means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission.
(III) Section 1256 contract
The term "section 1256 contract" has the meaning given to such term by section 1256(b).
(E) Treatment of certain dividends
(F) Exception for banks; etc.
In the case of a bank (as defined in section 581),1 a depository institution holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)),2 the term "passive investment income" shall not include-
(1) an election under subsection (a), section 1361(b)(3)(B)(ii), or section 1361(c)(1)(A)(ii) by any corporation-
(B) was terminated under paragraph (2) or (3) of subsection (d), section 1361(b)(3)(C), or section 1361(c)(1)(D)(iii),
then, notwithstanding the circumstances resulting in such ineffectiveness or termination, such corporation shall be treated as an S corporation or a qualified subchapter S subsidiary, as the case may be 3 during the period specified by the Secretary.
(Added Pub. L. 97–354, §2, Oct. 19, 1982, 96 Stat. 1672 ; amended Pub. L. 98–369, div. A, title I, §102(d)(2), title VII, §721(g), (h), (l), (t), July 18, 1984, 98 Stat. 623 , 968, 969, 971; Pub. L. 100–647, title I, §§1006(f)(6), 1007(g)(9), Nov. 10, 1988, 102 Stat. 3406 , 3435; Pub. L. 104–188, title I, §§1305(a), (b), 1308(c), 1311(b)(1), Aug. 20, 1996, 110 Stat. 1779 , 1780, 1783, 1784; Pub. L. 106–170, title V, §532(c)(2)(T), Dec. 17, 1999, 113 Stat. 1931 ; Pub. L. 108–357, title II, §§231(b), 237(a), 238(a), Oct. 22, 2004, 118 Stat. 1433 , 1436; Pub. L. 109–135, title IV, §413(b), Dec. 21, 2005, 119 Stat. 2641 .)
Section 1305(c) of Pub. L. 104–188 provided that: "The amendments made by subsections (a) and (b) [amending this section] shall apply with respect to elections for taxable years beginning after December 31, 1982."
Section 1317(b) of Pub. L. 104–188 provided that: "For purposes of section 1362(g) of the Internal Revenue Code of 1986 (relating to election after termination), any termination under section 1362(d) of such Code in a taxable year beginning before January 1, 1997, shall not be taken into account."
Section 102(d)(3) of Pub. L. 98–369, as amended by Pub. L. 99–514, §2, title XVIII, §1808(a)(2), Oct. 22, 1986, 100 Stat. 2095 , 2817, provided that: "If a commodities dealer or an options dealer-