Source: https://www.law.cornell.edu/uscode/text/26/246A?qt-us_code_tabs=1
Timestamp: 2016-02-10 10:02:36
Document Index: 75934980

Matched Legal Cases: ['§\u202f246', '§\u202f51', '§\u202f611', '§\u202f1804', '§\u202f10221', '§\u202f1012', '§\u202f408', '§\u202f221', '§\u202f221', '§\u202f661', '§\u202f1804', '§\u202f611', '§\u202f51']

§ 246A.
Dividends received deduction reduced where portfolio stock is debt financed
(a) General ruleIn the case of any dividend on debt-financed portfolio stock, there shall be substituted for the percentage which (but for this subsection) would be used in determining the amount of the deduction allowable under section 243 or 245(a) a percentage equal to the product of—
(b) Section not to apply to dividends for which 100 percent dividends received deduction allowableSubsection (a) shall not apply to—
qualifying dividends (as defined in section 243(b) without regard to section 243(d)(4)),[1] and
(c) Debt financed portfolio stockFor purposes of this section—
(2) Portfolio stockThe term “portfolio stock” means any stock of a corporation unless—
(d) Average indebtedness percentageFor purposes of this section—
(1) In generalExcept as provided in paragraph (2), the term “average indebtedness percentage” means the percentage obtained by dividing—
(4) Base periodThe term “base period” means, with respect to any dividend, the shorter of—
(Added Pub. L. 98–369, div. A, title I, § 51(a), July 18, 1984, 98 Stat. 562; amended Pub. L. 99–514, title VI, § 611(a)(4), title XVIII, § 1804(a), Oct. 22, 1986, 100 Stat. 2249, 2798; Pub. L. 100–203, title X, § 10221(d)(2), Dec. 22, 1987, 101 Stat. 1330–409; Pub. L. 100–647, title I, § 1012(l)(1), Nov. 10, 1988, 102 Stat. 3513; Pub. L. 108–311, title IV, § 408(a)(9), Oct. 4, 2004, 118 Stat. 1191; Pub. L. 113–295, div. A, title II, § 221(a)(41)(F), Dec. 19, 2014, 128 Stat. 4044.)
Section 243(d)(4), referred to in subsec. (b)(1), was repealed by Pub. L. 113–295, div. A, title II, § 221(a)(41)(D), Dec. 19, 2014, 128 Stat. 4044.
The Small Business Investment Act of 1958, referred to in subsec. (b)(2), 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. For complete classification of this Act to the Code, see Short Title note set out under section 661 of Title 15 and Tables.
2014—Subsecs. (a), (e). Pub. L. 113–295 struck out “, 244,” after “section 243”.
1986—Subsec. (a). Pub. L. 99–514, § 1804(a), substituted “or 245(a)” for “or 245” and inserted “The preceding sentence shall be applied before any determination of a ratio under paragraph (1) or (2) of section 245(a).”
Subsec. (a)(1). Pub. L. 99–514, § 611(a)(4), substituted “80 percent” for “85 percent”.
Pub. L. 98–369, div. A, title I, § 51(c), July 18, 1984, 98 Stat. 564, provided that: “The amendments made by this section [enacting this section] shall apply with respect to stock the holding period for which begins after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.”