Source: http://taxtv.com/code/00095-USCODE-2011-title26-subtitleA-chap1-subchapA-partVI-sec56/
Timestamp: 2017-06-28 02:10:23
Document Index: 55148653

Matched Legal Cases: ['§56', '§56', '§56', '§11801', '§701', '§10202', '§1002', '§2001', '§5041', '§6079', '§7205', '§11103', '§1915', '§13115', '§1601', '§312', '§402', '§1212', '§4006', '§4', '§1', '§314', '§102', '§417', '§1202', '§403', '§101', '§248', '§422', '§835', '§1326', '§403', '§17', '§11', '§3022', '§706', '§1008', '§13', '§9013', '§9013', '§301', '§501', '§601', '§2001', '§203', '§301', '§202', '§141', '§101', '§101', '§331', '§201', '§201', '§201', '§306', '§474', '§1171', '§701', '§1008', '§706', '§11', '§11', '§403', '§403', '§403', '§403', '§248', '§101', '§835', '§417', '§102', '§402', '§402', '§312', '§1212', '§1702', '§1702', '§1704', '§1601', '§1704', '§1702', '§1621', '§13115', '§13227', '§1915', '§1915', '§1915', '§11812', '§11801', '§11801', '§11801', '§11531', '§11801', '§11801', '§11704', '§7815', '§7612', '§7811', '§7611', '§7611', '§7611', '§7611', '§7611', '§7611', '§7611', '§7611', '§7611', '§1007', '§1002', '§5041', '§7815', '§1007', '§1007', '§2004', '§1007', '§1007', '§1007', '§1007', '§1007', '§2004', '§1007', '§2004', '§1007', '§1007', '§2001', '§1007', '§1007', '§1007', '§1007', '§1007', '§6079', '§1007', '§1007', '§10202', '§9013', '§13', '§1008', '§1503', '§708', '§3022', '§101', '§248', '§422', '§403', '§1202', '§102', '§403', '§1', '§314', '§5', '§3', '§3', '§712', '§706', '§11832', '§56']

IRC §56. Adjustments in computing alternative minimum taxable income - TaxTV.com
IRC §56. Adjustments in computing alternative minimum taxable income
View related content: IRC §56	Table of ContentsPREVNEXT
This paragraph shall not apply to property placed in service after December 31, 1986, to which the amendments made by section 201 of the Tax Reform Act of 1986 do not apply by reason of section 203, 204, or 2 (d) of such Act.
In determining the amount allowable as a deduction under section 213, subsection (a) of section 213 shall be applied by substituting “10 percent” for “7.5 percent”.
(i) in lieu of the exception under section 163(h)(2)(D), the term “personal interest” shall not include any qualified housing interest (as defined in subsection (e)),
(ii) sections 163(d)(6) and 163(h)(5) (relating to phase-ins) shall not apply,
(iii) interest on any specified private activity bond (and any amount treated as interest on a specified private activity bond under section 57(a)(5)(B)), and any deduction referred to in section 57(a)(5)(A), shall be treated as includible in gross income (or as deductible) for purposes of applying section 163(d),
(iv) in lieu of the exception under section 163(d)(3)(B)(i), the term “investment interest” shall not include any qualified housing interest (as defined in subsection (e)), and
(v) the adjustments of this section and sections 57 and 58 shall apply in determining net investment income under section 163(d).
The standard deduction under section 63(c), the deduction for personal exemptions under section 1 , and the deduction under section 642(b) shall not be allowed. The preceding sentence shall not apply to so much of the standard deduction as is determined under subparagraphs (D) and (E) of section 63(c)(1).
(C) Special rule for personal holding companies
(D) Exception for certain research and experimental expenditures
(c) Adjustments applicable to corporations
(1) Adjustment for adjusted current earnings
(2) Merchant marine capital construction funds
(A) subparagraphs (A), (B), and (C) of section 7 8(c)(1) (and the corresponding provisions of such chapter 535) shall not apply to—
(i) any amount deposited in such fund after December 31, 1986, or
(ii) any earnings (including gains and losses) after December 31, 1986, on amounts in such fund, and
(B) no reduction in basis shall be made under section 7 8(f) (or the corresponding provisions of such chapter 535) with respect to the withdrawal from the fund of any amount to which subparagraph (A) applies.
(3) Special deduction for certain organizations not allowed
(II) 90 percent of alternative minimum taxable income determined without regard to such deduction and the deduction under section 199, plus
(I) the amount of such deduction attributable to an applicable net operating loss with respect to which an election is made under section 172(b)(1)(H), or
(II) alternative minimum taxable income determined without regard to such deduction and the deduction under section 199 reduced by the amount determined under clause (i), and
(3) Net operating loss attributable to federally declared disasters
The term “qualified housing interest” means interest which is qualified residence interest (as defined in section 163(h)(3)) and is paid or accrued during the taxable year on indebtedness which is incurred in acquiring, constructing, or substantially improving any property which—
The term “qualified housing interest” includes interest which is qualified residence interest (as defined in section 163(h)(3)) and is paid or accrued on indebtedness which—
[(f) Repealed. Pub. L. 101–508, title XI, §11801(a)(3), Nov. 5, 1990, 104 Stat. 1388–520]
(g) Adjustments based on adjusted current earnings
(A) the adjusted current earnings of the corporation, over
(B) the alternative minimum taxable income (determined without regard to this subsection and the alternative tax net operating loss deduction).
(2) Allowance of negative adjustments
(i) the amount referred to in subparagraph (B) of paragraph (1), over
(ii) the amount referred to in subparagraph (A) of paragraph (1).
(i) the aggregate increases in alternative minimum taxable income under paragraph (1) for prior taxable years, over
(ii) the aggregate reductions under subparagraph (A) of this paragraph for prior taxable years.
(3) Adjusted current earnings
(A) determined with the adjustments provided in paragraph (4), and
(B) determined without regard to this subsection and the alternative tax net operating loss deduction.
(i) Property placed in service after 1989
(ii) Property to which new ACRS system applies
(I) by taking into account the adjusted basis of such property (as determined for purposes of computing alternative minimum taxable income) as of the close of the last taxable year beginning before January 1, 1990, and
(II) by using the straight-line method over the remainder of the recovery period applicable to such property under the alternative system of section 168(g).
(iii) Property to which original ACRS system applies
(I) by taking into account the adjusted basis of such property (as determined for purposes of computing the regular tax) as of the close of the last taxable year beginning before January 1, 1990, and
(II) by using the straight line method over the remainder of the recovery period which would apply to such property under the alternative system of section 168(g).
(iv) Property placed in service before 1981
(v) Special rule for certain property
(B) Inclusion of items included for purposes of computing earnings and profits
(I) such amount shall be included in income in the same manner as if such amount were includible in gross income for purposes of computing alternative minimum taxable income, and
(II) the amount of such income shall be reduced by any deduction which would have been allowable in computing alternative minimum taxable income if such amount were includible in gross income.
(ii) Inclusion of buildup in life insurance contracts
(I) the income on such contract (as determined under section 7702(g)) for any taxable year shall be treated as includible in gross income for such year, and
(II) there shall be allowed as a deduction that portion of any premium which is attributable to insurance coverage.
(iii) Tax exempt interest on certain housing bonds
(iv) Tax exempt interest on bonds issued in 2009 and 2010
(C) Disallowance of items not deductible in computing earnings and profits
(ii) Special rule for certain dividends
(II) 100-percent dividend
(iii) Treatment of taxes on dividends from 936 corporations
(III) Treatment of taxes imposed on 936 corporation
(IV) Separate application of foreign tax credit limitations
(V) Coordination with limitation on 936 credit
(VI) Application to section 30A corporations
(iv) Special rule for certain dividends received by certain cooperatives
(v) Deduction for domestic production
(vi) Special rule for certain distributions from controlled foreign corporations
(D) Certain other earnings and profits adjustments
(i) Intangible drilling costs
(ii) Certain amortization provisions not to apply
(iii) LIFO inventory adjustments
(iv) Installment sales
(E) Disallowance of loss on exchange of debt pools
(F) Depletion
(ii) Exception for independent oil and gas producers and royalty owners
(G) Treatment of certain ownership changes
(i) there is an ownership change (within the meaning of section 382) in a taxable year beginning after 1989 with respect to any corporation, and
(ii) there is a net unrealized built-in loss (within the meaning of section 382(h)) with respect to such corporation,
(H) Adjusted basis
(I) Treatment of charitable contributions
(B) Treatment of alternative minimum taxable income
(6) Exception for certain corporations
(Added Pub. L. 99– 4, title VII, §701(a), Oct. 22, 1986, 100 Stat. 2322; amended Pub. L. 100–203, title X, §§10202(d), 10243(a), Dec. 22, 1987, 101 Stat. 1330–392, 1330–423; Pub. L. 100–647, title I, §§1002(a)(12), 1007(b)(1)–(14)(A), (15)–(19), title II, §§2001(c)(3)(A), 2004(b)(2), (3), title V, §5041(b)(4), title VI, §§6079(a)(1), 6303(a), Nov. 10, 1988, 102 Stat. 3355, 3428–3432, 3594, 3599, 3674, 3709, 3755; Pub. L. 101–239, title VII, §§7205(b), 7611(a)–(f)(4), 7612(c)(1), (d)(1), 7811(d)(3), 7815(e)(2), (4), Dec. 19, 1989, 103 Stat. 2335, 2371–2374, 2408, 2419; Pub. L. 101–508, title XI, §§11103(b), 11301(b), 11531(a), (b)(1), 11704(a)(1), 11801(a)(3), (c)(2)(A)–(C), (9)(G), 11812(b)(4), Nov. 5, 1990, 104 Stat. 1388–406, 1388–449, 1388–488, 1388–490, 1388– 8, 1388–520, 1388–522, 1388–523, 1388–526, 1388–535; Pub. L. 102–486, title XIX, §1915(a)(2), (b)(2), (c)(1), (2), Oct. 24, 1992, 106 Stat. 3023, 3024; Pub. L. 103–66, title XIII, §§13115(a), 13171(b), 13227(c), Aug. 10, 1993, 107 Stat. 432, 454, 493; Pub. L. 104–188, title I, §§1601(b)(2)(B), (C), 1621(b)(2), 1702(c)(1), (e)(1)(A), (g)(4), (h)(12), 1704(t)(1), (48), Aug. 20, 1996, 110 Stat. 1832, 1833, 1867, 1869, 1870, 1873, 1874, 1887, 1889; Pub. L. 105–34, title III, §312(d)(1), title IV, §§402, 403(a), title XII, §1212(a), Aug. 5, 1997, 111 Stat. 839, 844, 1000; Pub. L. 105–277, div. J, title IV, §4006(c)(2), Oct. 21, 1998, 112 Stat. 2681–912; Pub. L. 106– 9, §4(1), Nov. 15, 2000, 114 Stat. 2432; Pub. L. 106–554, §1(a)(7) [title III, §314(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643; Pub. L. 107–147, title I, §102(c)(1), title IV, §417(5), Mar. 9, 2002, 116 Stat. 26, 56; Pub. L. 108–173, title XII, §1202(b), Dec. 8, 2003, 117 Stat. 2480; Pub. L. 108–311, title IV, §403(b)(4), Oct. 4, 2004, 118 Stat. 1187; Pub. L. 108–357, title I, §§101(b)(4), 102(b), title II, §248(b)(1), title IV, §422(b), title VIII, §835(b)(1), Oct. 22, 2004, 118 Stat. 1423, 1428, 1457, 1 9, 1593; Pub. L. 109–58, title XIII, §1326(d), Aug. 8, 2005, 119 Stat. 1017; Pub. L. 109–135, title IV, §403(a)(14), (r)(2), Dec. 21, 2005, 119 Stat. 2619, 2628; Pub. L. 109–304, §17(e)(1), Oct. 6, 2006, 120 Stat. 1707; Pub. L. 110–172, §11(g)(1), (2), Dec. 29, 2007, 121 Stat. 2489, 2490; Pub. L. 110–289, div. C, title I, §3022(a)(2), July 30, 2008, 122 Stat. 2894; Pub. L. 110–343, div. C, title VII, §§706(b)(3), 708(c), Oct. 3, 2008, 122 Stat. 3922, 3925; Pub. L. 111–5, div. B, title I, §§1008(d), 1503(b), Feb. 17, 2009, 123 Stat. 318, 354; Pub. L. 111–92, §13(b), Nov. 6, 2009, 123 Stat. 2993; Pub. L. 111–148, title IX, §9013(c), Mar. 23, 2010, 124 Stat. 868.)
Pub. L. 111–148, title IX, §9013(c), (d), Mar. 23, 2010, 124 Stat. 868, provided that, applicable to taxable years beginning after Dec. 31, 2012, subsection (b)(1)(B) of this section is amended by striking “by substituting ‘10 percent’ for ‘7.5 percent’ ” and inserting “without regard to subsection (f) of such section”.
Section 201 of the Tax Reform Act of 1986, referred to in subsecs. (a)(1)(C) and (g)(4)(A)(ii), is section 201 of Pub. L. 99– 4, which amended sections 46, 167, 168, 178, 179, 280F, 291, 312, 465, 467, 4, 7 , 1245, 4162, 6111, and 7701 of this title.
Sections 203, 204, and 2 (d) of such Act, referred to in subsec. (a)(1)(C), are sections 203, 204, and 2 (d) of the Tax Reform Act of 1986, Pub. L. 99– 4. Sections 203 and 204 are set out as notes under section 168 of this title. Section 2 (d) is set out as a note under section 46 of this title.
The date of the enactment of the Tax Reform Act of 1986, referred to in subsec. (g)(4)(A)(iii), is the date of enactment of Pub. L. 99– 4, which was approved Oct. 22, 1986.
The FSC Repeal and Extraterritorial Income Exclusion Act of 2000, referred to in subsec. (g)(4)(C)(ii)(I), is Pub. L. 106– 9, Nov. 15, 2000, 114 Stat. 2423. For complete classification of this Act to the Code, see Short Title of 2000 Amendments note set out under section 1 of this title and Tables.
A prior section 56, added Pub. L. 91–172, title III, §301(a), Dec. 30, 1969, 83 Stat. 580; amended Pub. L. 91–614, title V, §501(a), Dec. 31, 1970, 84 Stat. 1846; Pub. L. 92–178, title VI, §601(c)(4), (5), Dec. 10, 1971, 85 Stat. 558; Pub. L. 93–406, title II, §§2001(g)(2)(D), 2002(g)(4), 2005(c)(7), Sept. 2, 1974, 88 Stat. 957, 968, 991; Pub. L. 94–12, title II, §§203(b)(2), (3), 208(d)(2), (3), Mar. 29, 1975, 89 Stat. 30, 35; Pub. L. 94–455, title III, §301(a), (b), (c)(4)(B), Oct. 4, 1976, 90 Stat. 1549, 1552; Pub. L. 95–30, title II, §202(d)(2), May 23, 1977, 91 Stat. 148; Pub. L. 95–600, title I, §141(d), Nov. 6, 1978, 92 Stat. 2794; Pub. L. 95–618, title I, §101(b)(2), Nov. 9, 1978, 92 Stat. 3179; Pub. L. 96–222, title I, §101(a)(7)(L)(iii)(IV), Apr. 1, 1980, 94 Stat. 200; Pub. L. 97–34, title III, §331(c)(2), Aug. 13, 1981, 95 Stat. 293; Pub. L. 97–248, title II, §201(d)(1), formerly §201(c)(1), Sept. 3, 1982, 96 Stat. 419, renumbered §201(d)(1), Pub. L. 97–448, title III, §306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 98–369, div. A, title IV, §474(r)(1), July 18, 1984, 98 Stat. 839; Pub. L. 99– 4, title XI, §1171(b)(3), Oct. 22, 1986, 100 Stat. 2 3, related to a corporate minimum tax, prior to the general revision of this part by Pub. L. 99– 4, §701(a).
2009—Subsec. (b)(1)(E). Pub. L. 111–5, §1008(d), substituted “subparagraphs (D) and (E) of section 63(c)(1)” for “section 63(c)(1)(D)”.
Subsec. (d)(1)(A)(ii)(I). Pub. L. 111–92 amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending during 2001 or 2002 and carryovers of net operating losses to taxable years ending during 2001 and 2002, or”.
2008—Subsec. (b)(1)(E). Pub. L. 110–343, §706(b)(3), inserted at end “The preceding sentence shall not apply to so much of the standard deduction as is determined under section 63(c)(1)(D).”
2007—Subsec. (g)(4)(C)(ii)(I). Pub. L. 110–172, §11(g)(1), substituted “921 (as in effect before its repeal by the FSC Repeal and Extraterritorial Income Exclusion Act of 2000)” for “921”.
Subsec. (g)(4)(C)(iv). Pub. L. 110–172, §11(g)(2), which directed the amendment of section 54(g)(4)(C)(iv) of this title by substituting “an organization to which part I of subchapter T (relating to tax treatment of cooperatives) applies which is engaged in the marketing of agricultural or horticultural products” for “a cooperative described in section 927(a)(4)”, was executed to this section, to reflect the probable intent of Congress.
2005—Subsec. (a)(1)(B). Pub. L. 109–58 inserted “, or in section 168(e)(3)(C)(iv)” before period at end.
Subsec. (b)(1)(A)(ii). Pub. L. 109–135, §403(r)(2), inserted “or clause (ii) of section 164(b)(5)(A)” before period at end.
Subsec. (d)(1)(A)(i)(II), (ii)(II). Pub. L. 109–135, §403(a)(14), substituted “such deduction and the deduction under section 199” for “such deduction”.
2004—Subsec. (d)(1)(A)(i)(I). Pub. L. 108–311, §403(b)(4)(A), struck out “attributable to carryovers” after “other than the deduction”.
Subsec. (d)(1)(A)(ii)(I). Pub. L. 108–311, §403(b)(4)(B), substituted “from taxable years” for “for taxable years” and “carryovers” for “carryforwards”.
Subsec. (g)(4)(B)(i). Pub. L. 108–357, §248(b)(1), inserted “or 1357” after “section 139A” in concluding provisions.
Pub. L. 108–357, §101(b)(4), struck out “114 or” before “139A” in concluding provisions.
Subsec. (g)(6). Pub. L. 108–357, §835(b)(1), substituted “or REMIC” for “REMIC, or FASIT”.
2003—Subsec. (g)(4)(B)(i). Pub. L. 108–173 inserted “or 139A” after “section 114” in concluding provisions.
2002—Subsec. (a)(1)(A)(ii). Pub. L. 107–147, §417(5), substituted “such section 1250” for “such 1250” in concluding provisions.
Subsec. (d)(1)(A). Pub. L. 107–147, §102(c)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the amount of such deduction shall not exceed 90 percent of alternate minimum taxable income determined without regard to such deduction, and”.
2000—Subsec. (a)(1)(A)(ii). Pub. L. 106–554 inserted “(and the straight line method shall be used for such 1250 property)” before “or to any other property” in concluding provisions.
Subsec. (g)(4)(B)(i). Pub. L. 106– 9 inserted “or under section 114” before the period at end of first sentence in concluding provisions.
1998—Subsec. (a)(3). Pub. L. 105–277 substituted “section 460(b)(1)” for “section 460(b)(2)” and “section 460(b)(3)” for “section 460(b)(4)”.
1997—Subsec. (a)(1)(A)(i). Pub. L. 105–34, §402(a), inserted at end “In the case of property placed in service after December 31, 1998, the preceding sentence shall not apply but clause (ii) shall continue to apply.”
Subsec. (a)(5). Pub. L. 105–34, §402(b), inserted at end “In the case of such a facility placed in service after December 31, 1998, such deduction shall be determined under section 168 using the straight line method.”
“(6) Installment sales of certain property.—In the case of any disposition after March 1, 1986, of any property described in section 1221(1), income from such disposition shall be determined without regard to the installment method under section 453. This paragraph shall not apply to any disposition with respect to which an election is in effect under section 453(l)(2)(B).”
Subsec. (e)(1)(A), (3)(B)(i). Pub. L. 105–34, §312(d)(1), substituted “section 121” for “section 1034”.
Subsec. (g)(4)(B)(i). Pub. L. 105–34, §1212(a), inserted at end of concluding provisions “In the case of any insurance company taxable under section 831(b), this clause shall not apply to any amount not described in section 834(b).”
1996—Subsec. (b)(3). Pub. L. 104–188, §1702(h)(12), provided that the amendment made by section 11801(c)(9)(G)(ii) of Pub. L. 101–508 shall be applied as if it struck “Section 422A(c)(2)” and inserted “Section 422(c)(2)”. See 1990 Amendment note below.
Subsec. (d)(1)(B)(ii). Pub. L. 101–508, §1702(e)(1)(A), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “in the case of taxable years beginning after December 31, 1986, section 172(b)(2) shall be applied by substituting ‘90 percent of alternative minimum taxable income determined without regard to the alternative tax net operating loss deduction’ for ‘taxable income’ each place it appears.”
Subsec. (g)(1), (2)(A). Pub. L. 104–188, §1704(t)(48), provided that section 11801(c)(2)(B) of Pub. L. 101–508 shall be applied as if “section 56(g)” appeared instead of “section 59(g)”. See 1990 Amendment note below.
Subsec. (g)(4)(C)(ii)(I). Pub. L. 104–188, §1601(b)(2)(B), inserted “30A,” before “936” and substituted “, (i), and (j)” for “and (i)”.
Subsec. (g)(4)(C)(ii)(II). Pub. L. 104–188, §1704(t)(1), substituted “of subclause” for “of the subclause”.
Subsec. (g)(4)(D)(iii). Pub. L. 104–188, §1702(g)(4), inserted “, but only with respect to taxable years beginning after December 31, 1989” before period at end.
Subsec. (g)(6). Pub. L. 104–188, §1621(b)(2), substituted “REMIC, or FASIT” for “or REMIC”.
1993—Subsec. (g)(4)(A)(i). Pub. L. 103–66, §13115(a), inserted at end “The preceding sentence shall not apply to any property placed in service after December 31, 1993, and the depreciation deduction with respect to such property shall be determined under the rules of subsection (a)(1)(A).”
Subsec. (g)(4)(C)(ii)(I). Pub. L. 103–66, §13227(c)(1), substituted “sections 936 (including subsections (a)(4) and (i) thereof) and 921” for “sections 936 and 921”.
1992—Subsec. (d)(1)(A). Pub. L. 102–486, §1915(c)(2), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the amount of such deduction shall not exceed the excess (if any) of—
Subsec. (g)(4)(D)(i). Pub. L. 102–486, §1915(b)(2), inserted at end “In the case of a taxpayer other than an integrated oil company (as defined in section 291(b)(4)), in the case of any oil or gas well, this clause shall not apply in the case of amounts paid or incurred in taxable years beginning after December 31, 1992.”
Subsec. (g)(4)(F). Pub. L. 102–486, §1915(a)(2), amended subpar. (F) generally. Prior to amendment, subpar. (F) read as follows: “The allowance for depletion with respect to any property placed in service in a taxable year beginning after 1989 shall be cost depletion determined under section 611.”
1990—Subsec. (a)(1)(D). Pub. L. 101–508, §11812(b)(4), substituted “section 168(i)(10)” for “section 167(l)(3)(A)”.
Subsec. (b)(3). Pub. L. 101–508, §11801(c)(9)(G)(i), substituted “section 422” for “section 422A”.
Pub. L. 101–508, §11801(c)(9)(G)(ii), which directed the substitution of “section 422(c)(2)” for “section 422A(c)(2)”, was executed by substituting “Section 422(c)(2)” for “Section 422A(c)(2)”. See 1996 Amendment note above.
Subsec. (c)(1). Pub. L. 101–508, §11801(c)(2)(A), substituted heading for one which read: “Adjustment for book income or adjusted current earnings” and amended text generally. Prior to amendment, text read as follows:
Subsec. (d)(1)(A). Pub. L. 101–508, §11531(b)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the amount of such deduction shall not exceed 90 percent of alternative minimum taxable income determined without regard to such deduction, and”.
Subsec. (g)(1), (2)(A). Pub. L. 101–508, §11801(c)(2)(B), which directed that pars. (1) and (2) “of section 59(g) are each amended by striking ‘beginning after 1989’ ”, was executed to pars. (1) and (2)(A) of subsec. (g) of this section after “any taxable year”. See 1996 Amendment note above.
Subsec. (g)(4)(C)(iii). Pub. L. 101–508, §11801(c)(2)(C), substituted heading for one which read: “Special rule for dividends from section 936 companies” and amended text generally. Prior to amendment, text read as follows: “In the case of any dividend received from a corporation eligible for the credit provided by section 936, rules similar to the rules of subparagraph (F) of subsection (f)(1) shall apply, except that ‘75 percent’ shall be substituted for ‘50 percent’ in clause (i) thereof.”
Subsec. (g)(4)(D)(ii). Pub. L. 101–508, §11704(a)(1), substituted “years” for “year”.
1989—Subsec. (a)(3). Pub. L. 101–239, §7815(e)(2)(B), substituted “The first sentence of this paragraph shall not” for “The preceding sentence shall not”.
Pub. L. 101–239, §7612(c)(1), struck out “with respect to which the requirements of clauses (i) and (ii) of section 460(e)(1)(B) are met” after “section 460(e)(6))”.
Subsec. (b)(3). Pub. L. 101–239, §7811(d)(3), inserted after first sentence “Section 422A(c)(2) shall apply in any case where the disposition and the inclusion for purposes of this part are within the same taxable year and such section shall not apply in any other case.” and substituted “this paragraph” for “the preceding sentence” in last sentence.
Subsec. (g)(4)(A)(i). Pub. L. 101–239, §7611(a)(1)(A), amended cl. (i) generally. Prior to amendment cl. (i) read as follows: “The depreciation deduction with respect to any property placed in service in a taxable year beginning after 1989 shall be determined under whichever of the following methods yields deductions with a smaller present value:
“(I) The alternative system of section 168(g), or
Subsec. (g)(4)(A)(iii). Pub. L. 101–239, §7611(a)(2), inserted “and which is placed in service in a taxable year beginning before 1990” after “thereof) applies”.
Subsec. (g)(4)(B)(i). Pub. L. 101–239, §7611(f)(2), inserted at end “The preceding sentence shall not apply in the case of any amount excluded from gross income under section 108 (or the corresponding provisions of prior law).”
Subsec. (g)(4)(B)(iii). Pub. L. 101–239, §7611(f)(3), repealed cl. (iii) which read as follows: “In the case of any annuity contract, the income on such contract (as determined under section 72(u)(2)) shall be treated as includible in gross income for such year. The preceding sentence shall not apply to any annuity contract which is held under a plan described in section 403(a) or which is described in section 72(u)(3)(C).”
Subsec. (g)(4)(C)(ii). Pub. L. 101–239, §7611(d), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Clause (i) shall not apply to any deduction allowable under section 243 or 245 for a 100-percent dividend—
“(I) if the corporation receiving such dividend and the corporation paying such dividend could not be members of the same affiliated group under section 1504 by reason of section 1504(b),
Subsec. (g)(4)(G). Pub. L. 101–239, §7611(c), amended subpar. (G) generally. Prior to amendment, subpar. (G) read as follows: “The allowances for depletion with respect to any property placed in service in a taxable year beginning after 1989, shall be determined under whichever of the following methods yields deductions with a smaller present value:
Subsec. (g)(4)(H)(i). Pub. L. 101–239, §7611(f)(1), substituted “in a taxable year beginning after 1989” for “after the date of the enactment of the Tax Reform Act of 1986”.
Subsec. (g)(5)(A). Pub. L. 101–239, §7611(f)(4), redesignated subpar. (B) as (A) and struck out former subpar. (A) which defined “book purposes”.
Subsec. (g)(5)(C). Pub. L. 101–239, §7611(f)(4), struck out subpar. (C) which read as follows: “Present value.—Present value shall be determined as of the time the property is placed in service (or, if later, as of the beginning of the first taxable year beginning after 1989) and under regulations prescribed by the Secretary.”
1988—Subsec. (a)(1)(A)(i). Pub. L. 100–647, §1007(b)(15), substituted “personal” for “real” in heading.
Subsec. (a)(1)(C)(i). Pub. L. 100–647, §1002(a)(12), inserted “by reason of section 203, 204, or 2 (d) of such Act” after “do not apply”.
Subsec. (a)(3). Pub. L. 100–647, §5041(b)(4), as amended by Pub. L. 101–239, §7815(e)(2)(A), inserted at end “The preceding sentence shall not apply to any home construction contract (as defined in section 460(e)(6)) with respect to which the requirements of clauses (i) and (ii) of section 460(e)(1)(B) are met.”
Pub. L. 100–647, §1007(b)(1), inserted at end “For purposes of the preceding sentence, in the case of a contract described in section 460(e)(1), the percentage of the contract completed shall be determined under section 460(b)(2) by using the simplified procedures for allocation of costs prescribed under section 460(b)(4).”
Subsec. (b)(1). Pub. L. 100–647, §1007(b)(16), struck out “itemized” after “Limitation on” in heading.
Subsec. (b)(1)(C)(ii). Pub. L. 100–647, §2004(b)(2), substituted “163(h)(5)” for “163(h)(6)”.
Subsec. (b)(1)(C)(iii). Pub. L. 100–647, §1007(b)(4), substituted “specified private activity bond” for “specified activity bond” before “under”, and “57(a)(5)(B)” for “56(a)(5)(B)”.
Subsec. (b)(1)(E). Pub. L. 100–647, §1007(b)(2), substituted “and deduction for personal exemptions not allowed” for “not allowed” in heading and amended text generally. Prior to amendment, text read as follows: “The standard deduction provided in section 63(c) shall not be allowed.”
Subsec. (c)(1). Pub. L. 100–647, §1007(b)(13)(A), substituted “adjusted current earnings” for “adjusted earnings and profits” in heading.
Subsec. (c)(1)(B). Pub. L. 100–647, §1007(b)(13)(B), substituted “Adjusted current earnings” for “Adjusted earnings and profits” in heading.
Subsec. (d)(2)(A). Pub. L. 100–647, §1007(b)(5), struck out “(other than subsection (a)(6) thereof)” after “for such year” in cl. (ii) and inserted sentence at end providing that an item of tax preference shall be taken into account under clause (ii).
Subsec. (e)(1). Pub. L. 100–647, §2004(b)(3)(A), substituted “improving” for “rehabilitating” in introductory text.
Pub. L. 100–647, §1007(b)(6)(A)(i), inserted “qualified residence interest (as defined in section 163(h)(3)) and is” after “interest which is” in introductory text.
Subsec. (e)(1)(A). Pub. L. 100–647, §2004(b)(3)(B), struck out “or is paid” after “accrues”.
Subsec. (e)(1)(B). Pub. L. 100–647, §1007(b)(6)(A)(ii), substituted “section 163(h)(4)” for “section 163(h)(3)”.
Subsec. (e)(3). Pub. L. 100–647, §1007(b)(6)(B), substituted “interest which is qualified residence interest (as defined in section 163(h)(3)) and is paid or accrued” for “interest paid or accrued”.
Subsec. (f)(2)(B). Pub. L. 100–647, §2001(c)(3)(A), inserted at end “No adjustment shall be made under this subparagraph for the tax imposed by section 59A.”
Pub. L. 100–647, §1007(b)(7), inserted “(otherwise eligible for the credit provided by section 901 without regard to section 901(j))” after “any such taxes”.
Subsec. (f)(2)(F). Pub. L. 100–647, §1007(b)(11)(A), substituted “Treatment of taxes on dividends from 936 corporations” for “Treatment of dividends from 936 corporations” in heading and amended text generally, substituting cls. (i) to (iii) for former cls. (i) and (ii).
Subsec. (f)(3)(A)(iii). Pub. L. 100–647, §1007(b)(8), inserted “for a substantial nontax purpose” after “an income statement”.
Subsec. (f)(3)(B). Pub. L. 100–647, §1007(b)(9), substituted “this subsection” for “paragraph (3)(A)” in penultimate sentence.
Subsec. (f)(3)(C). Pub. L. 100–647, §1007(b)(10), inserted at end “If the taxpayer has 2 or more statements described in the clause (or subclause) with the lowest number designation, the applicable financial statement shall be the one of such statements specified in regulations.”
Subsec. (g)(4)(B)(iii). Pub. L. 100–647, §6079(a)(1), amended last sentence generally, inserting “which is” after “any annuity contract” and “or which is described in section 72(u)(3)(C)” after “in section 403(a)”.
Pub. L. 100–647, §1007(b)(12), inserted at end “The preceding sentence shall not apply to any annuity contract held under a plan described in section 403(a).”
Subsec. (g)(4)(C)(iii). Pub. L. 100–647, §1007(b)(11)(B), substituted “clause (i)” for “clause (ii)(I)”.
1987—Subsec. (a)(6). Pub. L. 100–203, §10202(d), amended par. (6) generally. Prior to amendment, par. (6) read as follows: “In the case of any—
“(A) disposition after March 1, 1986, of property described in section 1221(1), or
“(B) other disposition if an obligation arising from such disposition would be an applicable installment obligation (as defined in section 453C(e)) to which section 453C applies,
income from such disposition shall be determined without regard to the installment method under section 453 or 453A and all payments to be received for the disposition shall be deemed received in the taxable year of the disposition. This paragraph shall not apply to any disposition with respect to which an election is in effect under section 453C(e)(4).”
Pub. L. 111–148, title IX, §9013(d), Mar. 23, 2010, 124 Stat. 868, provided that: “The amendments made by this section [amending this section and section 213 of this title] shall apply to taxable years beginning after December 31, 2012.”
Pub. L. 111–92, §13(e), (f), Nov. 6, 2009, 123 Stat. 2994, 2995, provided that:
Pub. L. 111–5, div. B, title I, §1008(e), Feb. 17, 2009, 123 Stat. 318, provided that: “The amendments made by this section [amending this section and sections 63 and 164 of this title] shall apply to purchases on or after the date of the enactment of this Act [Feb. 17, 2009] in taxable years ending after such date.”
Pub. L. 111–5, div. B, title I, §1503(c), Feb. 17, 2009, 123 Stat. 355, provided that: “The amendments made by this section [amending this section and section 57 of this title] shall apply to obligations issued after December 31, 2008.”
Pub. L. 110–343, div. C, title VII, §708(e), Oct. 3, 2008, 122 Stat. 3925, provided that: “The amendments made by this section [amending this section and section 172 of this title] shall apply to losses arising in taxable years beginning after December 31, 2007, in connection with disasters declared after such date.”
Pub. L. 110–289, div. C, title I, §3022(d)(1), July 30, 2008, 122 Stat. 2894, provided that: “The amendments made by subsection (a) [amending this section and section 57 of this title] shall apply to bonds issued after the date of the enactment of this Act [July 30, 2008].”
Pub. L. 108–357, title I, §101(c), Oct. 22, 2004, 118 Stat. 1423, provided that: “The amendments made by this section [amending this section and sections 275, 864, 903, and 999 of this title and repealing sections 114 and 941 to 943 of this title] shall apply to transactions after December 31, 2004.”
Pub. L. 108–357, title II, §248(c), Oct. 22, 2004, 118 Stat. 1457, provided that: “The amendments made by this section [enacting subchapter R of this chapter and amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Oct. 22, 2004].”
Pub. L. 108–357, title IV, §422(d), Oct. 22, 2004, 118 Stat. 1 9, provided that: “The amendments made by this section [enacting section 965 of this title and amending this section] shall apply to taxable years ending on or after the date of the enactment of this Act [Oct. 22, 2004].”
Pub. L. 108–311, title IV, §403(f), Oct. 4, 2004, 118 Stat. 1188, provided that: “The amendments made by this section [amending this section, sections 137, 168, 172, and 1400L of this title, section 1306 of Title 29, Labor, and provisions set out as a note under this section] shall take effect as if included in the provisions of the Job Creation and Worker Assistance Act of 2002 [Pub. L. 107–147] to which they relate.”
Pub. L. 108–173, title XII, §1202(d), Dec. 8, 2003, 117 Stat. 2480, provided that: “The amendments made by this section [enacting section 139A of this title and amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Dec. 8, 2003].”
Pub. L. 107–147, title I, §102(c)(2), Mar. 9, 2002, 116 Stat. 26, as amended Pub. L. 108–311, title IV, §403(b)(3), Oct. 4, 2004, 118 Stat. 1187, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years ending after December 31, 1990.”
Pub. L. 106–554, §1(a)(7) [title III, §314(g)], Dec. 21, 2000, 114 Stat. 2763, 2763A–643, provided that: “The amendments made by this section [amending this section and sections 403, 414, 415, 3405, 6211 and 7436 of this title and provisions set out as a note under section 1 of this title] shall take effect as if included in the provisions of the Taxpayer Relief [Act] of 1997 [Pub. L. 105–34] to which they relate.”
Pub. L. 106– 9, §5, Nov. 15, 2000, 114 Stat. 2433, as amended by Pub. L. 109–222, title V, §3(a), May 17, 2006, 120 Stat. 366, provided that:
“(i) earnings and profits of such corporation accumulated in taxable years ending before October 1, 2000, shall not be included in the gross income of the persons holding stock in such corporation by reason of section 943(e)(4)(B)(i); and
“(ii) rules similar to the rules of clauses (ii), (iii), and (iv) of section 953(d)(4)(B) shall apply with respect to such earnings and profits.
“(ii) such corporation is eligible to make the election under section 943(e) by reason of being described in paragraph (2)(B) of such section; and
“(C) Other corporations.—This paragraph shall apply to any controlled foreign corporation (as defined in section 957), and such corporation shall (notwithstanding any provision of section 943(e)) be treated as an applicable foreign corporation for purposes of section 943(e), if—
“(ii) as of such date, such corporation is wholly owned (directly or indirectly) by a domestic corporation (determined without regard to any election under section 943(e));
“(iii) for each of the 3 taxable years preceding the first taxable year to which the election under section 943(e) by such controlled foreign corporation applies—
“(I) all of the gross income of such corporation is subpart F income (as defined in section 952), including by reason of section 954(b)(3)(B); and
“(iv) such corporation has never made an election under section 922(a)(2) (as in effect before the date of the enactment of this paragraph [Nov. 15, 2000]) to be treated as a FSC; and
“(v) such corporation makes the election under section 943(e) not later than for its first taxable year beginning after December 31, 2001.
“(4) Related person.—For purposes of this subsection, the term ‘related person’ has the meaning given to such term by section 943(b)(3).
[Pub. L. 109–222, title V, §3(c), May 17, 2006, 120 Stat. 366, provided that: “The amendments made by this section [amending section 5 of Pub. L. 106– 9, set out above, and provisions set out as a note under section 114 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [May 17, 2006].”]
Section 403(b) of Pub. L. 105–34 provided that:
“(2) Special rule for 1987.—In the case of taxable years beginning in 1987, the last sentence of section 56(a)(6) of the Internal Revenue Code of 1986 (as in effect for such taxable years) shall be applied by inserting ‘or in the case of a taxpayer using the cash receipts and disbursements method of accounting, any disposition described in section 453C(e)(1)(B)(ii)’ after ‘section 453C(e)(4)’.”
Section 1212(b) of Pub. L. 105–34 provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1997.”
Amendment by section 1601(b)(2)(B), (C) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1995, except as otherwise provided, see section 1601(c) of Pub. L. 104–188, set out as an Effective Date note under section 30A of this title.
Section 13115(b) of Pub. L. 103–66 provided that:
Section 13227(f) of Pub. L. 103–66 provided that: “The amendments made by this section [amending this section and sections 904, 936, and 7652 of this title] shall apply to taxable years beginning after December 31, 1993; except that the amendment made by subsection (e) [amending section 7652 of this title] shall take effect on October 1, 1993.”
Section 1915(d) of Pub. L. 102–486 provided that: “The amendments made by this section [amending this section and sections 57, 59, and 59A of this title] shall apply to taxable years beginning after December 31, 1992.”
Section 11301(d)(2) of Pub. L. 101–508 provided that:
“(B) Special rules for year which includes september 30, 1990.—In the case of any taxable year which includes September 30, 1990, the amount of acquisition expenses which is required to be capitalized under section 56(g)(4)(F) of the Internal Revenue Code of 1986 (as in effect before the amendment made by subsection (b)) by a company which is not a small insurance company shall be the amount which bears the same ratio to the amount which (but for this subparagraph) would be so required to be capitalized as the number of days in such taxable year before September 30, 1990, bears to the total number of days in such taxable year. A similar reduction shall be made in the amount amortized for such taxable year under such section 56(g)(4)(F).”
Section 11531(c) of Pub. L. 101–508 provided that: “The amendments made by this section [amending this section and sections 59 and 59A of this title] shall apply to taxable years beginning after December 31, 1990.”
Section 11704(b) of Pub. L. 101–508 provided that: “The amendments made by this section [amending this section, sections 172, 3 , 413, 461, 469, 597, 857, 860D, 860G, 892, 927, 936, 1017, 1245, 1441, 2056A, 2642, 3231, 4091, 4093, 5061, 6013, 6038A, 6039D, 6045, 6323, 6332, 6655, 7 9, 7522, 7608, and 7701 of this title, and provisions set out as a note under section 231n of Title 45, Railroads] shall take effect on the date of the enactment of this Act.”
Amendment by section 11812(b)(4) of Pub. L. 101–508 applicable to property placed in service after Nov. 5, 1990, but not applicable to any property to which section 168 of this title does not apply by reason of subsec. (f)(5) of section 168, and not applicable to rehabilitation expenditures described in section 252(f)(5) of Pub. L. 99– 4, see section 11812(c) of Pub. L. 101–508, set out as a note under section 42 of this title.
Section 7205(c) of Pub. L. 101–239 provided that:
Section 7611(g) of Pub. L. 101–239 provided that:
Section 7612(c)(2) of Pub. L. 101–239 provided that: “The amendment made by paragraph (1) [amending this section] shall apply to contracts entered into in taxable years beginning after September 30, 1990.”
Section 7612(d)(2) of Pub. L. 101–239 provided that: “The amendment made by paragraph (1) [amending this section] shall apply to taxable years beginning after December 31, 1990.”
Section 1007(b)(14)(C) of Pub. L. 100–647 provided that: “The amendments made by this paragraph [amending this section and section 57 of this title] shall apply with respect to options exercised after December 31, 1987.”
Amendment by sections 1002(a)(12) and 1007(b)(1)–(13), (15)–(19) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99– 4, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Section 2001(e) of Pub. L. 100–647 provided that: “Except as otherwise provided in this section, the amendments made by this section [amending this section, sections 59A, 882, 4041, 4081, 4091, 4662, 4672, 6416, 6421, and 6427 of this title, and provisions set out as a note under section 4081 of this title] shall take effect as if included in the provision of the Superfund Revenue Act of 1986 [Pub. L. 99–499, title V] to which it relates.”
Section 2004(u) of Pub. L. 100–647 provided that: “Except as otherwise provided in this section, any amendment made by this section [amending this section, sections 163, 244, 280H, 301, 304, 355, 384, 444, 453, 453A, 469, 4, 811, 812, 816, 842, 904, 1201, 1363, 1503, 1561, 4093, 13, 23, 5276, 5881, 6427, 6655, 7 9, and 7704 of this title, and provisions set out as notes under sections 21, 219, 243, 301, 304, 444, 453, 1503, and 7704 of this title] shall take effect as if included in the provisions of the Revenue Act of 1987 [Pub. L. 100–203, title X] to which such amendment relates.”
Section 6079(a)(2) of Pub. L. 100–647 provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as if included in the amendments made by section 701 of the Reform Act [Pub. L. 99– 4].”
Section 6303(b) of Pub. L. 100–647 provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1986.”
Section 10243(b) of Pub. L. 100–203 provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1987.”
Pub. L. 110–343, div. C, title VII, §712, Oct. 3, 2008, 122 Stat. 3929, provided that: “The amendments made by this subtitle [subtitle B (§§706–712) of title VII of div. C of Pub. L. 110–343, enacting section 198A of this title and amending this section and sections 63, 139, 143, 165, 168, 172, 179, 1033, and 7508A of this title], other than the amendments made by sections 706(a)(2) [amending sections 139, 165, 172, 1033, and 7508A of this title], 710 [amending section 168 of this title], and 711 [amending section 179 of this title], shall not apply to any disaster described in section 702(c)(1)(A) [section 702(c)(1) has no subpar. (A)], or to any expenditure or loss resulting from such disaster.”
Section 1702(e)(1)(B) of Pub. L. 104–188 provided that: “For purposes of applying sections 56(g)(1) and 56(g)(3) of the Internal Revenue Code of 1986 with respect to taxable years beginning in 1991 and 1992, the reference in such sections to the alternative tax net operating loss deduction shall be treated as including a reference to the deduction under section 56(h) of such Code as in effect before the amendments made by section 1915 of the Energy Policy Act of 1992 [Pub. L. 102–486].”
Section 7821(a)(5) of Pub. L. 101–239 provided that: “In the case of taxable years beginning in 1987, the reference to section 453 contained in section 56(a)(6) of the Internal Revenue Code of 1986 shall be treated as including a reference to section 453A.”
Section 702 of Pub. L. 99– 4 required Secretary of the Treasury or his delegate to conduct a study of operation and effect of provisions of sections 56(f) and 56(g) of the Internal Revenue Code of 1986, prior to repeal by Pub. L. 101–508, title XI, §11832(4), Nov. 5, 1990, 104 Stat. 1388–559.
View related content: IRC §56