Source: http://www.law.cornell.edu/uscode/text/11/346?quicktabs_8=2
Timestamp: 2013-05-20 00:10:26
Document Index: 335491020

Matched Legal Cases: ['§ 346', '§ 346', '§ 346', '§ 438', '§ 257', '§ 501', '§ 719', '§ 504', '§ 501', '§ 257', '§ 257', '§ 257', '§ 283']

11 USC § 346 - Special provisions related to the treatment of State and local taxes | Title 11 - Bankruptcy | U.S. Code | LII / Legal Information Institute
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11 USC § 346 - Special provisions related to the treatment of State and local taxes
The estate may carry back any loss or tax attribute to a taxable period of the debtor that ended before the date of the order for relief under this title to the extent that—
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2565; Pub. L. 98–353, title III, § 438,July 10, 1984, 98 Stat. 370; Pub. L. 99–554, title II, §§ 257(g), 283(c),Oct. 27, 1986, 100 Stat. 3114, 3116; Pub. L. 103–394, title V, § 501(d)(4),Oct. 22, 1994, 108 Stat. 4143; Pub. L. 109–8, title VII, § 719(a)(1),Apr. 20, 2005, 119 Stat. 131.)
Subsection (b)(1) provides that in a case concerning an individual under chapter 7 or 11 of title 11, income of the estate is taxable only to the estate and not to the debtor. The second sentence of the paragraph provides that if such individual is a partner, the tax attributes of the partnership are distributable to the partner’s estate rather than to the partner, except to the extent that section 728 of title 11 provides otherwise.
Subsection (b)(2) states a general rule that the estate of an individual is to be taxed as an estate. The paragraph is made subject to the remainder of section 346 andsection 728 of title 11.
Subsection (c)(1) states a general rule that the estate of a partnership or a corporated debtor is not a separate entity for tax purposes. The income of the debtor is to be taxed as if the case were not commenced, except as provided in the remainder of section 346 andsection 728.
Subsection (g)(2) provides that any of the three kinds of transferees specified in paragraph (1) take the property with the same character, holding period, and basis in the hands of the transferor at the time of such transfer. The transferor’s basis may be adjusted under section 346
(j)(5) even if the discharge of indebtedness occurs after the transfer of property. Of course, no adjustment will occur if the transfer is from the debtor to the estate or if the transfer is from an entity that is not discharged.
Subsection (h) provides that the creation of the estate of an individual under chapter 7 or 11 of title 11 as a separate taxable entity does not affect the number of taxable years for purposes of computing loss carryovers or carrybacks. The section applies with respect to carryovers or carrybacks of the debtor transferred into the estate under section 346
(i)(1) of title 11 or back to the debtor under section 346
(i)(2) of title 11.
2005—Pub. L. 109–8amended section catchline and text generally. Prior to amendment, text consisted of subsecs. (a) to (j) relating to special tax provisions.
1994—Subsec. (a). Pub. L. 103–394, § 504(d)(4)(A), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.)”.
Subsec. (g)(1)(C). Pub. L. 103–394, § 501(d)(4)(B), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954 (26 U.S.C. 371)”.
1986—Subsec. (b)(1). Pub. L. 99–554, § 257(g)(1), inserted reference to chapter 12.
Subsec. (g)(1)(C). Pub. L. 99–554, § 257(g)(2), inserted reference to chapter 12.
Subsec. (i)(1). Pub. L. 99–554, § 257(g)(3), inserted reference to chapter 12.
Subsec. (j)(7). Pub. L. 99–554, § 283(c), substituted “owed” for “owned”.
1984—Subsec. (c)(2). Pub. L. 98–353substituted “corporation” for “operation”.