Source: http://taxtv.com/code/00253-USCODE-2011-title26-subtitleA-chap1-subchapB-partVIII-sec246A/
Timestamp: 2017-06-27 17:20:37
Document Index: 502776662

Matched Legal Cases: ['§246', '§246', '§246', '§611', '§1804', '§10221', '§1012', '§408', '§1804', '§611', '§246']

IRC §246A. Dividends received deduction reduced where portfolio stock is debt financed - TaxTV.com
IRC §246A. Dividends received deduction reduced where portfolio stock is debt financed
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In 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, 244, or 245(a) a percentage equal to the product of—
(1) qualifying dividends (as defined in section 243(b) without regard to section 243(d)(4)), and
The term “debt financed portfolio stock” means any portfolio stock if at some time during the base period there is portfolio indebtedness with respect to such stock.
The term “portfolio stock” means any stock of a corporation unless—
(i) the taxpayer owns stock of such corporation which would meet the requirements of subparagraph (A) if “20 percent” were substituted for “50 percent” each place it appears in such subparagraph, and
Except as provided in paragraph (2), the term “average indebtedness percentage” means the percentage obtained by dividing—
The term “portfolio indebtedness” means any indebtedness directly attributable to investment in the portfolio stock.
The term “base period” means, with respect to any dividend, the shorter of—
(Added Pub. L. 98–369, div. A, title I, §(a), July 18, 1984, 98 Stat. 562; amended Pub. L. 99– 4, 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. 3 3; Pub. L. 108–311, title IV, §408(a)(9), Oct. 4, 2004, 118 Stat. 1191.)
2004—Subsec. (b)(1). Pub. L. 108–311 substituted “section 243(d)(4)” for “section 243(c)(4)”.
1988—Subsec. (a). Pub. L. 100–647 struck out at end “The preceding sentence shall be applied before any determination of a ratio under paragraph (1) or (2) of section 245(a).”
1987—Subsec. (a)(1). Pub. L. 100–203 substituted “70 percent (80 percent in the case of any dividend from a 20-percent owned corporation as defined in section 243(c)(2))” for “80 percent”.
1986—Subsec. (a). Pub. L. 99– 4, §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– 4, §611(a)(4), substituted “80 percent” for “85 percent”.
Amendment by section 611(a)(4) of Pub. L. 99– 4 applicable to dividends received or accrued after Dec. 31, 1986, in taxable years ending after such date, see section 611(b) of Pub. L. 99– 4, set out as a note under section 246 of this title.
Amendment by section 1804(a) of Pub. L. 99– 4 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99– 4, set out as a note under section 48 of this title.
Section (c) of Pub. L. 98–369 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.”
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