Source: https://uscode.house.gov/view.xhtml?req=(title:26%20section:631%20edition:prelim)
Timestamp: 2020-06-04 04:57:24
Document Index: 290952545

Matched Legal Cases: ['§ 631', '§227', '§1402', '§1906', '§178', '§1001', '§311', '§315', '§1001', '§227', '§315', '§178', '§2', '§1402', '§102', '§311']

[USC02] 26 USC 631: Gain or loss in the case of timber, coal, or domestic iron ore
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26 USC 631: Gain or loss in the case of timber, coal, or domestic iron ore Text contains those laws in effect on June 3, 2020
From Title 26-INTERNAL REVENUE CODESubtitle A-Income TaxesCHAPTER 1-NORMAL TAXES AND SURTAXESSubchapter I-Natural ResourcesPART III-SALES AND EXCHANGES
In the case of the disposal of coal (including lignite), or iron ore mined in the United States, held for more than 1 year before such disposal, by the owner thereof under any form of contract by virtue of which such owner retains an economic interest in such coal or iron ore, the difference between the amount realized from the disposal of such coal or iron ore and the adjusted depletion basis thereof plus the deductions disallowed for the taxable year under section 272 shall be considered as though it were a gain or loss, as the case may be, on the sale of such coal or iron ore. If for the taxable year of such gain or loss the maximum rate of tax imposed by this chapter on any net capital gain is less than such maximum rate for ordinary income, such owner shall not be entitled to the allowance for percentage depletion provided in section 613 with respect to such coal or iron ore. This subsection shall not apply to income realized by any owner as a co-adventurer, partner, or principal in the mining of such coal or iron ore, and the word "owner" means any person who owns an economic interest in coal or iron ore in place, including a sublessor. The date of disposal of such coal or iron ore shall be deemed to be the date such coal or iron ore is mined. In determining the gross income, the adjusted gross income, or the taxable income of the lessee, the deductions allowable with respect to rents and royalties shall be determined without regard to the provisions of this subsection. This subsection shall have no application, for purposes of applying subchapter G, relating to corporations used to avoid income tax on shareholders (including the determinations of the amount of the deductions under section 535(b)(6) or section 545(b)(5)). This subsection shall not apply to any disposal of iron ore or coal-
(Aug. 16, 1954, ch. 736, 68A Stat. 213 ; Pub. L. 88–272, title II, §227(a)(1), (b)(1), Feb. 26, 1964, 78 Stat. 97 , 98; Pub. L. 94–455, title XIV, §1402(b)(1)(I), (2), (3), title XIX, §1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1732 , 1733, 1834; Pub. L. 98–369, div. A, title I, §178(a), title X, §1001(c), (e), July 18, 1984, 98 Stat. 712 , 1012; Pub. L. 99–514, title III, §311(b)(3), Oct. 22, 1986, 100 Stat. 2219 ; Pub. L. 108–357, title III, §315(a), (b), Oct. 22, 2004, 118 Stat. 1469 .)
2004-Subsec. (b). Pub. L. 108–357, in heading, struck out "with a retained economic interest" after "timber", in first sentence, substituted "either retains an economic interest in such timber or makes an outright sale of such timber" for "retains an economic interest in such timber", and, in third sentence, substituted "In the case of disposal of timber with a retained economic interest, the date of disposal" for "The date of disposal".
1986-Subsec. (c). Pub. L. 99–514 substituted "If for the taxable year of such gain or loss the maximum rate of tax imposed by this chapter on any net capital gain is less than such maximum rate for ordinary income, such owner" for "Such owner".
1984-Subsec. (a). Pub. L. 98–369, §1001(c)(1), (e), substituted "on the first day of such year and for a period of more than 6 months before such cutting" for "for a period of more than 1 year", applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.
1964-Pub. L. 88–272, §227(b)(1), inserted reference to domestic iron ore in heading.
Pub. L. 108–357, title III, §315(c), Oct. 22, 2004, 118 Stat. 1469 , provided that: "The amendments made by this section [amending this section] shall apply to sales after December 31, 2004."
Pub. L. 98–369, div. A, title I, §178(b), July 18, 1984, 98 Stat. 712 , as amended by Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 , provided that:
"(1) In general.-Except as provided in paragraph (2), the amendment made by subsection (a) [amending this section] shall apply to dispositions after September 30, 1985.
"(2) Special rule for fixed contracts.-
"(A) In general.-The amendment made by subsection (a) shall not apply to any disposition of an interest in coal by a person to a related person if such coal is subsequently sold before January 1, 1990, by either such person-
"(B) Allocation where more than 1 contract.-If, for any taxable year, there is a disposition described in subparagraph (A) which is not specifically allocable to a qualified fixed contract or to a contract which is not a qualified fixed contract, such disposition shall be treated as first allocable to the qualified fixed contract.
"(C) Qualified fixed contract defined.-The term 'qualified fixed contract' means any contract for the sale of coal which-
"(D) Related person.-For purposes of this paragraph, the term 'related person' means a person who bears a relationship to another person described in the last sentence of section 631(c). "
Pub. L. 94–455, title XIV, §1402(b)(3), Oct. 4, 1976, 90 Stat. 1733 , provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1976.
Pub. L. 108–357, title I, §102(c), Oct. 22, 2004, 118 Stat. 1428 , provided that: "Any election under section 631(a) of the Internal Revenue Code of 1986 made for a taxable year ending on or before the date of the enactment of this Act [Oct. 22, 2004] may be revoked by the taxpayer for any taxable year ending after such date. For purposes of determining whether such taxpayer may make a further election under such section, such election (and any revocation under this section) shall not be taken into account."
Pub. L. 99–514, title III, §311(d)(2), Oct. 22, 1986, 100 Stat. 2220 , provided that: "Any election under section 631(a) of the Internal Revenue Code of 1954 made (whether by a corporation or a person other than a corporation) for a taxable year beginning before January 1, 1987, may be revoked by the taxpayer for any taxable year ending after December 31, 1986. For purposes of determining whether the taxpayer may make a further election under such section, such election (and any revocation under this paragraph) shall not be taken into account."