26 U.S.C. § 1358

Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)

Section 1358 - Allocation of credits, income, and deductions

(a) Qualifying shipping activities

For purposes of this chapter, the qualifying shipping activities of an electing corporation shall be treated as a separate trade or business activity distinct from all other activities conducted by such corporation.

(b) Exclusion of credits or deductions

(1) No deduction shall be allowed against the notional shipping income of an electing corporation, and no credit shall be allowed against the tax imposed by section 1352(2).

(2) No deduction shall be allowed for any net operating loss attributable to the qualifying shipping activities of any person to the extent that such loss is carried forward by such person from a taxable year preceding the first taxable year for which such person was an electing corporation.

(c) Transactions not at arm's length

Section 482 applies in accordance with this subsection to a transaction or series of transactions-

(1) as between an electing corporation and another person, or

(2) as between a person's qualifying shipping activities and other activities carried on by it.

26 U.S.C. § 1358

Added Pub. L. 108-357, title II, §248(a), Oct. 22, 2004, 118 Stat. 1456; amended Pub. L. 115-141, div. U, title IV, §401(a)(188), (189), Mar. 23, 2018, 132 Stat. 1193.

EDITORIAL NOTES

AMENDMENTS2018-Subsec. (b)(1). Pub. L. 115-141, §401(a) (188), substituted "section 1352(2)" for "section 1352(a)(2)".Subsec. (c)(2). Pub. L. 115-141, §401(a) (189), substituted "a person's" for "an person's".

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATESection applicable to taxable years beginning after Oct. 22, 2004, see section 248(c) of Pub. L. 108-357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.

corporation

The term "corporation" includes associations, joint-stock companies, and insurance companies.

person

The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.

taxable year

The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.

trade or business

The term "trade or business" includes the performance of the functions of a public office.

transaction

The term "transaction" includes a series of transactions.