26 USC 247 - Contributions to Alaska Native Settlement Trusts

U.S Code last checked for updates: May 20, 2024

§ 247.

Contributions to Alaska Native Settlement Trusts

(a)

In general

(b)

Amount of deduction

The amount of the deduction under subsection (a) shall be equal to—

(1)

in the case of a cash contribution (regardless of the method of payment, including currency, coins, money order, or check), the amount of such contribution, or

(2)

in the case of a contribution not described in paragraph (1), the lesser of—

(A)

the Native Corporation’s adjusted basis in the property contributed, or

(B)

the fair market value of the property contributed.

(c)

Limitation and carryover

(1)

In general

(2)

Carryover

(d)

Definitions

(e)

Manner of making election

(1)

In general

(2)

Revocation

(f)

Additional rules

(1)

Earnings and profits

(2)

Gain or loss

(3)

Income

(4)

Period

(5)

Basis

The basis that a Settlement Trust has for which a deduction is allowed under this section shall be equal to the lesser of—

(A)

the adjusted basis of the Native Corporation in such property immediately before such contribution, or

(B)

the fair market value of the property immediately before such contribution.

(6)

Prohibition

(g)

Election by Settlement Trust to defer income recognition

(1)

In general

(2)

Treatment

In the case of property described in paragraph (1), any income or gain realized on the sale or exchange of such property shall be treated as—

(A)

for such amount of the income or gain as is equal to or less than the amount of income which would be included in income at the time of contribution under subsection (f)(3) but for the taxpayer’s election under this subsection, ordinary income, and

(B)

for any amounts of the income or gain which are in excess of the amount of income which would be included in income at the time of contribution under subsection (f)(3) but for the taxpayer’s election under this subsection, having the same character as if this subsection did not apply.

(3)

Election

(A)

In general

(B)

Revocation

(C)

Certain dispositions

(i)

In general

(I)

this section shall be applied as if the election under this subsection had not been made,

(II)

any income or gain which would have been included in the year of contribution under subsection (f)(3) but for the taxpayer’s election under this subsection shall be included in income for the taxable year of such contribution, and

(III)

the Settlement Trust shall pay any increase in tax resulting from such inclusion, including any applicable interest, and increased by 10 percent of the amount of such increase with interest.

(ii)

Assessment

(Added Pub. L. 115–97, title I, § 13821(b)(1), Dec. 22, 2017, 131 Stat. 2179.)

cite as: 26 USC 247