26 USC 545 - Undistributed personal holding company income

U.S Code last checked for updates: May 17, 2024

§ 545.

Undistributed personal holding company income

(a)

Definition

(b)

Adjustments to taxable income

(1)

Taxes

(2)

Charitable contributions

(3)

Special deductions disallowed

(4)

Net operating loss

(5)

Net capital gains

There shall be allowed as a deduction the net capital gain for the taxable year, minus the taxes imposed by this subtitle attributable to such net capital gain. The taxes attributable to such net capital gain shall be an amount equal to the difference between—

(A)

the taxes imposed by this subtitle (except the tax imposed by this part) for such year, and

(B)

such taxes computed for such year without including such excess in taxable income.

(6)

Expenses and depreciation applicable to property of the taxpayer

The aggregate of the deductions allowed under section 162 (relating to trade or business expenses) and section 167 (relating to depreciation), which are allocable to the operation and maintenance of property owned or operated by the corporation, shall be allowed only in an amount equal to the rent or other compensation received for the use of, or the right to use, the property, unless it is established (under regulations prescribed by the Secretary) to the satisfaction of the Secretary—

(A)

that the rent or other compensation received was the highest obtainable, or, if none was received, that none was obtainable;

(B)

that the property was held in the course of a business carried on bona fide for profit; and

(C)

either that there was reasonable expectation that the operation of the property would result in a profit, or that the property was necessary to the conduct of the business.

(7)

Special rule for capital gains and losses of foreign corporations

(c)

Certain foreign corporations

(Aug. 16, 1954, ch. 736, 68A Stat. 189; Pub. L. 85–866, title I, § 32(a), (b), Sept. 2, 1958, 72 Stat. 1631; Pub. L. 87–403, § 3(d), Feb. 2, 1962, 76 Stat. 7; Pub. L. 87–834, § 9(d)(2), Oct. 16, 1962, 76 Stat. 1001; Pub. L. 88–272, title II, §§ 207(b)(5), 209(c)(2), 225(i)(1), (2), Feb. 26, 1964, 78 Stat. 42, 46, 90; Pub. L. 89–719, title I, § 101(b)(2), Nov. 2, 1966, 80 Stat. 1132; Pub. L. 89–809, title I, § 104(h)(3), Nov. 13, 1966, 80 Stat. 1560; Pub. L. 91–172, title II, § 201(a)(2)(B), Dec. 30, 1969, 83 Stat. 558; Pub. L. 94–455, title X, § 1033(b)(4), title XIX, §§ 1901(a)(77), (b)(20)(B), (32)(E), (33)(D), 1906(b)(13)(A), 1951(b)(9)(A), Oct. 4, 1976, 90 Stat. 1628, 1777, 1797, 1800, 1801, 1834, 1839; Pub. L. 97–448, title I, § 102(m)(2), Jan. 12, 1983, 96 Stat. 2374; Pub. L. 99–514, title XII, § 1225(b), Oct. 22, 1986, 100 Stat. 2559; Pub. L. 101–508, title XI, § 11801(a)(24), (c)(10)(B), Nov. 5, 1990, 104 Stat. 1388–521, 1388–527; Pub. L. 109–280, title XII, § 1206(b)(2), Aug. 17, 2006, 120 Stat. 1070; Pub. L. 113–295, div. A, title II, § 221(a)(64), Dec. 19, 2014, 128 Stat. 4048; Pub. L. 115–97, title I, § 14301(c)(4), Dec. 22, 2017, 131 Stat. 2222.)

cite as: 26 USC 545