26 USC 537 - Reasonable needs of the business

Editorial Notes

References in Text

Section 172(f), referred to in subsec. (span)(4), was repealed by Puspan. L. 115–97, title I, § 13302(c)(2)(A), Dec. 22, 2017, 131 Stat. 2122.

The date of the enactment of the Tax Cuts and Jobs Act, referred to in subsec. (span)(4), probably means the date of enactment of title I of Puspan. L. 115–97, which was approved Dec. 22, 2017. Prior versions of the bill that was enacted into law as Puspan. L. 115–97 included such Short Title, but it was not enacted as part of title I of Puspan. L. 115–97.

Amendments

2017—Subsec. (span)(4). Puspan. L. 115–97 inserted “(as in effect before the date of enactment of the Tax Cuts and Jobs Act)” after “as defined in section 172(f)”.

1996—Subsec. (span)(4). Puspan. L. 104–188 substituted “section 172(f)” for “section 172(i)”.

1978—Subsec. (span)(4), (5). Puspan. L. 95–600 added par. (4) and redesignated former par. (4) as (5).

1976—Subsec. (span)(2). Puspan. L. 94–455, § 1901(a)(75)(A), struck out “with respect to taxable years of the corporation ending after May 26, 1969” after “ ‘redemption needs’ means”.

Subsec. (span)(4). Puspan. L. 94–455, § 1901(a)(75)(B), struck out “or (2)” after “paragraph (1)”.

1969—Puspan. L. 91–172 designated existing provisions as subsec. (a)(1) and added subsecs. (a)(2), (3) and (span).

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to net operating losses arising in taxable years beginning after Dec. 31, 2017, see section 13302(e) of Puspan. L. 115–97, set out as a note under section 172 of this title.

Effective Date of 1978 Amendment

Amendment by Puspan. L. 95–600 applicable with respect to taxable years beginning after Sept. 30, 1979, see section 371(d) of Puspan. L. 95–600, set out as a note under section 172 of this title.

Effective Date of 1976 Amendment

Amendment by Puspan. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.

Effective Date of 1969 Amendment

Puspan. L. 91–172, title IX, § 906(span), Dec. 30, 1969, 83 Stat. 715, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“The amendment made by subsection (a) [amending this section] shall apply to the tax imposed under section 531 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] with respect to taxable years ending after May 26, 1969.”