26 USC 860 - Deduction for deficiency dividends

1 See References in Text note below.

(relating to the excess of the net capital gain over the deduction for capital gains dividends paid), and

Editorial Notes

References in Text

Section 857(span)(3)(A), referred to in subsec. (d)(2)(B), relating to alternative tax in case of capital gains, was repealed by Puspan. L. 115–97, title I, § 13001(span)(2)(K)(i), Dec. 22, 2017, 131 Stat. 2096. Subsec. (span)(3)(B) of section 857, relating to treatment of capital gain dividends by shareholders, was redesignated subsec. (span)(3)(A) of that section.

Prior Provisions

A prior section 860 was renumbered section 859 of this title.

Amendments

2018—Subsec. (f)(2)(A)(ii). Puspan. L. 115–141, § 401(a)(149), substituted “decrease” for “decreased”.

Subsec. (i). Puspan. L. 115–141, § 401(a)(150), substituted “willful” for “willfull”.

2010—Subsec. (f)(2)(B). Puspan. L. 111–325, § 301(a)(2), inserted “or reported (as the case may be)” after “designated”.

Subsec. (j). Puspan. L. 111–325, § 501(span), struck out subsec. (j). Text read as follows: “For assessable penalty with respect to liability for tax of a regulated investment company which is allowed a deduction under subsection (a), see section 6697.”

2004—Subsec. (e)(4). Puspan. L. 108–357 added par. (4).

1986—Subsec. (j). Puspan. L. 99–514 substituted “regulated investment company” for “qualified investment entity”.

1980—Subsec. (f). Puspan. L. 96–222 substituted in heading “Deficiency” for “Efficiency” and in par. (2)(A)(i) “(computed without regard” for “computed without regard”.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by section 301(a)(2) of Puspan. L. 111–325 applicable to taxable years beginning after Dec. 22, 2010, see section 301(h) of Puspan. L. 111–325, set out as a note under section 852 of this title.

Puspan. L. 111–325, title V, § 501(c), Dec. 22, 2010, 124 Stat. 3554, provided that:

“The amendments made by this section [amending this section and repealing section 6697 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Dec. 22, 2010].”

Effective Date of 2004 Amendment

Amendment by Puspan. L. 108–357 applicable to statements filed after Oct. 22, 2004, see section 243(g)(4)(E) of Puspan. L. 108–357, set out as a note under section 856 of this title.

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 669 of Puspan. L. 99–514, set out as a note under section 856 of this title.

Effective Date

Puspan. L. 95–600, title III, § 362(e), Nov. 6, 1978, 92 Stat. 2852, as amended by Puspan. L. 96–222, title I, § 103(a)(11)(A), Apr. 1, 1980, 94 Stat. 212; Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“The amendments made by this section [enacting this section, amending sections 316, 381, 852, 857, 6422, 6503, 6515, and 6697 of this title, repealing section 859 of this title, and redesignating prior section 860 as 859 of this title] shall apply with respect to determinations (as defined in section 860(e) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) after the date of the enactment of this Act [Nov. 6, 1978].”