2018 US Code
Title 26 - Internal Revenue Code
Subtitle A - Income Taxes
Chapter 1 - Normal Taxes and Surtaxes
Subchapter R - Election to Determine Corporate Tax on Certain International Shipping Activities Using per Ton Rate
Sec. 1358 - Allocation of credits, income, and deductions

Download PDF
Citation 26 U.S.C. § 1358 (2018)
Section Name §1358. Allocation of credits, income, and deductions
Section Text (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.

Source Credit

(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 AMENDMENTS

2018—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".

EFFECTIVE DATE

Section 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.

Publication Title United States Code, 2018 Edition, Title 26 - INTERNAL REVENUE CODE
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter R - Election To Determine Corporate Tax on Certain International Shipping Activities Using Per Ton Rate
Sec. 1358 - Allocation of credits, income, and deductions
Contains section 1358
Date 2018
Laws In Effect As Of Date January 14, 2019
Positive Law No
Disposition standard
Statutes at Large References 118 Stat. 1456
132 Stat. 1193
Public Law References Public Law 108-357, Public Law 115-141
Disclaimer: These codes may not be the most recent version. United States may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.