2018 US Code
Title 46 - Shipping
Subtitle V - Merchant Marine
Part F - Government-Owned Merchant Vessels
Chapter 573 - Vessel Trade-in Program
Sec. 57307 - Recognition of gain for tax purposes

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Citation 46 U.S.C. § 57307 (2018)
Section Name §57307. Recognition of gain for tax purposes
Section Text

The owner of an obsolete vessel does not recognize a gain under the Federal income tax laws when the vessel is transferred to the Secretary of Transportation in exchange for a trade-in allowance under this chapter. The basis of the new vessel acquired with the allowance is the same as the basis of the obsolete vessel—

(1) increased by the difference between the cost of the new vessel and the trade-in allowance of the obsolete vessel; and

(2) decreased by the amount of loss recognized on the transfer.

Source Credit

(Pub. L. 109–304, §8(c), Oct. 6, 2006, 120 Stat. 1663.)

Editorial Notes
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large)
57307 46 App.:1160(e). June 29, 1936, ch. 858, title V, §510(e), as added Aug. 4, 1939, ch. 417, §7, 53 Stat. 1184; Pub. L. 97–31, §12(91), Aug. 6, 1981, 95 Stat. 161.

The words "for gain or loss upon a sale or exchange and for depreciation under the applicable Federal income-tax laws" and "or vessels exchanged for credit upon the acquisition of such new vessel" are omitted as unnecessary. In paragraph (1), the words "the difference between the cost of the new vessel and the trade-in allowance of the obsolete vessel" are substituted for "the amount of the cost of such vessel (other than the cost represented by such obsolete vessel or vessels)" for clarity.

Publication Title United States Code, 2018 Edition, Title 46 - SHIPPING
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 46 - SHIPPING
Subtitle V - Merchant Marine
Part F - Government-Owned Merchant Vessels
CHAPTER 573 - VESSEL TRADE-IN PROGRAM
Sec. 57307 - Recognition of gain for tax purposes
Contains section 57307
Date 2018
Laws In Effect As Of Date January 14, 2019
Positive Law Yes
Disposition standard
Statutes at Large References 53 Stat. 1184
95 Stat. 161
120 Stat. 1663
Public Law References Public Law 97-31, Public Law 109-304
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