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46 U.S.C. § 53309 — Accumulation of deposits
Federal law — U.S. Code and appendices · legal_authorities
For any taxable year, amounts on deposit in a construction reserve fund on the last day of the taxable year, for which the requirements of [section 53310 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53310&num=0&edition=prelim) have been satisfied (to the extent they apply on the last day of the taxable year), are deemed to have been retained for the reasonable needs of the business within the meaning of section 537(a) of the Internal Revenue Code of 1986 ([26 U.S.C. 537(a)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section537/a&num=0&edition=prelim)).
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 53309
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Stable record: federal_law:legal_authorities:record_usc_56b6bbba26d34c3f44f84e09
Source file: Laws/federal/codes/united-states-code/title-46/section-53309-accumulation-of-deposits--6461ae126c.md
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Source location: Title 46, Chapter 533, § 53309; chapter-533-construction-reserve-funds.md
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For any taxable year, amounts on deposit in a construction reserve fund on the last day of the taxable year, for which the requirements of [section 53310 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53310&num=0&edition=prelim) have been satisfied (to the extent they apply on the last day of the taxable year), are deemed to have been retained for the reasonable needs of the business within the meaning of section 537(a) of the Internal Revenue Code of 1986 ([26 U.S.C. 537(a)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section537/a&num=0&edition=prelim)).
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Federal law — U.S. Code and appendices · legal_authorities
In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the accumulated taxable income (as defined in section 535) of each corporation described in section 532, an accumulated earnings tax equal to 20 percent of the accumulated taxable income.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 531
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Application of Sections 53306 and 53309.—** Sections 53306 and 53309 of this title apply to a deposit in a construction reserve fund only if, within 3 years after the date of the deposit (and any extension under subsection (c))—
(1)
(A) a contract is made for the construction or acquisition of a new vessel or, with the approval of the Secretary of Transportation, for a part interest in a new vessel or for the reconstruction or reconditioning of a new vessel;
(B) the deposit is expended or obligated for expenditure under that contract;
(C) at least 12.5 percent of the construction or contract price of the vessel is paid or irrevocably committed for payment; and
(D) the plans and specifications for the vessel are approved by the Secretary to the extent the Secretary considers necessary; or
(2) the deposit is expended or obligated for expenditure for the liquidation of existing or subsequently incurred purchase-money indebtedness to a person not a parent company of, or a company affiliated or associated with, the mortgagor on a new vessel.
**(b) Additional Requirements for Certain Vessels.—** In addition to the requirements of subsection (a)(1), for a vessel not constructed under a construction-differential subsidy contract or not bought from the Secretary of Transportation—
(1) at least 5 percent of the construction (or, if the contract covers more than one vessel, at least 5 percent of the construction of the first vessel) must be completed within 6 months after the date of the construction contract (or within the period of an extension under subsection (c)), as estimated by the Secretary and certified by the Secretary to the Secretary of the Treasury; and
(2) construction under the contract must be completed with reasonable dispatch thereafter.
*
Source: Supplied U.S. Code snapshot — release unconfirmed · 46 U.S.C. § 53310
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of this part, the term “reasonable needs of the business” includes—
(1) the reasonably anticipated needs of the business,
(2) the section 303 redemption needs of the business, and
(3) the excess business holdings redemption needs of the business.
**(b) Special rules** For purposes of subsection (a)—
(1) **Section 303 redemption needs** — The term “section 303 redemption needs” means, with respect to the taxable year of the corporation in which a shareholder of the corporation died or any taxable year thereafter, the amount needed (or reasonably anticipated to be needed) to make a redemption of stock included in the gross estate of the decedent (but not in excess of the maximum amount of stock to which section 303(a) may apply).
(2) **Excess business holdings redemption needs** — The term “excess business holdings redemption needs” means the amount needed (or reasonably anticipated to be needed) to redeem from a private foundation stock which—
(A) such foundation held on May 26, 1969 (or which was received by such foundation pursuant to a will or irrevocable trust to which section 4943(c)(5) applies), and
(B) constituted excess business holdings on May 26, 1969, or would have constituted excess business holdings as of such date if there were taken into account (i) stock received pursuant to a will or trust described in subparagraph (A), and (ii) the reduction in the total outstanding stock of the corporation which would have resulted solely from the redemption of stock held by the private foundation.
(3) **Obligations incurred to make redemptions** — In applying paragraphs (1) and (2), the discharge of any obligation incurred to make a redemption described in such paragraphs shall be treated as the making of such redemption.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 537
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 537. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1754
TITLE 26—INTERNAL REVENUE CODE
§ 536
amendment shall not be required to be made before the
first plan year beginning on or after Jan. 1, 1989, see
section 1140 of Pub. L. 99–514, as amended, set out as a
note under section 401 of this title.
§ 536. Income not placed on annual basis
Section 443(b) (relating to computation of tax
on change of annual accounting period) shall not
apply in the computation of the accumulated
earnings tax imposed by section 531.
(Aug. 16, 1954, ch. 736, 68A Stat. 182.)
§ 537. Reasonable needs of the business
(a) General rule
For purposes of this part, the term ‘‘reason-
able needs of the business’’ includes—
(1) the reasonably anticipated needs of the
business,
(2) the section 303 redemption needs of the
business, and
(3) the excess business holdings redemption
needs of the business.
(b) Special rules
For purposes of subsection (a)—
(1) Section 303 redemption needs
The term ‘‘section 303 redemption needs’’
means, with respect to the taxable year of the
corporation in which a shareholder of the cor-
poration died or any taxable year thereafter,
the amount needed (or reasonably anticipated
to be needed) to make a redemption of stock
included in the gross estate of the decedent
(but not in excess of the maximum amount of
stock to which section 303(a) may apply).
(2) Excess business holdings redemption needs
The term ‘‘excess business holdings redemp-
tion needs’’ means the amount needed (or rea-
sonably anticipated to be needed) to redeem
from a private foundation stock which—
(A) such foundation held on May 26, 1969
(or which was received by such foundation
pursuant to a will or irrevocable trust to
which section 4943(c)(5) applies), and
(B) constituted excess business holdings on
May 26, 1969, or wou
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 537
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 537. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 417
TITLE 46—SHIPPING
§ 53310
§ 53308. Order and proportions of deposits and
withdrawals
In this chapter—
(1) if the net proceeds of a sale or the net in-
demnity for a loss is deposited in more than
one deposit, the amount consisting of the gain
shall be deemed to be deposited first;
(2) amounts expended, obligated, or other-
wise withdrawn shall be applied against the
amounts deposited in the fund in the order of
deposit; and
(3) if a deposit consists in part of a gain not
recognized under section 53306 of this title,
any expenditure, obligation, or withdrawal ap-
plied against that deposit shall be deemed to
be a gain in the proportion that the part of the
deposit consisting of a gain bears to the total
amount of the deposit.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
53308 ..........
46 App.:1161(e).
June 29, 1936, ch. 858, title
V, § 511(e), as added Oct.
10, 1940, ch. 849, 54 Stat.
1107.
§ 53309. Accumulation of deposits
For any taxable year, amounts on deposit in a
construction reserve fund on the last day of the
taxable year, for which the requirements of sec-
tion 53310 of this title have been satisfied (to the
extent they apply on the last day of the taxable
year), are deemed to have been retained for the
reasonable needs of the business within the
meaning of section 537(a) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 537(a)).
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
53309 ..........
46 App.:1161(f).
June 29, 1936, ch. 858, title
V, § 511(f), as added Oct.
10, 1940, ch. 849, 54 Stat.
1107.
The words ‘
Source: Supplied 2024 U.S. Code historical extraction · 46 U.S.C. § 53309
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.