Browse Arkansas Code titles and sections

26 U.S.C. § 959 — Exclusion from gross income of previously taxed earnings and profits

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 959 — Exclusion from gross income of previously taxed earnings and profits

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 959

Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.

Original supplied file — preserved unchanged

Download original Markdown file

File SHA-256: a32508eb7c4c5da4d723d0b28114c238b09ac7decbd15858f9eb9c0101337735. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.

Authority boundary: historical or unconfirmed source not current law verified.

Open the recorded source website ↗

Record provenance

Stable record: federal_law:legal_authorities:record_usc_769be6a0872e0063f5461bae
Source file: Laws/federal/codes/united-states-code/title-26/section-959-exclusion-from-gross-income-of-previously-taxed-earnings-and-profits--ff9a72610e.md
Pages: Not recorded – Not recorded
Passage SHA-256: 5f0b1e7e102fb9a12a3295d986bccb325ccc0c3dc9f70da8e116db8b27846a9b

Source location: Title 26, Chapter 1, § 959; chapter-001-normal-taxes-and-surtaxes.md

Stored source content

**(a) Exclusion from gross income of United States persons** For purposes of this chapter, the earnings and profits of a foreign corporation attributable to amounts which are, or have been, included in the gross income of a United States shareholder under section 951(a) shall not, when— (1) such amounts are distributed to, or (2) such amounts would, but for this subsection, be included under section 951(a)(1)(B) in the gross income of, such shareholder (or any other United States person who acquires from any person any portion of the interest of such United States shareholder in such foreign corporation, but only to the extent of such portion, and subject to such proof of the identity of such interest as the Secretary may by regulations prescribe) directly or indirectly through a chain of ownership described under section 958(a), be again included in the gross income of such United States shareholder (or of such other United States person). The rules of subsection (c) shall apply for purposes of paragraph (1) of this subsection and the rules of subsection (f) shall apply for purposes of paragraph (2) of this subsection. **(b) Exclusion from gross income of certain foreign subsidiaries** For purposes of section 951(a), the earnings and profits of a controlled foreign corporation attributable to amounts which are, or have been, included in the gross income of a United States shareholder under section 951(a), shall not, when distributed through a chain of ownership described under section 958(a), be also included in the gross income of another controlled foreign corporation in such chain for purposes of the application of section 951(a) to such other controlled foreign corporation with respect to such United States shareholder (or to any other United States shareholder who acquires from any person any portion of the interest of such United States shareholder in the controlled foreign corporation, but only to the extent of such portion, and subject to such proof of identity of such interest as the Secretary may prescribe by regulations). **(c) Allocation of distributions** For purposes of subsections (a) and (b), section 316(a) shall be applied by applying paragraph (2) thereof, and then paragraph (1) thereof— (1) first to the aggregate of— (A) earnings and profits attributable to amounts included in gross income under section 951(a)(1)(B) (or which would have been included except for subsection (a)(2) of this section), and (B) earnings and profits attributable to amounts included in gross income under section 951(a)(1)(C) (or which would have been included except for subsection (a)(3) of this section), with any distribution being allocated between earnings and profits described in subparagraph (A) and earnings and profits described in subparagraph (B) proportionately on the basis of the respective amounts of such earnings and profits, (2) then to earnings and profits attributable to amounts included in gross income under section 951(a)(1)(A) (but reduced by amounts not included under subparagraph (B) or (C) of section 951(a)(1) because of the exclusions in paragraphs (2) and (3) of subsection (a) of this section), and (3) then to other earnings and profits. References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996. **(d) Distributions excluded from gross income not to be treated as dividends** Any distribution excluded from gross income under subsection (a) shall be treated, for purposes of this chapter, as a distribution which is not a dividend; except that such distributions shall immediately reduce earnings and profits. **(e) Coordination with amounts previously taxed under section 1248** For purposes of this section and section 960(c), any amount included in the gross income of any person as a dividend by reason of subsection (a) or (f) of section 1248 shall be treated as an amount included in the gross income of such person (or, in any case to which section 1248(e) applies, of the domestic corporation referred to in section 1248(e)(2)) under section 951(a)(1)(A). **(f) Allocation rules for certain inclusions** (1) **In general** — For purposes of this section, amounts that would be included under subparagraph (B) of section 951(a)(1) (determined without regard to this section) shall be treated as attributable first to earnings described in subsection (c)(2), and then to earnings described in subsection (c)(3). (2) **Treatment of distributions** — In applying this section, actual distributions shall be taken into account before amounts that would be included under section 951(a)(1)(B) (determined without regard to this section).

Cross-references

Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 904 — Limitation on credit

**(a) Limitation** The total amount of the credit taken under section 901(a) shall not exceed the same proportion of the tax against which such credit is taken which the taxpayer’s taxable income from sources without the United States (but not in excess of the taxpayer’s entire taxable income) bears to his entire taxable income for the same taxable year. **(b) Taxable income for purpose of computing limitation** (1) **Personal exemptions** — For purposes of subsection (a), the taxable income in the case of an individual, estate, or trust shall be computed without any deduction for personal exemptions under section 151 or 642(b). (2) **Capital gains** — For purposes of this section— (A) *In general* — Taxable income from sources outside the United States shall include gain from the sale or exchange of capital assets only to the extent of foreign source capital gain net income. (B) *Special rules where capital gain rate differential* — In the case of any taxable year for which there is a capital gain rate differential— (i) in lieu of applying subparagraph (A), the taxable income from sources outside the United States shall include gain from the sale or exchange of capital assets only in an amount equal to foreign source capital gain net income reduced by the rate differential portion of foreign source net capital gain, (ii) the entire taxable income shall include gain from the sale or exchange of capital assets only in an amount equal to capital gain net income reduced by the rate differential portion of net capital gain, and (iii) for purposes of determining taxable income from sources outside the United States, any net capital loss (and any amount which is a short-term capital loss under section 1212(a)) from sources outside the United States to

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 904

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

26 U.S.C. § 1248 — Gain from certain sales or exchanges of stock in certain foreign corporations

**(a) General rule** If— (1) a United States person sells or exchanges stock in a foreign corporation, and (2) such person owns, within the meaning of section 958(a), or is considered as owning by applying the rules of ownership of section 958(b), 10 percent or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation at any time during the 5-year period ending on the date of the sale or exchange when such foreign corporation was a controlled foreign corporation (as defined in section 957), then the gain recognized on the sale or exchange of such stock shall be included in the gross income of such person as a dividend, to the extent of the earnings and profits of the foreign corporation attributable (under regulations prescribed by the Secretary) to such stock which were accumulated in taxable years of such foreign corporation beginning after December 31, 1962, and during the period or periods the stock sold or exchanged was held by such person while such foreign corporation was a controlled foreign corporation. For purposes of this section, a United States person shall be treated as having sold or exchanged any stock if, under any provision of this subtitle, such person is treated as realizing gain from the sale or exchange of such stock. **(b) Limitation on tax applicable to individuals** In the case of an individual, if the stock sold or exchanged is a capital asset (within the meaning of section 1221) and has been held for more than 1 year, the tax attributable to an amount included in gross income as a dividend under subsection (a) shall not be greater than a tax equal to the sum of— (1) a pro rata share of the excess of— (A) the taxes that would have been paid by the foreign corporation with respect to its

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1248

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

26 U.S.C. § 951 — Amounts included in gross income of United States shareholders

**(a) Amounts included** (1) **In general** — If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the “CFC year”)— (A) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on any day during the CFC year shall include in gross income such shareholder’s pro rata share (determined under paragraph (2)) of the corporation’s subpart F income for the CFC year, and (B) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on the last day, in the CFC year, on which such corporation is a controlled foreign corporation shall include in gross income the amount determined under section 956 with respect to such shareholder for the CFC year (but only to the extent not excluded from gross income under section 959(a)(2)). (2) **Pro rata share of subpart F income** — A United States shareholder’s pro rata share of a controlled foreign corporation’s subpart F income for a CFC year shall be the portion of such income which is attributable to— (A) the stock of such corporation owned (within the meaning of section 958(a)) by such shareholder, and (B) any period of the CFC year during which— (i) such shareholder owned (within the meaning of section 958(a)) such stock, (ii) such shareholder was a United States shareholder of such corporation, and (iii) such corporation was a controlled foreign corporation. (3) **Taxable year of inclusion** — Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder’s taxable year which includes the l

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 951

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

26 U.S.C. § 78 — Gross up for deemed paid foreign tax credit

If a domestic corporation chooses to have the benefits of subpart A of part III of subchapter N (relating to foreign tax credit) for any taxable year, an amount equal to the taxes deemed to be paid by such corporation under subsections (a) and (d) of section 960 (determined without regard to the phrase “90 percent of” in subsection (d)(1) thereof) for such taxable year shall be treated for purposes of this title (other than sections 245 and 245A) as a dividend received by such domestic corporation from the foreign corporation.

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 78

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

26 U.S.C. § 959 — Exclusion from gross income of previously

Page 2203 TITLE 26—INTERNAL REVENUE CODE § 959 Subsec. (b)(4). Pub. L. 115–97, § 14213(a)(1), struck out par. (4) which read as follows: ‘‘Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States per- son.’’ 1996—Subsec. (a)(1). Pub. L. 104–188, § 1704(t)(7), sub- stituted ‘‘section 960(a)(1)’’ for ‘‘sections 955(b)(1)(A) and (B), 955(c)(2)(A)(ii), and 960(a)(1)’’ in introductory provisions. Subsec. (b). Pub. L. 104–188, § 1703(i)(4), substituted ‘‘956(c)(2)’’ for ‘‘956(b)(2)’’ wherever appearing in intro- ductory and closing provisions. 1976—Subsec. (b). Pub. L. 94–455 inserted ‘‘956(b)(2)’’ after ‘‘purposes of sections 951(b), 954(d)(3),’’, ‘‘to treat the stock of a domestic corporation as owned by a United States shareholder of the controlled foreign cor- poration for purposes of section 956(b)(2)’’ after ‘‘mean- ing of section 954(d)(3)’’ and ‘‘Paragraphs (1) and (4) shall not apply for purposes of section 956(b)(2) to treat stock of a domestic corporation as not owned by a United States shareholder’’ following subpar. (4). 1964—Subsec. (b). Pub. L. 88–554 redesignated pars. (4) and (5) as (3) and (4), respectively, struck out former par. (3) which related to ownership of stock by a part- nership, estate, trust, or corporation for purposes of ap- plying first sentence of subpars. (A) and (B), and sub- par. (C)(i) of section 318(a)(2) of this title, and made amendments throughout subsec. (b) to conform to changes made in section 318 of this title by Pub. L. 88–554. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–97, title I, § 14213(b), Dec. 22, 2017, 131 Stat. 2217, provided that

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 959

Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.