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26 U.S.C. § 7872 — Treatment of loans with below-market interest rates
Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment of gift loans and demand loans**
(1) **In general** — For purposes of this title, in the case of any below-market loan to which this section applies and which is a gift loan or a demand loan, the forgone interest shall be treated as—
(A) transferred from the lender to the borrower, and
(B) retransferred by the borrower to the lender as interest.
(2) **Time when transfers made** — Except as otherwise provided in regulations prescribed by the Secretary, any forgone interest attributable to periods during any calendar year shall be treated as transferred (and retransferred) under paragraph (1) on the last day of such calendar year.
**(b) Treatment of other below-market loans**
(1) **In general** — For purposes of this title, in the case of any below-market loan to which this section applies and to which subsection (a)(1) does not apply, the lender shall be treated as having transferred on the date the loan was made (or, if later, on the first day on which this section applies to such loan), and the borrower shall be treated as having received on such date, cash in an amount equal to the excess of—
(A) the amount loaned, over
(B) the present value of all payments which are required to be made under the terms of the loan.
(2) **Obligation treated as having original issue discount** — For purposes of this title—
(A) *In general* — Any below-market loan to which paragraph (1) applies shall be treated as having original issue discount in an amount equal to the excess described in paragraph (1).
(B) *Amount in addition to other original issue discount* — Any original issue discount which a loan is treated as having by reason of subparagraph (A) shall be in addition to any other original issue discount on such loan (determined without regard
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Source file: Laws/federal/codes/united-states-code/title-26/section-7872-treatment-of-loans-with-below-market-interest-rates--2ec4a49d92.md
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Source location: Title 26, Chapter 80, § 7872; chapter-080-general-rules.md
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**(a) Treatment of gift loans and demand loans**
(1) **In general** — For purposes of this title, in the case of any below-market loan to which this section applies and which is a gift loan or a demand loan, the forgone interest shall be treated as—
(A) transferred from the lender to the borrower, and
(B) retransferred by the borrower to the lender as interest.
(2) **Time when transfers made** — Except as otherwise provided in regulations prescribed by the Secretary, any forgone interest attributable to periods during any calendar year shall be treated as transferred (and retransferred) under paragraph (1) on the last day of such calendar year.
**(b) Treatment of other below-market loans**
(1) **In general** — For purposes of this title, in the case of any below-market loan to which this section applies and to which subsection (a)(1) does not apply, the lender shall be treated as having transferred on the date the loan was made (or, if later, on the first day on which this section applies to such loan), and the borrower shall be treated as having received on such date, cash in an amount equal to the excess of—
(A) the amount loaned, over
(B) the present value of all payments which are required to be made under the terms of the loan.
(2) **Obligation treated as having original issue discount** — For purposes of this title—
(A) *In general* — Any below-market loan to which paragraph (1) applies shall be treated as having original issue discount in an amount equal to the excess described in paragraph (1).
(B) *Amount in addition to other original issue discount* — Any original issue discount which a loan is treated as having by reason of subparagraph (A) shall be in addition to any other original issue discount on such loan (determined without regard to subparagraph (A)).
**(c) Below-market loans to which section applies**
(1) **In general** — Except as otherwise provided in this subsection and subsection (g), this section shall apply to—
(A) *Gifts* — Any below-market loan which is a gift loan.
(B) *Compensation-related loans* — Any below-market loan directly or indirectly between—
(i) an employer and an employee, or
(ii) an independent contractor and a person for whom such independent contractor provides services.
(C) *Corporation-shareholder loans* — Any below-market loan directly or indirectly between a corporation and any shareholder of such corporation.
(D) *Tax avoidance loans* — Any below-market loan 1 of the principal purposes of the interest arrangements of which is the avoidance of any Federal tax.
(E) *Other below-market loans* — To the extent provided in regulations, any below-market loan which is not described in subparagraph (A), (B), (C), or (F) if the interest arrangements of such loan have a significant effect on any Federal tax liability of the lender or the borrower.
(F) *Loans to qualified continuing care facilities* — Any loan to any qualified continuing care facility pursuant to a continuing care contract.
(2) **$10,000 de minimis exception for gift loans between individuals**
(A) *In general* — In the case of any gift loan directly between individuals, this section shall not apply to any day on which the aggregate outstanding amount of loans between such individuals does not exceed $10,000.
(B) *De minimis exception not to apply to loans attributable to acquisition of income-producing assets* — Subparagraph (A) shall not apply to any gift loan directly attributable to the purchase or carrying of income-producing assets.
(C) *Cross reference* — For limitation on amount treated as interest where loans do not exceed $100,000, see subsection (d)(1).
(3) **$10,000 de minimis exception for compensation-related and corporate-shareholder loans**
(A) *In general* — In the case of any loan described in subparagraph (B) or (C) of paragraph (1), this section shall not apply to any day on which the aggregate outstanding amount of loans between the borrower and lender does not exceed $10,000.
(B) *Exception not to apply where 1 of principal purposes is tax avoidance* — Subparagraph (A) shall not apply to any loan the interest arrangements of which have as 1 of their principal purposes the avoidance of any Federal tax.
**(d) Special rules for gift loans**
(1) **Limitation on interest accrual for purposes of income taxes where loans do not exceed $100,000**
(A) *In general* — For purposes of subtitle A, in the case of a gift loan directly between individuals, the amount treated as retransferred by the borrower to the lender as of the close of any year shall not exceed the borrower’s net investment income for such year.
(B) *Limitation not to apply where 1 of principal purposes is tax avoidance* — Subparagraph (A) shall not apply to any loan the interest arrangements of which have as 1 of their principal purposes the avoidance of any Federal tax.
(C) *Special rule where more than 1 gift loan outstanding* — For purposes of subparagraph (A), in any case in which a borrower has outstanding more than 1 gift loan, the net investment income of such borrower shall be allocated among such loans in proportion to the respective amounts which would be treated as retransferred by the borrower without regard to this paragraph.
(D) *Limitation not to apply where aggregate amount of loans exceed $100,000* — This paragraph shall not apply to any loan made by a lender to a borrower for any day on which the aggregate outstanding amount of loans between the borrower and lender exceeds $100,000.
(E) *Net investment income* — For purposes of this paragraph—
(i) *In general* — The term “net investment income” has the meaning given such term by section 163(d)(4).
(ii) *De minimis rule* — If the net investment income of any borrower for any year does not exceed $1,000, the net investment income of such borrower for such year shall be treated as zero.
(iii) *Additional amounts treated as interest* — In determining the net investment income of a person for any year, any amount which would be included in the gross income of such person for such year by reason of section 1272 if such section applied to all deferred payment obligations shall be treated as interest received by such person for such year.
(iv) *Deferred payment obligations* — The term “deferred payment obligation” includes any market discount bond, short-term obligation, United States savings bond, annuity, or similar obligation.
(2) **Special rule for gift tax** — In the case of any gift loan which is a term loan, subsection (b)(1) (and not subsection (a)) shall apply for purposes of chapter 12.
**(e) Definitions of below-market loan and forgone interest** For purposes of this section—
(1) **Below-market loan** — The term “below-market loan” means any loan if—
(A) in the case of a demand loan, interest is payable on the loan at a rate less than the applicable Federal rate, or
(B) in the case of a term loan, the amount loaned exceeds the present value of all payments due under the loan.
(2) **Forgone interest** — The term “forgone interest” means, with respect to any period during which the loan is outstanding, the excess of—
(A) the amount of interest which would have been payable on the loan for the period if interest accrued on the loan at the applicable Federal rate and were payable annually on the day referred to in subsection (a)(2), over
(B) any interest payable on the loan properly allocable to such period.
**(f) Other definitions and special rules** For purposes of this section—
(1) **Present value** — The present value of any payment shall be determined in the manner provided by regulations prescribed by the Secretary—
(A) as of the date of the loan, and
(B) by using a discount rate equal to the applicable Federal rate.
(2) **Applicable Federal rate**
(A) *Term loans* — In the case of any term loan, the applicable Federal rate shall be the applicable Federal rate in effect under section 1274(d) (as of the day on which the loan was made), compounded semiannually.
(B) *Demand loans* — In the case of a demand loan, the applicable Federal rate shall be the Federal short-term rate in effect under section 1274(d) for the period for which the amount of forgone interest is being determined, compounded semiannually.
(3) **Gift loan** — The term “gift loan” means any below-market loan where the forgoing of interest is in the nature of a gift.
(4) **Amount loaned** — The term “amount loaned” means the amount received by the borrower.
(5) **Demand loan** — The term “demand loan” means any loan which is payable in full at any time on the demand of the lender. Such term also includes (for purposes other than determining the applicable Federal rate under paragraph (2)) any loan if the benefits of the interest arrangements of such loan are not transferable and are conditioned on the future performance of substantial services by an individual. To the extent provided in regulations, such term also includes any loan with an indefinite maturity.
(6) **Term loan** — The term “term loan” means any loan which is not a demand loan.
(7) **Husband and wife treated as 1 person** — A husband and wife shall be treated as 1 person.
(8) **Loans to which section 483, 643(i), or 1274 applies** — This section shall not apply to any loan to which section 483, 643(i), or 1274 applies.
(9) **No withholding** — No amount shall be withheld under chapter 24 with respect to—
(A) any amount treated as transferred or retransferred under subsection (a), and
(B) any amount treated as received under subsection (b).
(10) **Special rule for term loans** — If this section applies to any term loan on any day, this section shall continue to apply to such loan notwithstanding paragraphs (2) and (3) of subsection (c). In the case of a gift loan, the preceding sentence shall only apply for purposes of chapter 12.
(11) **Time for determining rate applicable to employee relocation loans**
(A) *In general* — In the case of any term loan made by an employer to an employee the proceeds of which are used by the employee to purchase a principal residence (within the meaning of section 121), the determination of the applicable Federal rate shall be made as of the date the written contract to purchase such residence was entered into.
(B) *Paragraph only to apply to cases to which section 217 applies* — Subparagraph (A) shall only apply to the purchase of a principal residence in connection with the commencement of work by an employee or a change in the principal place of work of an employee to which section 217 applies.
**(g) Exception for certain loans to qualified continuing care facilities**
(1) **In general** — This section shall not apply for any calendar year to any below-market loan made by a lender to a qualified continuing care facility pursuant to a continuing care contract if the lender (or the lender’s spouse) attains age 65 before the close of such year.
(2) **$90,000 limit** — Paragraph (1) shall apply only to the extent that the aggregate outstanding amount of any loan to which such paragraph applies (determined without regard to this paragraph), when added to the aggregate outstanding amount of all other previous loans between the lender (or the lender’s spouse) and any qualified continuing care facility to which paragraph (1) applies, does not exceed $90,000.
(3) **Continuing care contract** — For purposes of this section, the term “continuing care contract” means a written contract between an individual and a qualified continuing care facility under which—
(A) the individual or individual’s spouse may use a qualified continuing care facility for their life or lives,
(B) the individual or individual’s spouse—
(i) will first—
(I) reside in a separate, independent living unit with additional facilities outside such unit for the providing of meals and other personal care, and
(II) not require long-term nursing care, and
(ii) then will be provided long-term and skilled nursing care as the health of such individual or individual’s spouse requires, and
(C) no additional substantial payment is required if such individual or individual’s spouse requires increased personal care services or long-term and skilled nursing care.
(4) **Qualified continuing care facility**
(A) *In general* — For purposes of this section, the term “qualified continuing care facility” means 1 or more facilities—
(i) which are designed to provide services under continuing care contracts, and
(ii) substantially all of the residents of which are covered by continuing care contracts.
(B) *Substantially all facilities must be owned or operated by borrower* — A facility shall not be treated as a qualified continuing care facility unless substantially all facilities which are used to provide services which are required to be provided under a continuing care contract are owned or operated by the borrower.
(C) *Nursing homes excluded* — The term “qualified continuing care facility” shall not include any facility which is of a type which is traditionally considered a nursing home.
(5) **Adjustment of limit for inflation** — In the case of any loan made during any calendar year after 1986, the dollar amount in paragraph (2) shall be increased by an amount equal to—
(A) such amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 1985” for “calendar year 2016” in subparagraph (A)(ii) thereof.
Any increase under the preceding sentence shall be rounded to the nearest multiple of $100 (or, if such increase is a multiple of $50, such increase shall be increased to the nearest multiple of $100).
(6) **Suspension of application** — Paragraph (1) shall not apply for any calendar year to which subsection (h) applies.
**(h) Exception for loans to qualified continuing care facilities**
(1) **In general** — This section shall not apply for any calendar year to any below-market loan owed by a facility which on the last day of such year is a qualified continuing care facility, if such loan was made pursuant to a continuing care contract and if the lender (or the lender’s spouse) attains age 62 before the close of such year.
(2) **Continuing care contract** — For purposes of this section, the term “continuing care contract” means a written contract between an individual and a qualified continuing care facility under which—
(A) the individual or individual’s spouse may use a qualified continuing care facility for their life or lives,
(B) the individual or individual’s spouse will be provided with housing, as appropriate for the health of such individual or individual’s spouse—
(i) in an independent living unit (which has additional available facilities outside such unit for the provision of meals and other personal care), and
(ii) in an assisted living facility or a nursing facility, as is available in the continuing care facility, and
(C) the individual or individual’s spouse will be provided assisted living or nursing care as the health of such individual or individual’s spouse requires, and as is available in the continuing care facility.
The Secretary shall issue guidance which limits such term to contracts which provide only facilities, care, and services described in this paragraph.
(3) **Qualified continuing care facility**
(A) *In general* — For purposes of this section, the term “qualified continuing care facility” means 1 or more facilities—
(i) which are designed to provide services under continuing care contracts,
(ii) which include an independent living unit, plus an assisted living or nursing facility, or both, and
(iii) substantially all of the independent living unit residents of which are covered by continuing care contracts.
(B) *Nursing homes excluded* — The term “qualified continuing care facility” shall not include any facility which is of a type which is traditionally considered a nursing home.
**(i) Regulations**
(1) **In general** — The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including—
(A) regulations providing that where, by reason of varying rates of interest, conditional interest payments, waivers of interest, disposition of the lender’s or borrower’s interest in the loan, or other circumstances, the provisions of this section do not carry out the purposes of this section, adjustments to the provisions of this section will be made to the extent necessary to carry out the purposes of this section,
(B) regulations for the purpose of assuring that the positions of the borrower and lender are consistent as to the application (or nonapplication) of this section, and
(C) regulations exempting from the application of this section any class of transactions the interest arrangements of which have no significant effect on any Federal tax liability of the lender or the borrower.
(2) **Estate tax coordination** — Under regulations prescribed by the Secretary, any loan which is made with donative intent and which is a term loan shall be taken into account for purposes of chapter 11 in a manner consistent with the provisions of subsection (b).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Exclusion** Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.
**(b) Limitations**
(1) **In general** — The amount of gain excluded from gross income under subsection (a) with respect to any sale or exchange shall not exceed $250,000.
(2) **Special rules for joint returns** — In the case of a husband and wife who make a joint return for the taxable year of the sale or exchange of the property—
(A) *$500,000 Limitation for certain joint returns* — Paragraph (1) shall be applied by substituting “$500,000” for “$250,000” if—
(i) either spouse meets the ownership requirements of subsection (a) with respect to such property;
(ii) both spouses meet the use requirements of subsection (a) with respect to such property; and
(iii) neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3).
(B) *Other joint returns* — If such spouses do not meet the requirements of subparagraph (A), the limitation under paragraph (1) shall be the sum of the limitations under paragraph (1) to which each spouse would be entitled if such spouses had not been married. For purposes of the preceding sentence, each spouse shall be treated as owning the property during the period that either spouse owned the property.
(3) **Application to only 1 sale or exchange every 2 years** — Subsection (a) shall not apply to any sale or exchange by the taxpayer if, during the 2-year period ending on the date of such sale or exchange, there was any other sale or exchange by the taxpayer to which subsec
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Distributable net income** For purposes of this part, the term “distributable net income” means, with respect to any taxable year, the taxable income of the estate or trust computed with the following modifications—
(1) **Deduction for distributions** — No deduction shall be taken under sections 651 and 661 (relating to additional deductions).
(2) **Deduction for personal exemption** — No deduction shall be taken under section 642(b) (relating to deduction for personal exemptions).
(3) **Capital gains and losses** — Gains from the sale or exchange of capital assets shall be excluded to the extent that such gains are allocated to corpus and are not (A) paid, credited, or required to be distributed to any beneficiary during the taxable year, or (B) paid, permanently set aside, or to be used for the purposes specified in section 642(c). Losses from the sale or exchange of capital assets shall be excluded, except to the extent such losses are taken into account in determining the amount of gains from the sale or exchange of capital assets which are paid, credited, or required to be distributed to any beneficiary during the taxable year. The exclusion under section 1202 shall not be taken into account.
(4) **Extraordinary dividends and taxable stock dividends** — For purposes only of subpart B (relating to trusts which distribute current income only), there shall be excluded those items of gross income constituting extraordinary dividends or taxable stock dividends which the fiduciary, acting in good faith, does not pay or credit to any beneficiary by reason of his determination that such dividends are allocable to corpus under the terms of the governing instrument and applicable local law.
(5) **Tax-exempt interest** — There shall be included any tax-exempt inter
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** There shall be allowed as a deduction all interest paid or accrued within the taxable year on indebtedness.
**(b) Installment purchases where interest charge is not separately stated**
(1) **General rule** — If personal property or educational services are purchased under a contract—
(A) which provides that payment of part or all of the purchase price is to be made in installments, and
(B) in which carrying charges are separately stated but the interest charge cannot be ascertained,
then the payments made during the taxable year under the contract shall be treated for purposes of this section as if they included interest equal to 6 percent of the average unpaid balance under the contract during the taxable year. For purposes of the preceding sentence, the average unpaid balance is the sum of the unpaid balance outstanding on the first day of each month beginning during the taxable year, divided by 12. For purposes of this paragraph, the term “educational services” means any service (including lodging) which is purchased from an educational organization described in section 170(b)(1)(A)(ii) and which is provided for a student of such organization.
(2) **Limitation** — In the case of any contract to which paragraph (1) applies, the amount treated as interest for any taxable year shall not exceed the aggregate carrying charges which are properly attributable to such taxable year.
**(c) Redeemable ground rents** For purposes of this subtitle, any annual or periodic rental under a redeemable ground rent (excluding amounts in redemption thereof) shall be treated as interest on an indebtedness secured by a mortgage.
**(d) Limitation on investment interest**
(1) **In general** — In the case of a taxpayer other than a corporation, the amount al
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of this part, the term “exempt facility bond” means any bond issued as part of an issue 95 percent or more of the net proceeds of which are to be used to provide—
(1) airports and spaceports,
(2) docks and wharves,
(3) mass commuting facilities,
(4) facilities for the furnishing of water,
(5) sewage facilities,
(6) solid waste disposal facilities,
(7) qualified residential rental projects,
(8) facilities for the local furnishing of electric energy or gas,
(9) local district heating or cooling facilities,
(10) qualified hazardous waste facilities,
(11) high-speed intercity rail facilities,
(12) environmental enhancements of hydroelectric generating facilities,
(13) qualified public educational facilities,
(14) qualified green building and sustainable design projects,
(15) qualified highway or surface freight transfer facilities,
(16) qualified broadband projects, or
(17) qualified carbon dioxide capture facilities.
**(b) Special exempt facility bond rules** For purposes of subsection (a)—
(1) **Certain facilities must be governmentally owned**
(A) *In general* — A facility shall be treated as described in paragraph (1), (2), (3), or (12) of subsection (a) only if all of the property to be financed by the net proceeds of the issue is to be owned by a governmental unit.
(B) *Safe harbor for leases and management contracts* — For purposes of subparagraph (A), property leased by a governmental unit shall be treated as owned by such governmental unit if—
(i) the lessee makes an irrevocable election (binding on the lessee and all successors in interest under the lease) not to claim depreciation or an investment credit with respect to such property,
(ii) the lease term (as defined in section 168(i)(3)) is not
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Married individuals filing joint returns and surviving spouses** There is hereby imposed on the taxable income of—
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $36,90015% of taxable income. Over $36,900 but not over $89,150$5,535, plus 28% of the excess over $36,900. Over $89,150 but not over $140,000$20,165, plus 31% of the excess over $89,150. Over $140,000 but not over $250,000$35,928.50, plus 36% of the excess over $140,000. Over $250,000$75,528.50, plus 39.6% of the excess over $250,000.
**(b) Heads of households** There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% of taxable income. Over $29,600 but not over $76,400$4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500$17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000$33,385, plus 36% of the excess over $127,500. Over $250,000$77,485, plus 39.6% of the excess over $250,000.
**(c) Unmarried individuals (other than surviving spouses and heads of households)** There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% of taxable income. Over $22,100 but not over $53,50
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Energy credit**
(1) **In general** — For purposes of section 46, except as provided in paragraphs (1)(B), (2)(B), and (3)(B) of subsection (c), the energy credit for any taxable year is the energy percentage of the basis of each energy property placed in service during such taxable year.
(2) **Energy percentage**
(A) *In general* — Except as provided in paragraphs (6) and (7), the energy percentage is—
(i) 6 percent in the case of—
(I) qualified fuel cell property,
(II) energy property described in clause (i) or (iii) of paragraph (3)(A) but only with respect to property the construction of which begins before January 1, 2025,
(III) energy property described in paragraph (3)(A)(ii),
(IV) qualified small wind energy property,
(V) waste energy recovery property,
(VI) energy storage technology,
(VII) qualified biogas property,
(VIII) microgrid controllers, and
(IX) energy property described in clauses (v) and (vii) of paragraph (3)(A), and
(ii) in the case of any energy property to which clause (i) does not apply, 0 percent.
(B) *Coordination with rehabilitation credit* — The energy percentage shall not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures.
(C) *Nonapplication of increases to energy percentage* — For purposes of energy property described in subparagraph (A)(ii), the energy percentage applicable to such property pursuant to such subparagraph shall not be increased or otherwise adjusted by any provision of this section.
(3) **Energy property** — For purposes of this subpart, the term “energy property” means any property—
(A) which is—
(i) equipment which uses solar energy to generate electricity, to he
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements for qualification** A trust created or organized in the United States and forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries shall constitute a qualified trust under this section—
(1) if contributions are made to the trust by such employer, or employees, or both, or by another employer who is entitled to deduct his contributions under section 404(a)(3)(B) (relating to deduction for contributions to profit-sharing and stock bonus plans), or by a charitable remainder trust pursuant to a qualified gratuitous transfer (as defined in section 664(g)(1)), for the purpose of distributing to such employees or their beneficiaries the corpus and income of the fund accumulated by the trust in accordance with such plan;
(2) if under the trust instrument it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries under the trust, for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees or their beneficiaries (but this paragraph shall not be construed, in the case of a multiemployer plan, to prohibit the return of a contribution within 6 months after the plan administrator determines that the contribution was made by a mistake of fact or law (other than a mistake relating to whether the plan is described in section 401(a) or the trust which is part of such plan is exempt from taxation under section 501(a), or the return of any withdrawal liability payment determined to be an overpayment within 6 months of such determination));
(3) if the plan of which such trust is a part satisfies the requireme
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 401
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, added Pub. L. 98–369, div. A, title V, § 543(a), July 18, 1984, 98 Stat. 891; amended Pub. L. 99–514, title XI, § 1173(b)(1)(A), (2), title XVIII, § 1854(c)(2)(A), (C), (D), Oct. 22, 1986, 100 Stat. 2515, 2879; Pub. L. 100–647, title I, § 1011B(h)(1), (2), Nov. 10, 1988, 102 Stat. 3490; Pub. L. 101–239, title VII, § 7301(a)–(c), Dec. 19, 1989, 103 Stat. 2346, 2347, prior to repeal, read as follows:
§ 133. Interest on certain loans used to acquire employer securities
(a) In general
Gross income does not include 50 percent of the interest received by—
(1) a bank (within the meaning of section 581),
(2) an insurance company to which subchapter L applies,
(3) a corporation actively engaged in the business of lending money, or
(4) a regulated investment company (as defined in section 851),
with respect to a securities acquisition loan.
(b) Securities acquisition loan
(1) In general
For purposes of this section, the term “securities acquisition loan” means—
(A) any loan to a corporation or to an employee stock ownership plan to the extent that the proceeds are used to acquire employer securities for the plan, or
(B) any loan to a corporation to the extent that, within 30 days, employer securities are transferred to the plan in an amount equal to the proceeds of such loan and such securities are allocable to accounts of plan participants within 1 year of the date of such loan.
For purposes of this paragraph, the term “employer securities” has the meaning given such term by section 409(l). The term “securities acquisition loan” shall not include a loan with a term greater than 15 years.
(2) Loans between related persons
The term “securities acquisition loan” shall not include—
(A) any loan made between corporations which are member
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 133
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Federal law — U.S. Code and appendices · legal_authorities
**(a) SEED Program** The United States shall implement, beginning in fiscal year 1990, a concerted Program of Support for East European Democracy (which may also be referred to as the “SEED Program”). The SEED Program shall be comprised of diverse undertakings designed to provide cost-effective assistance to those countries of Eastern Europe that have taken substantive steps toward institutionalizing political democracy and economic pluralism.
**(b) Objectives of SEED assistance** The President should ensure that the assistance provided to East European countries pursuant to this chapter is designed—
(1) to contribute to the development of democratic institutions and political pluralism characterized by—
(A) the establishment of fully democratic and representative political systems based on free and fair elections,
(B) effective recognition of fundamental liberties and individual freedoms, including freedom of speech, religion, and association,
(C) termination of all laws and regulations which impede the operation of a free press and the formation of political parties,
(D) creation of an independent judiciary, and
(E) establishment of non-partisan military, security, and police forces;
(2) to promote the development of a free market economic system characterized by—
(A) privatization of economic entities,
(B) establishment of full rights to acquire and hold private property, including land and the benefits of contractual relations,
(C) simplification of regulatory controls regarding the establishment and operation of businesses,
(D) dismantlement of all wage and price controls,
(E) removal of trade restrictions, including on both imports and exports,
(F) liberalization of investment and capital, including the repatriation of profits b
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 5411
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Page 4080
TITLE 26—INTERNAL REVENUE CODE
§ 7872
of the United States in effect on Oct. 22, 1986, see sec-
tion 1012(aa)(3), (4) of Pub. L. 100–647, set out as a note
under section 861 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1989
For provisions directing that if any amendments
made by subtitle A or subtitle C of title XI [§§ 1101–1147
and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L.
99–514 require an amendment to any plan, such plan
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.
§ 7872. Treatment of loans with below-market in-
terest rates
(a) Treatment of gift loans and demand loans
(1) In general
For purposes of this title, in the case of any
below-market loan to which this section ap-
plies and which is a gift loan or a demand
loan, the forgone interest shall be treated as—
(A) transferred from the lender to the bor-
rower, and
(B) retransferred by the borrower to the
lender as interest.
(2) Time when transfers made
Except as otherwise provided in regulations
prescribed by the Secretary, any forgone in-
terest attributable to periods during any cal-
endar year shall be treated as transferred (and
retransferred) under paragraph (1) on the last
day of such calendar year.
(b) Treatment of other below-market loans
(1) In general
For purposes of this title, in the case of any
below-market loan to which this section ap-
plies and to which subsection (a)(1) does not
apply, the lender shall be treated as having
transferred on the date the loan was made (or,
if later, on the first day on which this section
applies to such loan), and the borrower shall
be treated
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 7872
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.