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26 U.S.C. § 960 — Deemed paid credit for subpart F inclusions
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** For purposes of subpart A of this part, if there is included in the gross income of a domestic corporation any item of income under section 951(a)(1) with respect to any controlled foreign corporation with respect to which such domestic corporation is a United States shareholder, such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as are properly attributable to such item of income.
**(b) Special rules for distributions from previously taxed earnings and profits** For purposes of subpart A of this part—
(1) **In general** — If any portion of a distribution from a controlled foreign corporation to a domestic corporation which is a United States shareholder with respect to such controlled foreign corporation is excluded from gross income under section 959(a), such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as—
(A) are properly attributable to such portion, and
(B) have not been deemed to have to 11 So in original. been paid by such domestic corporation under this section for the taxable year or any prior taxable year.
(2) **Tiered controlled foreign corporations** — If section 959(b) applies to any portion of a distribution from a controlled foreign corporation to another controlled foreign corporation, such controlled foreign corporation shall be deemed to have paid so much of such other controlled foreign corporation’s foreign income taxes as—
(A) are properly attributable to such portion, and
(B) have not been deemed to have been paid by a domestic corporation under this section for the taxable year or any prior taxable year.
**(c) Special rules for foreign tax credit in year of receipt of previously taxed ea
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Source location: Title 26, Chapter 1, § 960; chapter-001-normal-taxes-and-surtaxes.md
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**(a) In general** For purposes of subpart A of this part, if there is included in the gross income of a domestic corporation any item of income under section 951(a)(1) with respect to any controlled foreign corporation with respect to which such domestic corporation is a United States shareholder, such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as are properly attributable to such item of income.
**(b) Special rules for distributions from previously taxed earnings and profits** For purposes of subpart A of this part—
(1) **In general** — If any portion of a distribution from a controlled foreign corporation to a domestic corporation which is a United States shareholder with respect to such controlled foreign corporation is excluded from gross income under section 959(a), such domestic corporation shall be deemed to have paid so much of such foreign corporation’s foreign income taxes as—
(A) are properly attributable to such portion, and
(B) have not been deemed to have to 11 So in original. been paid by such domestic corporation under this section for the taxable year or any prior taxable year.
(2) **Tiered controlled foreign corporations** — If section 959(b) applies to any portion of a distribution from a controlled foreign corporation to another controlled foreign corporation, such controlled foreign corporation shall be deemed to have paid so much of such other controlled foreign corporation’s foreign income taxes as—
(A) are properly attributable to such portion, and
(B) have not been deemed to have been paid by a domestic corporation under this section for the taxable year or any prior taxable year.
**(c) Special rules for foreign tax credit in year of receipt of previously taxed earnings and profits**
(1) **Increase in section 904 limitation** — In the case of any taxpayer who—
(A) either (i) chose to have the benefits of subpart A of this part for a taxable year beginning after September 30, 1993, in which he was required under section 951(a) to include any amount in his gross income, or (ii) did not pay or accrue for such taxable year any income, war profits, or excess profits taxes to any foreign country or to any possession of the United States,
(B) chooses to have the benefits of subpart A of this part for any taxable year in which he receives 1 or more distributions or amounts which are excludable from gross income under section 959(a) and which are attributable to amounts included in his gross income for taxable years referred to in subparagraph (A), and
(C) for the taxable year in which such distributions or amounts are received, pays, or is deemed to have paid, or accrues income, war profits, or excess profits taxes to a foreign country or to any possession of the United States with respect to such distributions or amounts,
the limitation under section 904 for the taxable year in which such distributions or amounts are received shall be increased by the lesser of the amount of such taxes paid, or deemed paid, or accrued with respect to such distributions or amounts or the amount in the excess limitation account as of the beginning of such taxable year.
(2) **Excess limitation account**
(A) *Establishment of account* — Each taxpayer meeting the requirements of paragraph (1)(A) shall establish an excess limitation account. The opening balance of such account shall be zero.
(B) *Increases in account* — For each taxable year beginning after September 30, 1993, the taxpayer shall increase the amount in the excess limitation account by the excess (if any) of—
(i) the amount by which the limitation under section 904(a) for such taxable year was increased by reason of the total amount of the inclusions in gross income under section 951(a) for such taxable year, over
(ii) the amount of any income, war profits, and excess profits taxes paid, or deemed paid, or accrued to any foreign country or possession of the United States which were allowable as a credit under section 901 for such taxable year and which would not have been allowable but for the inclusions in gross income described in clause (i).
Proper reductions in the amount added to the account under the preceding sentence for any taxable year shall be made for any increase in the credit allowable under section 901 for such taxable year by reason of a carryback if such increase would not have been allowable but for the inclusions in gross income described in clause (i).
(C) *Decreases in account* — For each taxable year beginning after September 30, 1993, for which the limitation under section 904 was increased under paragraph (1), the taxpayer shall reduce the amount in the excess limitation account by the amount of such increase.
(3) **Distributions of income previously taxed in years beginning before October 1, 1993** — If the taxpayer receives a distribution or amount in a taxable year beginning after September 30, 1993, which is excluded from gross income under section 959(a) and is attributable to any amount included in gross income under section 951(a) for a taxable year beginning before October 1, 1993, the limitation under section 904 for the taxable year in which such amount or distribution is received shall be increased by the amount determined under this subsection as in effect on the day before the date of the enactment of the Revenue Reconcilation 22 So in original. Probably should be “Reconciliation”. Act of 1993.
(4) **Cases in which taxes not to be allowed as deduction** — In the case of any taxpayer who—
(A) chose to have the benefits of subpart A of this part for a taxable year in which he was required under section 951(a) to include in his gross income an amount in respect of a controlled foreign corporation, and
(B) does not choose to have the benefits of subpart A of this part for the taxable year in which he receives a distribution or amount which is excluded from gross income under section 959(a) and which is attributable to earnings and profits of the controlled foreign corporation which was included in his gross income for the taxable year referred to in subparagraph (A),
no deduction shall be allowed under section 164 for the taxable year in which such distribution or amount is received for any income, war profits, or excess profits taxes paid or accrued to any foreign country or to any possession of the United States on or with respect to such distribution or amount.
(5) **Insufficient taxable income** — If an increase in the limitation under this subsection exceeds the tax imposed by this chapter for such year, the amount of such excess shall be deemed an overpayment of tax for such year.
**(d) Deemed paid credit for taxes properly attributable to tested income**
(1) **In general** — For purposes of subpart A of this part, if any amount is includible in the gross income of a domestic corporation under section 951A, such domestic corporation shall be deemed to have paid foreign income taxes equal to 90 percent of the product of—
(A) such domestic corporation’s inclusion percentage, multiplied by
(B) the aggregate tested foreign income taxes paid or accrued by controlled foreign corporations.
(2) **Inclusion percentage** — For purposes of paragraph (1), the term “inclusion percentage” means, with respect to any domestic corporation, the ratio (expressed as a percentage) of—
(A) such corporation’s net CFC tested income (as defined in section 951A(b)), divided by
(B) the aggregate amount described in section 951A(b)(1)(A) with respect to such corporation.
(3) **Tested foreign income taxes** — For purposes of paragraph (1), the term “tested foreign income taxes” means, with respect to any domestic corporation which is a United States shareholder of a controlled foreign corporation, the foreign income taxes paid or accrued by such foreign corporation which are properly attributable to the tested income of such foreign corporation taken into account by such domestic corporation under section 951A.
(4) **Disallowance of foreign tax credit with respect to distributions of previously taxed net CFC tested income** — No credit shall be allowed under section 901 for 10 percent of any foreign income taxes paid or accrued (or deemed paid under subsection (b)(1)) with respect to any amount excluded from gross income under section 959(a) by reason of an inclusion in gross income under section 951A(a).
**(e) Foreign income taxes** The term “foreign income taxes” means any income, war profits, or excess profits taxes paid or accrued to any foreign country or possession of the United States.
**(f) Regulations** The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section.
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Federal law — U.S. Code and appendices · legal_authorities
**(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
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Deduction allowed** There shall be allowed as a deduction for the taxable year an amount equal to—
(1) in the case of a taxable year beginning before January 1, 2021, the aggregate of the net operating loss carryovers to such year, plus the net operating loss carrybacks to such year, and
(2) in the case of a taxable year beginning after December 31, 2020, the sum of—
(A) the aggregate amount of net operating losses arising in taxable years beginning before January 1, 2018, carried to such taxable year, plus
(B) the lesser of—
(i) the aggregate amount of net operating losses arising in taxable years beginning after December 31, 2017, carried to such taxable year, or
(ii) 80 percent of the excess (if any) of—
(I) taxable income computed without regard to the deductions under this section and sections 199A and 250, over
(II) the amount determined under subparagraph (A).
For purposes of this subtitle, the term “net operating loss deduction” means the deduction allowed by this subsection.
**(b) Net operating loss carrybacks and carryovers**
(1) **Years to which loss may be carried**
(A) *General rule* — A net operating loss for any taxable year—
(i) shall be a net operating loss carryback to the extent provided in subparagraphs (B), (C)(i), and (D), and
(ii) except as provided in subparagraph (C)(ii), shall be a net operating loss carryover—
(I) in the case of a net operating loss arising in a taxable year beginning before January 1, 2018, to each of the 20 taxable years following the taxable year of the loss, and
(II) in the case of a net operating loss arising in a taxable year beginning after December 31, 2017, to each taxable year following the taxable year of the loss.
(B) *Farming losses*
(i) *I
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 172
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 286; Pub. L. 86–780, § 6(b)(2), Sept. 14, 1960, 74 Stat. 1016; Pub. L. 87–834, § 9(a), Oct. 16, 1962, 76 Stat. 999; Pub. L. 91–684, §§ 1, 2, Jan. 12, 1971, 84 Stat. 2068, 2069; Pub. L. 94–12, title VI, § 602(c)(6), Mar. 29, 1975, 89 Stat. 59; Pub. L. 94–455, title X, § 1033(a), Oct. 4, 1976, 90 Stat. 1626; Pub. L. 99–514, title XII, § 1202(a), Oct. 22, 1986, 100 Stat. 2528; Pub. L. 100–647, title I, § 1012(b)(1), (2), Nov. 10, 1988, 102 Stat. 3496; Pub. L. 105–34, title XI, §§ 1113(a), 1163(a), Aug. 5, 1997, 111 Stat. 970, 987; Pub. L. 108–357, title IV, § 405(a), Oct. 22, 2004, 118 Stat. 1498, related to deemed paid credit where domestic corporation owns 10 percent or more of voting stock of foreign corporation.
#### Effective Date of Repeal
Repeal applicable to taxable years of foreign corporations beginning after Dec. 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end, see section 14301(d) of Pub. L. 115–97, set out as an Effective Date of 2017 Amendment note under [section 78 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section78&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Discounted losses determined**
(1) **Separately computed for each accident year** — The amount of the discounted unpaid losses as of the end of any taxable year shall be the sum of the discounted unpaid losses (as of such time) separately computed under this section with respect to unpaid losses in each line of business attributable to each accident year.
(2) **Method of discounting** — The amount of the discounted unpaid losses as of the end of any taxable year attributable to any accident year shall be the present value of such losses (as of such time) determined by using—
(A) the amount of the undiscounted unpaid losses as of such time,
(B) the applicable interest rate, and
(C) the applicable loss payment pattern.
(3) **Limitation on amount of discounted losses** — In no event shall the amount of the discounted unpaid losses with respect to any line of business attributable to any accident year exceed the aggregate amount of unpaid losses with respect to such line of business for such accident year included on the annual statement filed by the taxpayer for the year ending with or within the taxable year.
(4) **Determination of applicable factors** — In determining the amount of the discounted unpaid losses attributable to any accident year—
(A) the applicable interest rate shall be the interest rate determined under subsection (c) for the calendar year with which such accident year ends, and
(B) the applicable loss payment pattern shall be the loss payment pattern determined under subsection (d) which is in effect for the calendar year with which such accident year ends.
**(b) Determination of undiscounted unpaid losses** For purposes of this section—
(1) **In general** — Except as otherwise provided in this subsection, the term “undiscount
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Federal law — U.S. Code and appendices · legal_authorities
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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definition** For purposes of this subtitle, the term “accumulated taxable income” means the taxable income, adjusted in the manner provided in subsection (b), minus the sum of the dividends paid deduction (as defined in section 561) and the accumulated earnings credit (as defined in subsection (c)).
**(b) Adjustments to taxable income** For purposes of subsection (a), taxable income shall be adjusted as follows:
(1) **Taxes** — There shall be allowed as a deduction Federal income and excess profits taxes and income, war profits, and excess profits taxes of foreign countries and possessions of the United States (to the extent not allowable as a deduction under section 275(a)(4)), accrued during the taxable year or deemed to be paid by a domestic corporation under section 960 for the taxable year, but not including the accumulated earnings tax imposed by section 531 or the personal holding company tax imposed by section 541.
(2) **Charitable contributions** — The deduction for charitable contributions provided under section 170 shall be allowed without regard to section 170(b)(2).
(3) **Special deductions disallowed** — The special deductions for corporations provided in part VIII (except section 248) of subchapter B (section 241 and following, relating to the deduction for dividends received by corporations, etc.) shall not be allowed.
(4) **Net operating loss** — The net operating loss deduction provided in section 172 shall not be allowed.
(5) **Capital losses**
(A) *In general* — Except as provided in subparagraph (B), there shall be allowed as a deduction an amount equal to the net capital loss for the taxable year (determined without regard to paragraph (7)(A)).
(B) *Recapture of previous deductions for capital gains* — The aggregate amount allowab
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definition** For purposes of this part, the term “undistributed personal holding company income” means the taxable income of a personal holding company adjusted in the manner provided in subsections (b), (c), and (d), minus the dividends paid deduction as defined in section 561. In the case of a personal holding company which is a foreign corporation, not more than 10 percent in value of the outstanding stock of which is owned (within the meaning of section 958(a)) during the last half of the taxable year by United States persons, the term “undistributed personal holding company income” means the amount determined by multiplying the undistributed personal holding company income (determined without regard to this sentence) by the percentage in value of its outstanding stock which is the greatest percentage in value of its outstanding stock so owned by United States persons on any one day during such period.
**(b) Adjustments to taxable income** For the purposes of subsection (a), the taxable income shall be adjusted as follows:
(1) **Taxes** — There shall be allowed as a deduction Federal income and excess profits taxes and income, war profits and excess profits taxes of foreign countries and possessions of the United States (to the extent not allowable as a deduction under section 275(a)(4)), accrued during the taxable year or deemed to be paid by a domestic corporation under section 960 for the taxable year, but not including the accumulated earnings tax imposed by section 531 or the personal holding company tax imposed by section 541.
(2) **Charitable contributions** — The deduction for charitable contributions provided under section 170 shall be allowed, but in computing such deduction the limitations in section 170(b)(1)(A), (B), (D), and (E) shall apply, a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement**
(1) **In general** — Every United States person shall furnish, with respect to any foreign business entity which such person controls, such information as the Secretary may prescribe relating to—
(A) the name, the principal place of business, and the nature of business of such entity, and the country under whose laws such entity is incorporated (or organized in the case of a partnership);
(B) in the case of a foreign corporation, its post-1986 undistributed earnings (as defined in section 902(c)); 11 See References in Text note below.
(C) a balance sheet for such entity listing assets, liabilities, and capital;
(D) transactions between such entity and—
(i) such person,
(ii) any corporation or partnership which such person controls, and
(iii) any United States person owning, at the time the transaction takes place—
(I) in the case of a foreign corporation, 10 percent or more of the value of any class of stock outstanding of such corporation, and
(II) in the case of a foreign partnership, at least a 10-percent interest in such partnership; and
(E)
(i) in the case of a foreign corporation, a description of the various classes of stock outstanding, and a list showing the name and address of, and number of shares held by, each United States person who is a shareholder of record owning at any time during the annual accounting period 5 percent or more in value of any class of stock outstanding of such foreign corporation, and
(ii) information comparable to the information described in clause (i) in the case of a foreign partnership.
The Secretary may also require the furnishing of any other information which is similar or related in nature to that specified in the preceding sentence or which the Secre
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Federal law — U.S. Code and appendices · legal_authorities
Page 2205
TITLE 26—INTERNAL REVENUE CODE
§ 960
1 So in original.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Pub. L. 115–97 applicable to taxable
years of foreign corporations beginning after Dec. 31,
2017, and to taxable years of United States shareholders
in which or with which such taxable years of foreign
corporations end, see section 14301(d) of Pub. L. 115–97,
set out as a note under section 78 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104–188 applicable to taxable
years of foreign corporations beginning after Dec. 31,
1996, and to taxable years of United States shareholders
within which or with which such taxable years of for-
eign corporations end, see section 1501(d) of Pub. L.
104–188, set out as a note under section 904 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103–66 applicable to taxable
years of foreign corporations beginning after Sept. 30,
1993, and to taxable years of United States shareholders
in which or with which such taxable years of foreign
corporations end, see section 13231(e) of Pub. L. 103–66,
set out as a note under section 951 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Pub. L. 100–647, title I, § 1012(bb)(7)(B), Nov. 10, 1988,
102 Stat. 3536, provided that: ‘‘The amendment made by
subparagraph (A) [amending this section] shall apply in
the case of transactions to which section 1248(e) of the
1986 Code applies and which occur after December 31,
1986.’’
EFFECTIVE DATE OF 1986 AMENDMENT
Pub. L. 99–514, title XII, § 1226(c)(2), Oct. 22, 1986, 100
Stat. 2560, provided that: ‘‘The amendment made by
subsection (b) [amending this section] shall apply to
distributions after the date of the enactment of this
Act [Oct.
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 960
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