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26 U.S.C. § 1385 — Amounts includible in patron’s gross income
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** Except as otherwise provided in subsection (b), each person shall include in gross income—
(1) the amount of any patronage dividend which is paid in money, a qualified written notice of allocation, or other property (except a nonqualified written notice of allocation), and which is received by him during the taxable year from an organization described in section 1381(a),
(2) any amount, described in section 1382 (c)(2)(A) (relating to certain nonpatronage distributions by tax-exempt farmers’ cooperatives), which is paid in money, a qualified written notice of allocation, or other property (except a nonqualified written notice of allocation), and which is received by him during the taxable year from an organization described in section 1381(a)(1), and
(3) the amount of any per-unit retain allocation which is paid in qualified per-unit retain certificates and which is received by him during the taxable year from an organization described in section 1381(a).
**(b) Exclusion from gross income** Under regulations prescribed by the Secretary, the amount of any patronage dividend, and any amount received on the redemption, sale, or other disposition of a nonqualified written notice of allocation which was paid as a patronage dividend, shall not be included in gross income to the extent that such amount—
(1) is properly taken into account as an adjustment to basis of property, or
(2) is attributable to personal, living, or family items.
**(c) Treatment of certain nonqualified written notices of allocation and certain nonqualified per-unit retain certificates**
(1) **Application of subsection** — This subsection shall apply to—
(A) any nonqualified written notice of allocation which—
(i) was paid as a patronage dividend, or
(ii) was paid
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Stable record: federal_law:legal_authorities:record_usc_9e118f28aefb9e6753a4fe7e
Source file: Laws/federal/codes/united-states-code/title-26/section-1385-amounts-includible-in-patrons-gross-income--1494743e61.md
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Source location: Title 26, Chapter 1, § 1385; chapter-001-normal-taxes-and-surtaxes.md
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**(a) General rule** Except as otherwise provided in subsection (b), each person shall include in gross income—
(1) the amount of any patronage dividend which is paid in money, a qualified written notice of allocation, or other property (except a nonqualified written notice of allocation), and which is received by him during the taxable year from an organization described in section 1381(a),
(2) any amount, described in section 1382 (c)(2)(A) (relating to certain nonpatronage distributions by tax-exempt farmers’ cooperatives), which is paid in money, a qualified written notice of allocation, or other property (except a nonqualified written notice of allocation), and which is received by him during the taxable year from an organization described in section 1381(a)(1), and
(3) the amount of any per-unit retain allocation which is paid in qualified per-unit retain certificates and which is received by him during the taxable year from an organization described in section 1381(a).
**(b) Exclusion from gross income** Under regulations prescribed by the Secretary, the amount of any patronage dividend, and any amount received on the redemption, sale, or other disposition of a nonqualified written notice of allocation which was paid as a patronage dividend, shall not be included in gross income to the extent that such amount—
(1) is properly taken into account as an adjustment to basis of property, or
(2) is attributable to personal, living, or family items.
**(c) Treatment of certain nonqualified written notices of allocation and certain nonqualified per-unit retain certificates**
(1) **Application of subsection** — This subsection shall apply to—
(A) any nonqualified written notice of allocation which—
(i) was paid as a patronage dividend, or
(ii) was paid by an organization described in section 1381(a)(1) on a patronage basis with respect to earnings derived from business or sources described in section 1382(c)(2)(A), and
(B) any nonqualified per-unit retain certificate which was paid as a per-unit retain allocation.
(2) **Basis; amount of gain** — In the case of any nonqualified written notice of allocation or nonqualified per-unit retain certificate to which this subsection applies, for purposes of this chapter—
(A) the basis of such written notice of allocation or per-unit retain certificate in the hands of the patron to whom such written notice of allocation or per-unit retain certificate was paid shall be zero,
(B) the basis of such written notice of allocation or per-unit retain certificate which was acquired from a decedent shall be its basis in the hands of the decedent, and
(C) gain on the redemption, sale, or other disposition of such written notice of allocation or per-unit retain certificate by any person shall, to the extent that the stated dollar amount of such written notice of allocation or per-unit retain certificate exceeds its basis, be considered as ordinary income.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** This part shall apply to—
(1) any organization exempt from tax under section 521 (relating to exemption of farmers’ cooperatives from tax), and
(2) any corporation operating on a cooperative basis other than an organization—
(A) which is exempt from tax under this chapter,
(B) which is subject to the provisions of—
(i) part II of subchapter H (relating to mutual savings banks, etc.), or
(ii) subchapter L (relating to insurance companies), or
(C) which is engaged in furnishing electric energy, or providing telephone service, to persons in rural areas.
**(b) Tax on certain farmers’ cooperatives** An organization described in subsection (a)(1) shall be subject to the tax imposed by section 11.
**(c) Cross reference** For treatment of income from load loss transactions of organizations described in subsection (a)(2)(C), see section 501(c)(12)(H).
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1381
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Gross income** Except as provided in subsection (b), the gross income of any organization to which this part applies shall be determined without any adjustment (as a reduction in gross receipts, an increase in cost of goods sold, or otherwise) by reason of any allocation or distribution to a patron out of the net earnings of such organization or by reason of any amount paid to a patron as a per-unit retain allocation (as defined in section 1388(f)).
**(b) Patronage dividends and per-unit retain allocations** In determining the taxable income of an organization to which this part applies, there shall not be taken into account amounts paid during the payment period for the taxable year—
(1) as patronage dividends (as defined in section 1388(a)), to the extent paid in money, qualified written notices of allocation (as defined in section 1388(c)), or other property (except nonqualified written notices of allocation (as defined in section 1388(d))) with respect to patronage occurring during such taxable year;
(2) in money or other property (except written notices of allocation) in redemption of a nonqualified written notice of allocation which was paid as a patronage dividend during the payment period for the taxable year during which the patronage occurred;
(3) as per-unit retain allocations (as defined in section 1388(f)), to the extent paid in money, qualified per-unit retain certificates (as defined in section 1388(h)), or other property (except nonqualified per-unit retain certificates, as defined in section 1388(i)) with respect to marketing occurring during such taxable year; or
(4) in money or other property (except per-unit retain certificates) in redemption of a nonqualified per-unit retain certificate which was paid as a per-unit retain allocation durin
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1382
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definition of surviving spouse**
(1) **In general** — For purposes of section 1, the term “surviving spouse” means a taxpayer—
(A) whose spouse died during either of his two taxable years immediately preceding the taxable year, and
(B) who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent (i) who (within the meaning of section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer, and (ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151.
(2) **Limitations** — Notwithstanding paragraph (1), for purposes of section 1 a taxpayer shall not be considered to be a surviving spouse—
(A) if the taxpayer has remarried at any time before the close of the taxable year, or
(B) unless, for the taxpayer’s taxable year during which his spouse died, a joint return could have been made under the provisions of section 6013 (without regard to subsection (a)(3) thereof).
(3) **Special rule where deceased spouse was in missing status** — If an individual was in a missing status (within the meaning of section 6013(f)(3)) as a result of service in a combat zone (as determined for purposes of section 112) and if such individual remains in such status until the date referred to in subparagraph (A) or (B), then, for purposes of paragraph (1)(A), the date on which such individual died shall be treated as the earlier of the date determined under subparagraph (A) or the date determined under subparagraph (B):
(A) the date on which the determination is made under [section 556 of title 37](https://uscode.house.gov/view.xhtml?req=granuleid:
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2
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Federal law — U.S. Code and appendices · legal_authorities
Page 2472
TITLE 26—INTERNAL REVENUE CODE
§ 1383
§ 1383. Computation of tax where cooperative re-
deems nonqualified written notices of alloca-
tion or nonqualified per-unit retain certifi-
cates
(a) General rule
If, under section 1382(b)(2) or (4), or (c)(2)(B), a
deduction is allowable to an organization for the
taxable year for amounts paid in redemption of
nonqualified written notices of allocation or
nonqualified per-unit retain certificates, then
the tax imposed by this chapter on such organi-
zation for the taxable year shall be the lesser of
the following:
(1) the tax for the taxable year computed
with such deduction; or
(2) an amount equal to—
(A) the tax for the taxable year computed
without such deduction, minus
(B) the decrease in tax under this chapter
for any prior taxable year (or years) which
would result solely from treating such non-
qualified written notices of allocation or
nonqualified per-unit retain certificates as
qualified written notices of allocation or
qualified per-unit retain certificates (as the
case may be).
(b) Special rules
(1) If the decrease in tax ascertained under
subsection (a)(2)(B) exceeds the tax for the tax-
able year (computed without the deduction de-
scribed in subsection (a)) such excess shall be
considered to be a payment of tax on the last
day prescribed by law for the payment of tax for
the taxable year, and shall be refunded or cred-
ited in the same manner as if it were an over-
payment for such taxable year.
(2) For purposes of determining the decrease in
tax under subsection (a)(2)(B), the stated dollar
amount of any nonqualified written notice of al-
location or nonqualified per-unit retain certifi-
cate which is to be treated under such sub-
section as a qualified written notice of alloca
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1385
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