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26 U.S.C. § 58 — Denial of certain losses
Federal law — U.S. Code and appendices · legal_authorities
**(a) Denial of farm loss**
(1) **In general** — For purposes of computing the amount of the alternative minimum taxable income for any taxable year of a taxpayer other than a corporation—
(A) *Disallowance of farm loss* — No loss of the taxpayer for such taxable year from any tax shelter farm activity shall be allowed.
(B) *Deduction in succeeding taxable year* — Any loss from a tax shelter farm activity disallowed under subparagraph (A) shall be treated as a deduction allocable to such activity in the 1st succeeding taxable year.
(2) **Tax shelter farm activity** — For purposes of this subsection, the term “tax shelter farm activity” means—
(A) any farming syndicate as defined in section 461(k), and
(B) any other activity consisting of farming which is a passive activity (within the meaning of section 469(c)).
(3) **Determination of loss** — In determining the amount of the loss from any tax shelter farm activity, the adjustments of sections 56 and 57 shall apply.
**(b) Disallowance of passive activity loss** In computing the alternative minimum taxable income of the taxpayer for any taxable year, section 469 shall apply, except that in applying section 469—
(1) the adjustments of sections 56 and 57 shall apply, and
(2) in lieu of applying section 469(j)(7), the passive activity loss of a taxpayer shall be computed without regard to qualified housing interest (as defined in section 56(e)).
**(c) Special rules** For purposes of this section—
(1) **Special rule for insolvent taxpayers**
(A) *In general* — The amount of losses to which subsection (a) or (b) applies shall be reduced by the amount (if any) by which the taxpayer is insolvent as of the close of the taxable year.
(B) *Insolvent* — For purposes of this paragraph, the term “insolvent”
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Source file: Laws/federal/codes/united-states-code/title-26/section-58-denial-of-certain-losses--3cb12ebf7a.md
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Source location: Title 26, Chapter 1, § 58; chapter-001-normal-taxes-and-surtaxes.md
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**(a) Denial of farm loss**
(1) **In general** — For purposes of computing the amount of the alternative minimum taxable income for any taxable year of a taxpayer other than a corporation—
(A) *Disallowance of farm loss* — No loss of the taxpayer for such taxable year from any tax shelter farm activity shall be allowed.
(B) *Deduction in succeeding taxable year* — Any loss from a tax shelter farm activity disallowed under subparagraph (A) shall be treated as a deduction allocable to such activity in the 1st succeeding taxable year.
(2) **Tax shelter farm activity** — For purposes of this subsection, the term “tax shelter farm activity” means—
(A) any farming syndicate as defined in section 461(k), and
(B) any other activity consisting of farming which is a passive activity (within the meaning of section 469(c)).
(3) **Determination of loss** — In determining the amount of the loss from any tax shelter farm activity, the adjustments of sections 56 and 57 shall apply.
**(b) Disallowance of passive activity loss** In computing the alternative minimum taxable income of the taxpayer for any taxable year, section 469 shall apply, except that in applying section 469—
(1) the adjustments of sections 56 and 57 shall apply, and
(2) in lieu of applying section 469(j)(7), the passive activity loss of a taxpayer shall be computed without regard to qualified housing interest (as defined in section 56(e)).
**(c) Special rules** For purposes of this section—
(1) **Special rule for insolvent taxpayers**
(A) *In general* — The amount of losses to which subsection (a) or (b) applies shall be reduced by the amount (if any) by which the taxpayer is insolvent as of the close of the taxable year.
(B) *Insolvent* — For purposes of this paragraph, the term “insolvent” means the excess of liabilities over the fair market value of assets.
(2) **Loss allowed for year of disposition of farm shelter activity** — If the taxpayer disposes of his entire interest in any tax shelter farm activity during any taxable year, the amount of the loss attributable to such activity (determined after carryovers under subsection (a)(1)(B)) shall (to the extent otherwise allowable) be allowed for such taxable year in computing alternative minimum taxable income and not treated as a loss from a tax shelter farm activity.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Gross income from sources within United States** The following items of gross income shall be treated as income from sources within the United States:
(1) **Interest** — Interest from the United States or the District of Columbia, and interest on bonds, notes, or other interest-bearing obligations of noncorporate residents or domestic corporations not including—
(A) interest—
(i) on deposits with a foreign branch of a domestic corporation or a domestic partnership if such branch is engaged in the commercial banking business, and
(ii) on amounts satisfying the requirements of subparagraph (B) of section 871(i)(3) which are paid by a foreign branch of a domestic corporation or a domestic partnership, and
(B) in the case of a foreign partnership, which is predominantly engaged in the active conduct of a trade or business outside the United States, any interest not paid by a trade or business engaged in by the partnership in the United States and not allocable to income which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States.
(2) **Dividends** — The amount received as dividends—
(A) from a domestic corporation, or
(B) from a foreign corporation unless less than 25 percent of the gross income from all sources of such foreign corporation for the 3-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the corporation has been in existence) was effectively connected (or treated as effectively connected other than income described in section 884(d)(2)) with the conduct of a trade or business within the United States; but only in an amount which bears the same ratio to such dividends as the gross in
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 861
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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
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Corporations in general** A tax is hereby imposed for each taxable year on the taxable income of every corporation.
**(b) Amount of tax** The amount of the tax imposed by subsection (a) shall be 21 percent of taxable income.
**(c) Exceptions** Subsection (a) shall not apply to a corporation subject to a tax imposed by—
(1) section 594 (relating to mutual savings banks conducting life insurance business),
(2) subchapter L (sec. 801 and following, relating to insurance companies), or
(3) subchapter M (sec. 851 and following, relating to regulated investment companies and real estate investment trusts).
**(d) Foreign corporations** In the case of a foreign corporation, the taxes imposed by subsection (a) and section 55 shall apply only as provided by section 882.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 11
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** There is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of—
(1) the tentative minimum tax for the taxable year, over
(2) the regular tax for the taxable year plus, in the case of an applicable corporation, the tax imposed by section 59A.
**(b) Tentative minimum tax** For purposes of this part—
(1) **Noncorporate taxpayers** — In the case of a taxpayer other than a corporation—
(A) *In general* — The tentative minimum tax for the taxable year is the sum of—
(i) 26 percent of so much of the taxable excess as does not exceed $175,000, plus
(ii) 28 percent of so much of the taxable excess as exceeds $175,000.
The amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year.
(B) *Taxable excess* — For purposes of this subsection, the term “taxable excess” means so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount.
(C) *Married individual filing separate return* — In the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting 50 percent of the dollar amount otherwise applicable under clause (i) and clause (ii) thereof. For purposes of the preceding sentence, marital status shall be determined under section 7703.
(D) *Alternative minimum taxable income* — The term “alternative minimum taxable income” means the taxable income of the taxpayer for the taxable year—
(i) determined with the adjustments provided in section 56 and section 58, and
(ii) increased by the amount of the items of tax preference described in section 57.
If a taxpayer is subject to the regular tax, such taxpayer shal
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 55
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Disallowance**
(1) **In general** — If for any taxable year the taxpayer is described in paragraph (2), neither—
(A) the passive activity loss, nor
(B) the passive activity credit,
for the taxable year shall be allowed.
(2) **Persons described** — The following are described in this paragraph:
(A) any individual, estate, or trust,
(B) any closely held C corporation, and
(C) any personal service corporation.
**(b) Disallowed loss or credit carried to next year** Except as otherwise provided in this section, any loss or credit from an activity which is disallowed under subsection (a) shall be treated as a deduction or credit allocable to such activity in the next taxable year.
**(c) Passive activity defined** For purposes of this section—
(1) **In general** — The term “passive activity” means any activity—
(A) which involves the conduct of any trade or business, and
(B) in which the taxpayer does not materially participate.
(2) **Passive activity includes any rental activity** — Except as provided in paragraph (7), the term “passive activity” includes any rental activity.
(3) **Working interests in oil and gas property**
(A) *In general* — The term “passive activity” shall not include any working interest in any oil or gas property which the taxpayer holds directly or through an entity which does not limit the liability of the taxpayer with respect to such interest.
(B) *Income in subsequent years* — If any taxpayer has any loss for any taxable year from a working interest in any oil or gas property which is treated as a loss which is not from a passive activity, then any net income from such property (or any property the basis of which is determined in whole or in part by reference to the basis of such property) for any succeedin
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 469
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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
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 163
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Federal law — U.S. Code and appendices · legal_authorities
Page 431
TITLE 26—INTERNAL REVENUE CODE
§ 58
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1007(b)(14)(B) of Pub. L.
100–647 applicable with respect to options exercised
after Dec. 31, 1987, see section 1007(b)(14)(C) of Pub. L.
100–647, set out as a note under section 56 of this title.
Amendment by section 1007(c) of Pub. L. 100–647 effec-
tive, except as otherwise provided, as if included in the
provision of the Tax Reform Act of 1986, Pub. L. 99–514,
to which such amendment relates, see section 1019(a) of
Pub. L. 100–647, set out as a note under section 1 of this
title.
EFFECTIVE DATE
Section applicable to taxable years beginning after
Dec. 31, 1986, with certain exceptions and qualifica-
tions, but subsec. (a)(6) not to apply to any deduction
attributable to contributions made before Aug. 16, 1986,
see section 701(f) of Pub. L. 99–514, set out as a note
under section 55 of this title.
SAVINGS PROVISION
For provisions that nothing in amendment by sec-
tions 11801 and 11815 of Pub. L. 101–508 be construed to
affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction,
or credit taken into account prior to Nov. 5, 1990, for
purposes of determining liability for tax for periods
ending after Nov. 5, 1990, see section 11821(b) of Pub. L.
101–508, set out as a note under section 45K of this title.
TRANSITIONAL PROVISIONS
Pub. L. 100–647, title I, § 1007(f)(4), Nov. 10, 1988, 102
Stat. 3433, provided that:
‘‘(A) If any property to which this paragraph applies
is placed in service in a taxable year which begins be-
fore January 1, 1987, and ends on or after August 1, 1986,
the item of tax preference determined under section
57(a) of the Internal Revenue Code of 1954 (as in effect
on the day
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 58
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