26 U.S.C. § 270 — Untitled legal text

Page 1029 TITLE 26—INTERNAL REVENUE CODE § 271 rule similar to the rule of subsection (c)(3) shall apply for purposes of this subsection. ‘‘(7) COORDINATION WITH SUBSECTION (a).—This sub- section shall not apply to the portion of any interest in real property that the exempt REIT or stapled en- tity holds or is treated as holding under this section without regard to this subsection. ‘‘(e) DEFINITIONS.—For purposes of this section— ‘‘(1) REIT GROSS INCOME PROVISIONS.—The term ‘REIT gross income provisions’ means— ‘‘(A) paragraphs (2), (3), and (6) of section 856(c) of the Internal Revenue Code of 1986; and ‘‘(B) section 857(b)(5) of such Code. ‘‘(2) EXEMPT REIT.—The term ‘exempt REIT’ means a real estate investment trust to which section 269B of the Internal Revenue Code of 1986 does not apply by reason of paragraph (3) of section 136(c) of the Tax Reform Act of 1984. ‘‘(3) STAPLED REIT GROUP.—The term ‘stapled REIT group’ means, with respect to an exempt REIT, the group consisting of— ‘‘(A) all entities which are stapled entities with respect to the exempt REIT; and ‘‘(B) all entities which are 10-percent subsidiary entities of the exempt REIT or any such stapled en- tity. ‘‘(4) 10-PERCENT SUBSIDIARY ENTITY.— ‘‘(A) IN GENERAL.—The term ‘10-percent sub- sidiary entity’ means, with respect to any exempt REIT or stapled entity, any entity in which the ex- empt REIT or stapled entity (as the case may be) directly or indirectly holds at least a 10-percent in- terest. ‘‘(B) EXCEPTION FOR CERTAIN C CORPORATION SUB- SIDIARIES OF REITS.—A corporation which would, but for this subparagraph, be treated as a 10-per- cent subsidiary of an exempt REIT shall not be so treated if such corporation is taxable under section 11 of the Internal Revenue Code of 1986. ‘‘(C) 10-PERCENT INTEREST.—The term ‘10-percent interest’ means— ‘‘(i) in the case of an interest in a corporation, ownership of 10 percent (by vote or value) of the stock in such corporation; ‘‘(ii) in the case of an interest in a partnership, ownership of 10 percent of the capital or profits interest in the partnership; and ‘‘(iii) in any other case, ownership of 10 percent of the beneficial interests in the entity. ‘‘(5) OTHER DEFINITIONS.—Terms used in this section which are used in section 269B or section 856 of such Code shall have the respective meanings given such terms by such section. ‘‘(f) GUIDANCE.—The Secretary may prescribe such guidance as may be necessary or appropriate to carry out the purposes of this section, including guidance to prevent the avoidance of such purposes and to prevent the double counting of income. ‘‘(g) EFFECTIVE DATE.—This section shall apply to taxable years ending after March 26, 1998.’’ 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. [§ 270. Repealed. Pub. L. 91–172, title II, § 213(b), Dec. 30, 1969, 83 Stat. 572] Section, act Aug. 16, 1954, ch. 736, 68A Stat. 81, related to the limitation on deductions allowable to certain in- dividuals. See section 183 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to taxable years beginning after Dec. 31, 1969, see section 213(d) of Pub. L. 91–172, set out as an Effective Date note under section 183 of this title. § 271. Debts owed by political parties, etc. (a) General rule In the case of a taxpayer (other than a bank as defined in section 581) no deduction shall be al- lowed under section 166 (relating to bad debts) or under section 165(g) (relating to worthless- ness of securities) by reason of the worthlessness of any debt owed by a political party. (b) Definitions (1) Political party For purposes of subsection (a), the term ‘‘po- litical party’’ means— (A) a political party; (B) a national, State, or local committee of a political party; or (C) a committee, association, or organiza- tion which accepts contributions or makes expenditures for the purpose of influencing or attempting to influence the election of presidential or vice-presidential electors or of any individual whose name is presented for election to any Federal, State, or local elective public office, whether or not such individual is elected. (2) Contributions For purposes of paragraph (1)(C), the term ‘‘contributions’’ includes a gift, subscription, loan, advance, or deposit, of money, or any- thing of value, and includes a contract, prom- ise, or agreement to make a contribution, whether or not legally enforceable. (3) Expenditures For purposes of paragraph (1)(C), the term ‘‘expenditures’’ includes a payment, distribu- tion, loan, advance, deposit, or gift, of money, or anything of value, and includes a contract, promise, or agreement to make an expendi- ture, whether or not legally enforceable. (c) Exception In the case of a taxpayer who uses an accrual method of accounting, subsection (a) shall not apply to a debt which accrued as a receivable on a bona fide sale of goods or services in the ordi- nary course of the taxpayer’s trade or business if— (1) for the taxable year in which such receiv- able accrued, more than 30 percent of all re- ceivables which accrued in the ordinary course of the trades and businesses of the taxpayer were due from political parties, and (2) the taxpayer made substantial con- tinuing efforts to collect on the debt. (Aug. 16, 1954, ch. 736, 68A Stat. 82; Pub. L. 94–455, title XXI, § 2104(a), Oct. 4, 1976, 90 Stat. 1901.) Editorial Notes AMENDMENTS 1976—Subsec. (c). Pub. L. 94–455 added subsec. (c).