§53508 — Title 46 Shipping | U.S. Code

Summary

A capital construction fund must keep three separate accounts: a capital account, a capital gain account, and an ordinary income account. The capital account includes certain original contributions, tax-free interest, and a specified part of dividends. The capital gain account records gains from assets held more than 6 months minus long-term losses. The ordinary income account holds short-term gains (assets held 6 months or less) minus short-term losses, regular interest and other ordinary earnings, and the rest of dividends not in the capital account. Except when the fund ends, long- or short-term losses can only offset gains in their same account.

Title 46, §53508

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(a)A capital construction fund shall have three accounts:

(1)The capital account.

(2)The capital gain account.

(3)The ordinary income account.

(b)The capital account shall consist of—

(1)amounts referred to in section 53505(a)(2) of this title;

(2)amounts referred to in section 53505(a)(3) of this title, except that portion representing a gain not taken into account because of section 53507(a)(2) of this title;

(3)the percentage applicable under section 243(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. 243(a)(1)) of any dividend received by the fund for which the person maintaining the fund would be allowed (were it not for section 53507(a)(3) of this title) a deduction under section 243 of such Code (26 U.S.C. 243); and

(4)interest income exempt from taxation under section 103 of such Code (26 U.S.C. 103).

(c)The capital gain account shall consist of—

(1)amounts representing capital gains on assets held for more than 6 months and referred to in section 53505(a)(3) or (4) of this title; minus

(2)amounts representing capital losses on assets held in the fund for more than 6 months.

(d)The ordinary income account shall consist of—

(1)amounts referred to in section 53505(a)(1) of this title;

(2)(A)amounts representing capital gains on assets held for not more than 6 months and referred to in section 53505(a)(3) or (4) of this title; minus

(B)amounts representing capital losses on assets held in the fund for not more than 6 months;

(3)interest (except tax-exempt interest referred to in subsection (b)(4)) and other ordinary income (except any dividend referred to in paragraph (5)) received on assets held in the fund;

(4)ordinary income from a transaction described in section 53505(a)(3) of this title; and

(5)that portion of any dividend referred to in subsection (b)(3) not taken into account under subsection (b)(3).

(e)Except on termination of a fund, capital losses referred to in subsection (c) or (d)(2) shall be allowed only as an offset to gains referred to in subsection (c) or (d)(2), respectively.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5350846 App.:1177(e).June 29, 1936, ch. 858, title VI, § 607(e), 49 Stat. 2005; June 23, 1938, ch. 600, §§ 23–28, 52 Stat. 960; Aug. 4, 1939, ch. 417, § 10, 53 Stat. 1185; July 17, 1952, ch. 939, §§ 17–19, 66 Stat. 764; Pub. L. 85–637, Aug. 14, 1958, 72 Stat. 216; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–45, § 6, May 27, 1961, 75 Stat. 91; Pub. L. 87–271, Sept. 21, 1961, 75 Stat. 570; restated Pub. L. 91–469, § 21(a), Oct. 21, 1970, 84 Stat. 1028; Pub. L. 99–514, title II, § 261(e)(3), (4), Oct. 22, 1986, 100 Stat. 2215.

§53508 Separate accounts within a fund

Summary

Title 46, §53508

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata