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§53307 Basis for Determining Gain or Loss and for Depreciating New Vessels

Title 46 › Subtitle Subtitle V— Merchant Marine › Part C— Financial Assistance Programs › Chapter 533— CONSTRUCTION RESERVE FUNDS › § 53307

Last updated Apr 5, 2026|Official source

Summary

For federal income and excess profits tax purposes, the basis used to figure gain, loss, and depreciation for a new vessel must be reduced. The reduction is the part of construction reserve fund deposits spent on building, rebuilding, reconditioning, buying, or liquidating purchase‑money indebtedness for that vessel that represents gain not recognized for tax purposes under section 53306 (and includes liquidation allowed under section 53310).

Full Legal Text

Title 46, §53307

Shipping — Source: USLM XML via OLRC

Under the income or excess profits tax laws of the United States, the basis for determining a gain or loss and for depreciation of a new vessel constructed, reconstructed, reconditioned, or acquired by the taxpayer, or for which purchase-money indebtedness is liquidated as provided in section 53310 of this title, with amounts from a construction reserve fund, shall be reduced by that part of the deposits in the fund expended in the construction, reconstruction, reconditioning, acquisition, or liquidation of purchase-money indebtedness of the new vessel that represents a gain not recognized for tax purposes under section 53306 of this title.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5330746 App.:1161(d).June 29, 1936, ch. 858, title V, § 511(d), as added Oct. 10, 1940, ch. 849, 54 Stat. 1106; July 17, 1952, ch. 939, § 11, 66 Stat. 763.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53307

Title 46 — Shipping

Last Updated

Apr 5, 2026

Release point: 119-73not60