Title 46, ShippingRelease 119-102
§53307 Basis for Determining Gain or Loss and for Depreciating New Vessels
Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 533 — CONSTRUCTION RESERVE FUNDS › § 53307
Summary
When a taxpayer uses money from a construction reserve fund to build, rebuild, repair, or buy a new vessel—or to pay off the purchase loan under section 53310—the tax basis used to figure gain or loss and to compute depreciation must be lowered. The amount to lower it by is the portion of the fund deposits spent on the vessel that came from gains not taxed under section 53306.
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
Aug 21, 2026
Release point: 119-102