§53508 Separate Accounts Within a Fund

Summary

Require a capital construction fund to keep three separate accounts. The capital account holds certain long-term contributions and gains (but not any gains excluded under 53507(a)(2)), plus the percentage of dividends allowed under 26 U.S.C. 243(a)(1) and interest that is tax‑exempt under 26 U.S.C. 103. The capital gain account holds capital gains from assets owned more than 6 months minus capital losses on assets owned more than 6 months. The ordinary income account holds amounts like those in 53505(a)(1), short‑term gains (assets held not more than 6 months) minus short‑term losses, ordinary interest and other regular income (except the tax‑exempt interest above), ordinary income from certain transactions, and the part of dividends not put in the capital account. Capital losses for long‑term or short‑term assets can only offset gains in the same account, unless the fund is ended.