Editorial Notes
References in Text
Section 4 of the Securities Act of 1933, referred to in subsec. (c)(2)(B)(i)(I), is classified to section 77d of Title 15, Commerce and Trade.
Amendments
2017—Subsec. (g). Pub. L. 115–97 added subsec. (g).
2000—Subsec. (f). Pub. L. 106–554 substituted “the second sentence” for “the last sentence”.
1998—Subsec. (b)(3). Pub. L. 105–277 substituted “for casualty or theft losses described in paragraph (2) or (3) of section 165(c) or for losses described in section 165(d)” for “for losses described in subsection (c)(3) or (d) of section 165”.
1993—Subsec. (b)(6) to (13). Pub. L. 103–66 redesignated pars. (7) to (13) as (6) to (12), respectively, and struck out former par. (6) which read as follows: “the deduction under section 217 (relating to moving expenses),”.
1989—Subsec. (c)(4). Pub. L. 101–239 struck out par. (4) which read as follows: “Termination.—This subsection shall not apply to any taxable year beginning after December 31, 1989.”
1988—Subsec. (b)(4). Pub. L. 100–647, § 1001(f)(2), substituted “deductions” for “deduction” and inserted before comma at end “and section 642(c) (relating to deduction for amounts paid or permanently set aside for a charitable purpose)”.
Subsec. (c). Pub. L. 100–647, § 4011(a), amended subsec. (c) generally. Prior to amendment subsec. (c) read as follows: “The Secretary shall prescribe regulations which prohibit the indirect deduction through pass-thru entities of amounts which are not allowable as a deduction if paid or incurred directly by an individual and which contain such reporting requirements as may be necessary to carry out the purposes of this subsection. The preceding sentence shall not apply—
“(1) with respect to cooperatives and real estate investment trusts, and
“(2) except as provided in regulations, with respect to estates and trusts.”
Pub. L. 100–647, § 1001(f)(4), amended last sentence generally. Prior to amendment, last sentence read as follows: “The preceding sentence shall not apply with respect to estates, trusts, cooperatives, and real estate investment trusts.”
Subsec. (e). Pub. L. 100–647, § 1001(f)(3), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “For purposes of this section, the adjusted gross income of an estate or trust shall be computed in the same manner as in the case of an individual, except that the deductions for costs which are paid or incurred in connection with the administration of the estate or trust and would not have been incurred if the property were not held in such trust or estate shall be treated as allowable in arriving at adjusted gross income.”
Subsec. (f). Pub. L. 100–647, § 1001(f)(1), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Pub. L. 115–97, title I, § 11045(b), Dec. 22, 2017, 131 Stat. 2088, provided that:
“The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2017.”
Effective Date of 1998 Amendment
Pub. L. 105–277, div. J, title IV, § 4004(c)(2), Oct. 21, 1998, 112 Stat. 2681–911, provided that:
“The amendment made by subsection (b)(1) [amending this section] shall apply to taxable years beginning after December 31, 1986.”
Effective Date of 1993 Amendment
Amendment by Pub. L. 103–66 applicable to expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103–66 set out as a note under section 62 of this title.
Effective Date of 1989 Amendment
Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title.
Effective Date of 1988 Amendment
Amendment by section 1001(f) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Pub. L. 100–647, title IV, § 4011(b), Nov. 10, 1988, 102 Stat. 3656, provided that:
“The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1987.”
Effective Date
Section applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99–514, set out as an Effective Date of 1986 Amendment note under section 1 of this title.
1-Year Delay in Treatment of Publicly Offered Regulated Investment Companies Under 2-Percent Floor
Pub. L. 100–203, title X, § 10104(a), Dec. 22, 1987, 101 Stat. 1330–386, provided that:
“(1) General rule.—
Section 67(c) of the Internal Revenue Code of 1986 to the extent it relates to indirect deductions through a publicly offered regulated investment company shall apply only to taxable years beginning after December 31, 1987.
“(2) Publicly offered regulated investment company defined.—For purposes of this subsection—
“(A) In general.—The term ‘publicly offered regulated investment company’ means a regulated investment company the shares of which are—
“(i)
continuously offered pursuant to a public offering (within the meaning of section 4 of the Securities Act of 1933, as amended (15 U.S.C. 77a to 77aa) [15 U.S.C. 77d]),
“(ii)
regularly traded on an established securities market, or
“(iii)
held by or for no fewer than 500 persons at all times during the taxable year.
“(B) Secretary may reduce 500 person requirement.—
The Secretary of the Treasury or his delegate may by regulation decrease the minimum shareholder requirement of subparagraph (A)(iii) in the case of regulated investment companies which experience a loss of shareholders through net redemptions of their shares.”
As an expert in tax law and legislative amendments, I can confidently dissect the intricacies of the provided information related to the Internal Revenue Code and specifically Section 642. My understanding extends beyond mere familiarity, as I can provide a comprehensive analysis of the amendments made over the years.
The text primarily discusses modifications to Section 642, a part of the Internal Revenue Code, with reference to specific subsections and paragraphs. To break down the information:
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Amendments in 2017 (Subsec. (g)):
- The addition of Subsection (g) was introduced by Pub. L. 115–97 in 2017. This amendment is applicable to taxable years beginning after December 31, 2017.
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Amendments in 2000 (Subsec. (f)):
- In 2000, Pub. L. 106–554 modified Subsection (f) by substituting “the second sentence” for “the last sentence.”
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Amendments in 1998 (Subsec. (b)(3)):
- Pub. L. 105–277, in 1998, substituted language related to casualty or theft losses in Subsection (b)(3). The effective date for this amendment is taxable years beginning after December 31, 1986.
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Amendments in 1993 (Subsec. (b)(6) to (13)):
- In 1993, Pub. L. 103–66 redesignated paragraphs (7) to (13) as (6) to (12), respectively, and eliminated former paragraph (6) related to moving expenses.
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Amendments in 1989 (Subsec. (c)(4)):
- Pub. L. 101–239, in 1989, struck out paragraph (4) related to termination in Subsection (c)(4).
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Amendments in 1988 (Subsec. (b)(4), Subsec. (c), Subsec. (e)):
- In 1988, several amendments were made, including changes to Subsection (b)(4) by substituting “deductions” for “deduction” and inserting language related to charitable purposes. Subsection (c) and (e) were also amended, with modifications to reporting requirements and the computation of adjusted gross income for estates or trusts.
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Effective Dates of Amendments:
- The effective dates vary for each amendment, and it is crucial to note the specific dates mentioned for applicability.
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1-Year Delay in Treatment of Publicly Offered Regulated Investment Companies Under 2-Percent Floor:
- Pub. L. 100–203 in 1987 introduced a 1-year delay in the treatment of publicly offered regulated investment companies under the 2-percent floor, specifying conditions for application.
In conclusion, the provided information outlines amendments made to Section 642 of the Internal Revenue Code, offering a glimpse into the evolution of tax regulations over the years. If you have any specific questions or need further clarification on any aspect, feel free to ask.
