§246. Rules applying to deductions for dividends received — Inbound Citations
26 U.S.C. § 246
Cited by 21 provisions in release 119-102.
Citations to 26 U.S.C. § 246 as a whole
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(i) Solely for purposes of sections 243, 245, 246, and 246A, the dividend equivalent portion of any amount includible in gross income of a corporation under section 1272(a) in respect of an applicable high yield discount obligation shall be treated as a dividend received by such corporation from the corporation issuing such obligation.
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(B) after the application of section 246 (but without regard to subsection (b) thereof), and
Citations to §246(a)(1)
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(A) is a worker described in section 246(a)(3)(B) of the Trade Act of 1974 who is participating in the program established under section 246(a)(1) of such Act, and
Citations to §246(a)(2)
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(B) is receiving a benefit for such month under section 246(a)(2) of such Act.
Citations to §246(b)
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(5) The deductions allowed by sections 243 (relating to dividends received by corporations) and 245 (relating to dividends received from certain foreign corporations) shall be computed without regard to section 246(b) (relating to limitation on aggregate amount of deductions).
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(B) In applying section 246(b) (relating to limitation on aggregate amount of deductions for dividends received) for purposes of subparagraph (A), the limit on the aggregate amount of the deductions allowed by sections 243(a)(1) and 245 shall be the percentage determined under section 246(b)(3) of the life insurance company taxable income (and such limitation shall be applied as provided in section 246(b)(3)), computed without regard to—(i) the deduction allowed under section 172,(iii) any capital loss carryback to the taxable year under section 1212(a)(1),but such limit shall not apply for any taxable year for which there is a loss from operations.
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(7) The special deductions allowed by part VIII (except section 248) of subchapter B (sec. 241 and following, relating to dividends received). In applying section 246(b) (relating to limitation on aggregate amount of deductions for dividends received) for purposes of this paragraph, the reference in such section to “taxable income” shall be treated as a reference to “taxable investment income”.
Citations to §246(b)(3)
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(B) In applying section 246(b) (relating to limitation on aggregate amount of deductions for dividends received) for purposes of subparagraph (A), the limit on the aggregate amount of the deductions allowed by sections 243(a)(1) and 245 shall be the percentage determined under section 246(b)(3) of the life insurance company taxable income (and such limitation shall be applied as provided in section 246(b)(3)), computed without regard to—(i) the deduction allowed under section 172,(iii) any capital loss carryback to the taxable year under section 1212(a)(1),but such limit shall not apply for any taxable year for which there is a loss from operations.
Citations to §246(c)
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(I) with respect to which the holding period requirements of section 246(c) are not met (determined by substituting in section 246(c) “60 days” for “45 days” each place it appears and by substituting “121-day period” for “91-day period”), or
Citations to §246(c)(3)
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(3) For purposes of determining the holding period of stock under subsection (a), rules similar to the rules of paragraphs (3) and (4) of section 246(c) shall apply and there shall not be taken into account any day which is more than 2 years after the date on which such share becomes ex-dividend.
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(E) Subparagraph (A) shall not apply to any straddle for purposes of section 1092(a) if—(i) the qualified covered call options referred to in such subparagraph are closed or the stock is disposed of at a loss during any taxable year,(ii) gain on disposition of the stock to be purchased from the taxpayer under such options or gains on such options are includible in gross income for a later taxable year, and(iii) such stock or option was not held by the taxpayer for 30 days or more after the closing of such options or the disposition of such stock.
Citations to §246(c)(4)
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(6) If a person’s holding period is reduced by reason of the application of the rules of section 246(c)(4) to any contract for the bona fide sale of stock, the determination of whether such person’s holding period meets the requirements of paragraph (2) with respect to taxes deemed paid under section 960 shall be made as of the date such contract is entered into.
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(3) For purposes of determining the holding period of stock under subsection (a), rules similar to the rules of paragraphs (3) and (4) of section 246(c) shall apply and there shall not be taken into account any day which is more than 2 years after the date on which such share becomes ex-dividend.
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(E) Subparagraph (A) shall not apply to any straddle for purposes of section 1092(a) if—(i) the qualified covered call options referred to in such subparagraph are closed or the stock is disposed of at a loss during any taxable year,(ii) gain on disposition of the stock to be purchased from the taxpayer under such options or gains on such options are includible in gross income for a later taxable year, and(iii) such stock or option was not held by the taxpayer for 30 days or more after the closing of such options or the disposition of such stock.
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(iii) at no time during such 60-day period is the taxpayer’s risk of loss with respect to such position reduced by reason of a circumstance which would be described in section 246(c)(4) if references to stock included references to such position.