§53306. Recognition of gain for tax purposes — Inbound Citations

Citations to 46 U.S.C. § 53306 as a whole

• 46 U.S.C. § 53307

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  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.
• 46 U.S.C. § 53308(3)

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  (3) if a deposit consists in part of a gain not recognized under section 53306 of this title, any expenditure, obligation, or withdrawal applied against that deposit shall be deemed to be a gain in the proportion that the part of the deposit consisting of a gain bears to the total amount of the deposit.
• 46 U.S.C. § 53310(a)

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  (a) Sections 53306 and 53309 of this title apply to a deposit in a construction reserve fund only if, within 3 years after the date of the deposit (and any extension under subsection (c))—

  (A) a contract is made for the construction or acquisition of a new vessel or, with the approval of the Secretary of Transportation, for a part interest in a new vessel or for the reconstruction or reconditioning of a new vessel;

  (B) the deposit is expended or obligated for expenditure under that contract;

  (C) at least 12.5 percent of the construction or contract price of the vessel is paid or irrevocably committed for payment; and

  (D) the plans and specifications for the vessel are approved by the Secretary to the extent the Secretary considers necessary; or

  (2) the deposit is expended or obligated for expenditure for the liquidation of existing or subsequently incurred purchase-money indebtedness to a person not a parent company of, or a company affiliated or associated with, the mortgagor on a new vessel.