---
kind: "section"
citation: "46 U.S.C. § 53307"
title: "46"
title_heading: "Shipping"
number: "53307"
heading: "Basis for determining gain or loss and for depreciating new vessels"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53307"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 533 — Construction Reserve Funds"
---

# §53307. Basis for determining gain or loss and for depreciating new vessels


Under the income or excess profits tax laws of the [United States](/usc/46/53101.md?p=10), the basis for determining a gain or loss and for depreciation of a [new vessel](/usc/46/53301.md?p=a-2) constructed, reconstructed, reconditioned, or acquired by the taxpayer, or for which purchase-money indebtedness is liquidated as provided in [section 53310 of this title](/usc/46/53310.md), with amounts from a [construction](/usc/46/53701.md?p=3) reserve fund, shall be reduced by that part of the deposits in the fund expended in the [construction](/usc/46/53701.md?p=3), [reconstruction](/usc/46/53701.md?p=3), [reconditioning](/usc/46/53701.md?p=3), acquisition, or liquidation of purchase-money indebtedness of the [new vessel](/usc/46/53301.md?p=a-2) that represents a gain not recognized for tax purposes under [section 53306 of this title](/usc/46/53306.md).


## Source credit

(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1589.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 53307 | 46 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. |