§383 — Special limitations on certain excess credits, etc.
3 cases·2 followed·1 cited—67% support
Statute Text — 26 U.S.C. §383
Under regulations, if an ownership change occurs with respect to a corporation, the amount of any excess credit for any taxable year which may be used in any post-change year shall be limited to an amount determined on the basis of the tax liability which is attributable to so much of the taxable income as does not exceed the section 382 limitation for such post-change year to the extent available after the application of section 382 and subsections (b) and (c) of this section.
For purposes of paragraph (1), the term “excess credit” means—
any unused general business credit of the corporation under section 39, and
any unused minimum tax credit of the corporation under section 53.
If an ownership change occurs with respect to a corporation, the amount of any net capital loss under section 1212 for any taxable year before the 1st post-change year which may be used in any post-change year shall be limited under regulations which shall be based on the principles applicable under section 382. Such regulations shall provide that any such net capital loss used in a post-change year shall reduce the section 382 limitation which is applied to pre-change losses under section 382 for such year.
If an ownership change occurs with respect to a corporation, the amount of any excess foreign taxes under section 904(c) for any taxable year before the 1st post-change taxable year shall be limited under regulations which shall be consistent with purposes of this section and section 382.
For purposes of this section, rules similar to the rules of subsections (b)(3) and (d)(1)(B) of section 382 shall apply.
Terms used in this section shall have the same respective meanings as when used in section 382, except that appropriate adjustments shall be made to take into account that the limitations of this section apply to credits and net capital losses.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.383-0 Effective date
- Treas. Reg. §Treas. Reg. §1.383-0(a) The regulations in this part under section 383 of the Code (other than the regulations described in paragraph (b) of this section) reflect the amendments made to sections 382 and 383 by the Tax Reform Act of 1986 and the amendments made to section 382 by Public Law 115-97 (2017).
- Treas. Reg. §Treas. Reg. §1.383-0(b) Sections 1.
- Treas. Reg. §Treas. Reg. §1.383-1 Special limitations on certain capital losses and excess credits
- Treas. Reg. §Treas. Reg. §1.383-1(a) Outline of topics.
- Treas. Reg. §Treas. Reg. §1.383-1(b) In general.
- Treas. Reg. §Treas. Reg. §1.383-1(c) Definitions—(1) Coordination with definitions and nomenclature used in section 382.
- Treas. Reg. §Treas. Reg. §1.383-1(d) Limitation on use of pre-change losses and pre-change credits—(1) In general—(i) General rule.
- Treas. Reg. §Treas. Reg. §1.383-1(e) Carryforward of unused section 382 limitation—(1) Computation of carryforward amount.
- Treas. Reg. §Treas. Reg. §1.383-1(f) Examples.
- Treas. Reg. §Treas. Reg. §1.383-1(g) Coordination with section 382 and the regulations thereunder.
- Treas. Reg. §Treas. Reg. §1.383-1(h) Alternative minimum tax.
- Treas. Reg. §Treas. Reg. §1.383-1(i) §1.383-1(i)
- Treas. Reg. §Treas. Reg. §1.383-1(j) Applicability date—(1) In general.
- Treas. Reg. §Treas. Reg. §1.383-1(v) §1.383-1(v)
3 Citing Cases
tached exhibits are 1 References to secs. 382 and 383 and the regulations thereunder are to the Internal Revenue Code and applicable regulations in effect on Dec. 31, 1986. 2 Respondent has determined penalties only with respect to the sec. 382 and sec. 383 issues. - 3 - incorporated herein by this reference. At the time the petition was filed, Samson's principal place of business was located in Tulsa, Oklahoma. On December 31, 1986, Samson acquired all the stock of CDC (the change of ownership)