§597 — Treatment of transactions in which Federal financial assistance provided

4 cases·1 overruled·3 cited

(a)General rule

The treatment for purposes of this chapter of any transaction in which Federal financial assistance is provided with respect to a bank or domestic building and loan association shall be determined under regulations prescribed by the Secretary.

(b)Principles used in prescribing regulations
(1)Treatment of taxable asset acquisitions

In the case of any acquisition of assets to which section 381(a) does not apply, the regulations prescribed under subsection (a) shall—

(A)

provide that Federal financial assistance shall be properly taken into account by the institution from which the assets were acquired, and

(B)

provide the proper method of allocating basis among the assets so acquired (including rights to receive Federal financial assistance).

(2)Other transactions

In the case of any transaction not described in paragraph (1), the regulations prescribed under subsection (a) shall provide for the proper treatment of Federal financial assistance and appropriate adjustments to basis or other tax attributes in connection with such assistance.

(3)Denial of double benefit

No regulations prescribed under this section shall permit the utilization of any deduction (or other tax benefit) if such amount was in effect reimbursed by nontaxable Federal financial assistance.

(c)Federal financial assistance

For purposes of this section, the term “Federal financial assistance” means—

(1)

any money or other property provided with respect to a domestic building and loan association by the Federal Savings and Loan Insurance Corporation or the Resolution Trust Corporation pursuant to section 406(f) of the National Housing Act (or under any other similar provision of law), and

(2)

any money or other property provided with respect to a bank or domestic building and loan association by the Federal Deposit Insurance Corporation pursuant to section 11(f) or 13(c) of the Federal Deposit Insurance Act (or under any other similar provision of law),

regardless of whether any note or other instrument is issued in exchange therefor.

(d)Domestic building and loan association

For purposes of this section, the term “domestic building and loan association” has the meaning given such term by section 7701(a)(19) without regard to subparagraph (C) thereof.

  • Treas. Reg. §Treas. Reg. §1.597-1 Definitions
  • Treas. Reg. §Treas. Reg. §1.597-1(a) Unless the context otherwise requires, the terms consolidated group, member and subsidiary have the meanings provided in § 1.
  • Treas. Reg. §Treas. Reg. §1.597-1(b) §1.597-1(b)
  • Treas. Reg. §Treas. Reg. §1.597-1(i) §1.597-1(i)
  • Treas. Reg. §Treas. Reg. §1.597-2 Taxation of FFA
  • Treas. Reg. §Treas. Reg. §1.597-2(a) Inclusion in income—(1) In general.
  • Treas. Reg. §Treas. Reg. §1.597-2(b) Basis of property that is FFA.
  • Treas. Reg. §Treas. Reg. §1.597-2(c) Timing of inclusion of certain FFA—(1) Scope.
  • Treas. Reg. §Treas. Reg. §1.597-2(d) Transfers of money or property to an Agency, and Covered Assets—(1) Transfers of property to an Agency.
  • Treas. Reg. §Treas. Reg. §1.597-2(e) Examples.
  • Treas. Reg. §Treas. Reg. §1.597-2(i) §1.597-2(i)
  • Treas. Reg. §Treas. Reg. §1.597-2(v) Optional accelerated recapture of deferred FFA.
  • Treas. Reg. §Treas. Reg. §1.597-3 Other rules
  • Treas. Reg. §Treas. Reg. §1.597-3(a) Ownership of assets.
  • Treas. Reg. §Treas. Reg. §1.597-3(b) Debt and equity interests received by an Agency.
  • Treas. Reg. §Treas. Reg. §1.597-3(c) Agency Obligations—(1) In general.
  • Treas. Reg. §Treas. Reg. §1.597-3(d) Successors.
  • Treas. Reg. §Treas. Reg. §1.597-3(e) §1.597-3(e)
  • Treas. Reg. §Treas. Reg. §1.597-3(f) Losses and deductions with respect to Covered Assets.
  • Treas. Reg. §Treas. Reg. §1.597-3(g) Anti-abuse rule.
  • Treas. Reg. §Treas. Reg. §1.597-4 Bridge Banks and Agency Control
  • Treas. Reg. §Treas. Reg. §1.597-4(a) Scope.
  • Treas. Reg. §Treas. Reg. §1.597-4(b) Status as taxpayer.
  • Treas. Reg. §Treas. Reg. §1.597-4(c) No section 382 ownership change.
  • Treas. Reg. §Treas. Reg. §1.597-4(d) Transfers to Bridge Banks—(1) In general.

4 Citing Cases

Washington Mut. Inc. v. United States 636 F.3d 1207 · Cir.
AmBase Corp. v. United States 731 F.3d 109 · Cir.
United States v. Stevens · Cir.
Washington Mutual Inc. ex rel. H.F. Ahmanson & Co. v. United States 636 F.3d 1207 · Cir.

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