§895 — Income derived by a foreign central bank of issue from obligations of the United States or from bank deposits
1 cases·1 cited
Statute Text — 26 U.S.C. §895
Income derived by a foreign central bank of issue from obligations of the United States or of any agency or instrumentality thereof (including beneficial interests, participations, and other instruments issued under section 302(c) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717)) which are owned by such foreign central bank of issue, or derived from interest on deposits with persons carrying on the banking business, shall not be included in gross income and shall be exempt from taxation under this subtitle unless such obligations or deposits are held for, or used in connection with, the conduct of commercial banking functions or other commercial activities. For purposes of the preceding sentence the Bank for International Settlements shall be treated as a foreign central bank of issue.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.895-1 Income derived by a foreign central bank of issue, or by Bank for International Settlements, from obligations of the United States or from bank deposits
- Treas. Reg. §Treas. Reg. §1.895-1(a) In general.
- Treas. Reg. §Treas. Reg. §1.895-1(b) Foreign central bank of issue.
- Treas. Reg. §Treas. Reg. §1.895-1(c) Ownership of United States obligations or bank deposits.
- Treas. Reg. §Treas. Reg. §1.895-1(d) Commercial banking function or other commercial activity.
- Treas. Reg. §Treas. Reg. §1.895-1(e) Other exclusions.
- Treas. Reg. §Treas. Reg. §1.895-1(f) Effective date.
1 Citing Cases
ll be applied with respect to such income by substituting “100 percent” for “50 percent”.[10] In 2004, Congress amended section 904(f)(3) to cover certain dispositions of stock in a CFC.11 See American Jobs Creation Act of 2004, Pub. L. No. 108-357, § 895, 118 Stat. 1418, 1647; I.R.C. § 904(f)(3)(D). That amendment made section 904(f)(3) applicable to Liberty Global’s sale of J:COM stock in 2010, giving rise to the dispute before us. 10 Section 904(f)(3)(B)(i) provides that “[f]or purposes of th