I love definitions and special rules.

 

28999 777-212ER Singapore Airlines 26/06/1998 9V-SRC Active

 

Couple seconds old, now.

� 1276. Disposition gain representing accrued market discount treated as ordinary income

How Current is This?
(a) Ordinary income
(1) In general
Except as otherwise provided in this section, gain on the disposition of any market discount bond shall be treated as ordinary income to the extent it does not exceed the accrued market discount on such bond. Such gain shall be recognized notwithstanding any other provision of this subtitle.
(2) Dispositions other than sales, etc.
For purposes of paragraph (1), a person disposing of any market discount bond in any transaction other than a sale, exchange, or involuntary conversion shall be treated as realizing an amount equal to the fair market value of the bond.
(3) Treatment of partial principal payments
(A) In general
Any partial principal payment on a market discount bond shall be included in gross income as ordinary income to the extent such payment does not exceed the accrued market discount on such bond.
(B) Adjustment
If subparagraph (A) applies to any partial principal payment on any market discount bond, for purposes of applying this section to any disposition of (or subsequent partial principal payment on) such bond, the amount of accrued market discount shall be reduced by the amount of such partial principal payment included in gross income under subparagraph (A).
(4) Gain treated as interest for certain purposes
Except for purposes of sections 103, 871 (a),,[1] 881, 1441, 1442, and 6049 (and such other provisions as may be specified in regulations), any amount treated as ordinary income under paragraph (1) or (3) shall be treated as interest for purposes of this title.
(b) Accrued market discount
For purposes of this section�
(1) Ratable accrual
Except as otherwise provided in this subsection or subsection (c), the accrued market discount on any bond shall be an amount which bears the same ratio to the market discount on such bond as�
(A) the number of days which the taxpayer held the bond, bears to
(B) the number of days after the date the taxpayer acquired the bond and up to (and including) the date of its maturity.
(2) Election of accrual on basis of constant interest rate (in lieu of ratable accrual)
(A) In general
At the election of the taxpayer with respect to any bond, the accrued market discount on such bond shall be the aggregate amount which would have been includible in the gross income of the taxpayer under section 1272 (a) (determined without regard to paragraph (2) thereof) with respect to such bond for all periods during which the bond was held by the taxpayer if such bond had been�
(i) originally issued on the date on which such bond was acquired by the taxpayer,
(ii) for an issue price equal to the basis of the taxpayer in such bond immediately after its acquisition.
(B) Coordination where bond has original issue discount
In the case of any bond having original issue discount, for purposes of applying subparagraph (A)�
(i) the stated redemption price at maturity of such bond shall be treated as equal to its revised issue price, and
(ii) the determination of the portion of the original issue discount which would have been includible in the gross income of the taxpayer under section 1272 (a) shall be made under regulations prescribed by the Secretary.
(C) Election irrevocable
An election under subparagraph (A), once made with respect to any bond, shall be irrevocable.
(3) Special rule where partial principal payments
In the case of a bond the principal of which may be paid in 2 or more payments, the amount of accrued market discount shall be determined under regulations prescribed by the Secretary.
(c) Treatment of nonrecognition transactions
Under regulations prescribed by the Secretary�
(1) Transferred basis property
If a market discount bond is transferred in a nonrecognition transaction and such bond is transferred basis property in the hands of the transferee, for purposes of determining the amount of the accrued market discount with respect to the transferee�
(A) the transferee shall be treated as having acquired the bond on the date on which it was acquired by the transferor for an amount equal to the basis of the transferor, and
(B) proper adjustments shall be made for gain recognized by the transferor on such transfer (and for any original issue discount or market discount included in the gross income of the transferor).
(2) Exchanged basis property
If any market discount bond is disposed of by the taxpayer in a nonrecognition transaction and paragraph (1) does not apply to such transaction, any accrued market discount determined with respect to the property disposed of to the extent not theretofore treated as ordinary income under subsection (a)�
(A) shall be treated as accrued market discount with respect to the exchanged basis property received by the taxpayer in such transaction if such property is a market discount bond, and
(B) shall be treated as ordinary income on the disposition of the exchanged basis property received by the taxpayer in such exchange if such property is not a market discount bond.
(3) Paragraph (1) to apply to certain distributions by corporations or partnerships
For purposes of paragraph (1), if the basis of any market discount bond in the hands of a transferee is determined under section 732 (a), or 732 (b), such property shall be treated as transferred basis property in the hands of such transferee.
(d) Special rules
Under regulations prescribed by the Secretary�
(1) rules similar to the rules of subsection (b) of section 1245 shall apply for purposes of this section; except that�
(A) paragraph (1) of such subsection shall not apply,
(B) an exchange qualifying under section 354 (a), 355 (a), or 356 (a) (determined without regard to subsection (a) of this section) shall be treated as an exchange described in paragraph (3) of such subsection, and
(C) paragraph (3) of section 1245 (b) shall be applied as if it did not contain a reference to section 351, and
(2) appropriate adjustments shall be made to the basis of any property to reflect gain recognized under subsection (a).

 

two more

 

Why not have another post?

 

29002 777-228ER Air France 12/03/1998 F-GSPA Active

 

Push, puuuuuuuuuuuuussssshhhhhhhhhhhhhh, puuuuuuuuuuuuuuuuushhhhhhhhhhhh!!!!!!!!!!

 

Rolov's back.

 

I have just given birth...

To Another Post!!!!!!

 

39-11-204. Affirmative defense. �







(a) An affirmative defense in this title is so labeled by the phrase: �It is an affirmative defense to prosecution under �, which must be proven by a preponderance of the evidence, that �,� or words of similar import.





(b) The state is not required to negate the existence of an affirmative defense in the charge alleging commission of the offense.





(c) (1) If a person intends to rely upon an affirmative defense, the person shall, no later than ten (10) days before trial, notify the district attorney general in writing of the intention, or at such time as the court may direct naming the affirmative defense(s) to be asserted, and file a copy of the notice with the clerk.





(2) Except as provided in this title, if there is a failure to comply with the provisions of this subsection (c), the affirmative defense may not be raised; provided, that this shall not limit the right of the person to testify on the person's own behalf.





(3) The court may, for cause shown, allow late filing of the notice or grant additional time to the parties to prepare for trial or make other orders as may be appropriate.





(4) Evidence of an intention to raise an affirmative defense, which is later withdrawn, is not admissible in any civil or criminal proceeding against the person who gave the notice of the intention.





(5) The provisions of this subsection (c) shall only apply in courts of record.





(d) The issue of the existence of an affirmative defense may not be submitted to the jury unless it is fairly raised by the proof and notice has been provided according to subsection (c).





(e) If the issue of the existence of an affirmative defense is submitted to the jury, the court shall instruct the jury that the affirmative defense must be established by a preponderance of the evidence.





[Acts 1989, ch. 591, � 1; 1990, ch. 1030, � 5.]



I should have read on.

 

29003 777-228ER Air France 06/04/1998 F-GSPB Active

 

The sound of you giving birth to another post.

 

� 1277. Deferral of interest deduction allocable to accrued market discount

How Current is This?
(a) General rule
Except as otherwise provided in this section, the net direct interest expense with respect to any market discount bond shall be allowed as a deduction for the taxable year only to the extent that such expense exceeds the portion of the market discount allocable to the days during the taxable year on which such bond was held by the taxpayer (as determined under the rules of section 1276 (b)).
(b) Disallowed deduction allowed for later years
(1) Election to take into account in later year where net interest income from bond
(A) In general
If�
(i) there is net interest income for any taxable year with respect to any market discount bond, and
(ii) the taxpayer makes an election under this subparagraph with respect to such bond,
any disallowed interest expense with respect to such bond shall be treated as interest paid or accrued by the taxpayer during such taxable year to the extent such disallowed interest expense does not exceed the net interest income with respect to such bond.
(B) Determination of disallowed interest expense
For purposes of subparagraph (A), the amount of the disallowed interest expense�
(i) shall be determined as of the close of the preceding taxable year, and
(ii) shall not include any amount previously taken into account under subparagraph (A).
(C) Net interest income
For purposes of this paragraph, the term �net interest income� means the excess of the amount determined under paragraph (2) of subsection (c) over the amount determined under paragraph (1) of subsection (c).
(2) Remainder of disallowed interest expense allowed for year of disposition
(A) In general
Except as otherwise provided in this paragraph, the amount of the disallowed interest expense with respect to any market discount bond shall be treated as interest paid or accrued by the taxpayer in the taxable year in which such bond is disposed of.
(B) Nonrecognition transactions
If any market discount bond is disposed of in a nonrecognition transaction�
(i) the disallowed interest expense with respect to such bond shall be treated as interest paid or accrued in the year of disposition only to the extent of the amount of gain recognized on such disposition, and
(ii) the disallowed interest expense with respect to such property (to the extent not so treated) shall be treated as disallowed interest expense�
(I) in the case of a transaction described in section 1276(c)(1), of the transferee with respect to the transferred basis property, or
(II) in the case of a transaction described in section 1276 (c)(2), with respect to the exchanged basis property.
(C) Disallowed interest expense reduced for amounts previously taken into account under paragraph (1)
For purposes of this paragraph, the amount of the disallowed interest expense shall not include any amount previously taken into account under paragraph (1).
(3) Disallowed interest expense
For purposes of this subsection, the term �disallowed interest expense� means the aggregate amount disallowed under subsection (a) with respect to the market discount bond.
(c) Net direct interest expense
For purposes of this section, the term �net direct interest expense� means, with respect to any market discount bond, the excess (if any) of�
(1) the amount of interest paid or accrued during the taxable year on indebtedness which is incurred or continued to purchase or carry such bond, over
(2) the aggregate amount of interest (including original issue discount) includible in gross income for the taxable year with respect to such bond.
In the case of any financial institution which is a bank (as defined in section 585 (a)(2)), the determination of whether interest is described in paragraph (1) shall be made under principles similar to the principles of section 291 (e)(1)(B)(ii). Under rules similar to the rules of section 265 (a)(5), short sale expenses shall be treated as interest for purposes of determining net direct interest expense.

 

29004 777-228ER Air France 27/04/1998 F-GSPC Active