Section 382 provides that the taxable income of a loss corporation for a year following an ownership change that may be offset by pre-change losses cannot exceed certain limitations for such year.
- The acquisition of shares of stock of a loss corporation acquired by Treasury pursuant to the CPP shall not be considered to have caused Treasury’s ownership in the loss corporation to have increased over its lowest percentage owned on any earlier date (pursuant to Section 382).
- Generally, such shares are considered outstanding for purposes of determining the percentage of loss corporation stock owned by other 5% shareholders.
- When measuring shifts in ownership by any 5% shareholder occurring on or after the date on which the loss corporation redeems shares held by Treasury that were acquired pursuant to the CPP, the shares so redeemed shall be treated as if they had never been outstanding.
Section 597 generally provides that assistance payments made to troubled financial institutions constitute taxable income to the institution.
- However, no amount furnished by Treasury to a financial institution pursuant to TARP will be treated as the provision of federal financial assistance within the meaning of Section 597.
Revenue Procedure 2008-65 sets forth a procedure for taxpayer election not to claim 50% bonus depreciation and instead increase business credit limitation under Section 38(c) or AMT credit limitation under Section 53(c).