Sec. 101. Tax treatment of proceeds and payments of future income
137 words·~1 min read·
/bill/116/hr/1810/ih/section-101·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For purposes of the Internal Revenue Code of 1986— In the case of an individual, gross income shall not include the amount of any income-share funding which is paid to or on behalf of such individual under an income-share agreement. In the case of an income-share agreement under which the income-share funding exceeds the total income-share payments (in any period over the life of the contract), the individual’s gross income shall not include the amount of such excess. The amount of any income-share payments under an income-share agreement shall be treated— first, with respect to so much of such amount as does not exceed the income-share funding under such agreement, as a recovery of investment (with a corresponding reduction in basis) in the contract; and second, as income on the contract which is includible in gross income.