Sec. 334. TREATMENT OF TIMBER GAINS
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## SEC. 334 TREATMENT OF TIMBER GAINS ###
(a)In General **[**[26 U.S.C. 1201](/us/usc/t26/s1201)**]** Section 1201(b) is amended to read as follows: > > ### “(b) Special Rate for Qualified Timber Gains > > > #### “(1) In general > > If, for any taxable year beginning in 2016, a corporation has both a net capital gain and qualified timber gain— > > > ##### “(A) > > subsection
(a)shall apply to such corporation for the taxable year without regard to whether the applicable tax rate exceeds 35 percent, and > > > ##### “(B) > > the tax computed under subsection (a)(2) shall be equal to the sum of— > > > ###### “(i) > > 23.8 percent of the least of— > > > ###### “(I) > > qualified timber gain, > > > ###### “(II) > > net capital gain, or > > > ###### “(III) > > taxable income, plus > > > ###### “(ii) > > 35 percent of the excess (if any) of taxable income over the sum of the amounts for which a tax was determined under subsection (a)(1) and clause (i). > > > #### “(2) Qualified timber gain > > For purposes of this section, the term ‘qualified timber gain’ means, with respect to any taxpayer for any taxable year, the excess (if any) of— > > > ##### “(A) > > the sum of the taxpayer’s gains described in subsections
(a)and
(b)of section 631 for such year, over > > > ##### “(B) > > the sum of the taxpayer’s losses described in such subsections for such year. > > For purposes of subparagraphs
(A)and (B), only timber held more than 15 years shall be taken into account.” > . ###
(b)Conforming Amendment **[**[26 U.S.C. 55](/us/usc/t26/s55)**]** Section 55(b) is amended by striking paragraph (4). ###
(c)Effective Date **[**[26 U.S.C. 55 note](/us/usc/t26/s55)**]** The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
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