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Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70354 › Proposal

The amount is counted in the year holding the last day of ownership

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70354, Sec. 70354. Written by .

The amount is counted in the year holding the last day of ownership

The document says “shallWho acts: Secretary of the TreasuryHow: statuteSec. 70354 in the PDF
What the document says

“Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder's taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year.”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70354

The section provides that an amount a United States shareholder must count for a CFC year goes into gross income for the shareholder's taxable year that includes the last day of that CFC year on which the shareholder owned stock in the corporation.

What the document actually says

“Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder's taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year.”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70354
That sentence, in plain words

The amount goes into one tax year of the holder. That is the year holding the last day the holder owned the shares.

What this is about

That day falls inside the firm's own tax year. The holder's year may differ from the firm's. This rule ties the two together.

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