Chapter
§1.6.3 QSub and Corporate Structure
§1.6.4 Electing S and QSub Treatment
§1.6.7 Passive Investment Income
§1.6.8 Built-in Gains Tax
§1.6.9 Estimated Tax Payments
§1.7 Domestic Building and Loan Associations
§1.7.2 Evolution of Thrift Taxation
§1.7.3 Special Bank Tax Rules
§1.7.6 Business Operations Test
§1.7.8 Regulatory Definition Contrasted
§1.7.9 Quick Reference Table
Chapter 2: Interest, Fee, and Other Income
§2.1 Tax Planning Suggestions
§2.2 General Accounting Rules
§2.2.1 Overall Methods of Accounting
§2.2.2 Requirements for Acceptable Accounting Methods
§2.2.3 Change in Accounting Method
§2.2.4 Accounting for Different Businesses
§2.3 Allocation of Receipts
§2.5.1 Private Activity Bonds
§2.5.2 Fire Department Loans
§2.6 Accruing Interest Income
§2.6.1 Rule of 78s Method
§2.6.2 Liquidation, Actuarial, Composite Methods
§2.7.1 Service Fee Income v. Interest Income
§2.7.2 When to Include Service Fee Income
§2.7.3 Credit Card Annual Fee
§2.7.4 Mortgage Servicing Fees
§2.8.2 Commissions on Loans
§2.8.3 Commissions on Purchase or Sale of Securities
§2.9 Repurchase Agreements
§2.9.1 Overview of Tax Treatment
§2.10 Mortgage Backed Securities
§2.10.1 Types of Mortgage Backed Securities
§2.10.2 Tax Treatment of CMO and Other Pass-Through Transactions
§2.11 Asset Backed Securities
§2.12 Hedging Transactions
§2.12.1 Definition of Notional Principal Contracts
§2.12.2 Accounting for Notional Principal Contracts
§2.12.3 Periodic Payments, Termination Payments and Nonperiodic Payments
§2.12.6 Currency Gains or Losses
§2.13 Premature Withdrawal Penalties
§2.14.2 FHLB Stock Dividends
§2.14.3 FHLB of Redemptions
Chapter 3: Discount and Premium
§3.1 Tax Planning Suggestions
§3.3 Original Issue Discount
§3.3.1 Accruing O.I.D.—General Rules
§3.3.2 O.I.D. on Worthless Debts
§3.3.3 O.I.D. from Prepaid Interest
§3.3.4 Debt Obligations Subject to O.I.D. Rules
§3.3.5 O.I.D. on Short-Term Loans
§3.3.6 Accruing O.I.D. Computation
§3.3.7 Basis Adjustments for O.I.D.
§3.3.8 Recordkeeping Requirements for O.I.D.
§3.4.1 Determining De Minimis O.I.D.
§3.4.2 Accruing De Minimis O.I.D.
§3.4.3 Points as De Minimis O.I.D.
§3.4.4 Pre-Regulation Treatment of Points
§3.4.5 Points under O.I.D. Regulations
§3.4.7 Grace Period Interest
§3.4.8 Mortgage Buy-Down Fees
§3.5.1 Credit Card Fees as O.I.D.
§3.5.2 Over-the-limit Fees as O.I.D.
§3.5.3 Late Charge Fees as O.I.D.
§3.5.4 Cash Advance Fees as O.I.D.
§3.5.5 Interchange Fees as O.I.D.
§3.5.6 ATM Fees as O.I.D.
§3.5.7 Merchant Fees as O.I.D.
§3.5.8 Non-sufficient Funds Fees
§3.6.1 Ordinary Income Treatment
§3.6.2 Special Rule for Short-Term Obligations
§3.6.3 Deferral of Interest Deduction
§3.6.4 Current Inclusion Election
§3.7.1 Premium Amortization Election
§3.7.4 Amortization Methods
Chapter 4: Securities Dealers and Investors
§4.1 Tax Planning Suggestions
§4.2 Permissible Securities Activities
§4.3 Determining Amount and Character of Gains or Losses
§4.3.3 Character of Gains or Losses—Debt Securities
§4.3.4 Character of Gain or Loss—Certain Preferred Stock
§4.3.5 Character of Gains or Losses—Mutual Fund Investments
§4.4 Securities Dealer Transactions
§4.4.1 Recognition Rules: Pre-Code Section 475
§4.4.2 Recognition Rules: Code Section 475
§4.4.3 Exceptions to Section 475 Recognition Rules
§4.4.4 Identification of Securities
§4.4.6 Traders, Investors and Speculators
§4.4.7 What is a “Security”?
§4.4.8 Measuring Mark-to-Market Gain or Loss
§4.4.9 Characterizing Mark-to-Market Gains or Losses
§4.4.10 Tax-Free Acquisitions
§4.4.11 Other Mark-to-Market Rules
§4.4.12 Change of Accounting Method
§4.5 Security Investment Transactions
§4.5.1 Statement of Financial Accounting Standards No. 115
Chapter 5: Nonperforming Loans
§5.1 Tax Planning Suggestions
§5.2 Book Treatment of Delinquent Interest
§5.2.2 Statement of Financial Accounting Standards No. 114
§5.3 Tax Treatment of Delinquent Interest
§5.3.2 “All Events” Test for Nonperforming Loans
§5.3.3 Reasonable Expectancy Standard
§5.3.4 Banks Not Using Conformity Bad Debt Method
§ 5.3.5 Loans Not Completely Charged-Off
§ 5.3.6 Safe Harbor Method
§5.3.7 Charge-Off of Accrued Interest
§5.3.8 Banks Using Conformity Bad Debt Method
§5.3.9 Mark-to-Market Loss
§5.3.10 Resumption of Accrual
§5.3.11 Payments After Non Accrual
§5.3.12 O.I.D. on Nonperforming Loans
§5.3.13 Open and Speculative Transactions
§5.3.14 Coordinated Issue Papers
§5.3.15 Code Sections 166 and 451 Contrasted
§5.3.16 Appeals Guidelines
§5.3.17 IRS Historical Practice
§6.1 Tax Planning Suggestions
§6.2 Elements of Exchange Treatment
§6.2.1 Cottage Savings Association
§6.2.2 Foundation for Regulations
§6.2.3 Cottage Savings Regulations
§6.3 Measuring Gain or Loss
§7.1 Tax Planning Suggestions
§7.2 Legal Aspects of Foreclosure
§7.3 Treatment of Gain or Loss
§7.3.2 Foreclosures by Thrifts: Pre-1996 Acquisitions
§7.4 Interest Income on Foreclosure
§7.5 Holding Security Property
§7.5.1 Post-Acquisition Expenses
§7.5.2 Post-Acquisition Income
§7.6 Disposing of Security Property
§7.6.1 Capital Asset Treatment
§7.6.2 Stock Acquired at Foreclosure
§7.6.3 Interest Income at Sale
§7.6.4 Nominee Corporations
Chapter 8: Business Expenses
§8.1 Tax Planning Suggestions
§8.2 General Rules for Taxable Year of Deduction
§8.2.1 Economic Performance Requirement
§8.2.2 Deducting Refunded Interest
§8.3 Capitalization of Expenditures
§8.3.2 Separate and Distinct Asset Test
§8.3.3 Future Benefits Test
§8.3.4 Loan Origination Costs
§8.4 Capitalization of Acquisition or Creation of Intangibles
§8.4.1 Overview of Capitalization Regulations
§8.4.2 Acquired Intangibles
§8.4.3 Created Intangibles
§8.4.4 Capitalized Transaction Costs
§8.4.5 Special Rules for Pooling Methods
§8.4.6 Accounting Method Changes
§8.5.1 Capitalization Regulations
§8.5.2 Judicial Background to Regulation Section 1.263(a)-5
§8.7 Amortization of Capitalized Costs
§8.8 Pre-Regulation IRS Pronouncements
§8.8.1 Home Equity Lines of Credit
§8.8.2 Origination of Mortgage Loans
§8.8.3 Advertising and Other Expenditures
§8.9 Start-Up and Expansion Expenditures
§8.9.2 Start-Up Expenditures—Code Section 195
§8.9.3 Organizational Expenditures—Code Section 248
§8.9.4 Comparison of Code Sections 195 and 248
§8.9.5 Electing Code Section 248
§8.10 Business Expansion and New Product Expenditures
§8.10.1 Branch Pre-Opening Costs
§8.10.2 Branch Geographic Expansion Costs
§8.10.4 Promotional, and Selling Costs
§8.10.5 Advertising Costs
§8.10.6 Mutual Fund Costs
§8.10.7 Credit Card Costs
§8.10.9 Expenditures Reducing Future Costs
§8.12 FDIC Deposit Insurance Assessment
§8.13 FDIC Exit and Entrance Fees
§8.14 Regulatory Examination Assessment
§8.15 Farm Credit System Assessment
§8.16 Directors’ and Officers’ Insurance
§8.17 Premiums on Debtor’s Life Insurance
§8.18 Discount for Early Mortgage Pay-off
§8.19 Supervisory Goodwill
§8.20 Net Operating Losses
§8.20.1 Pre-1987 Net Operating Losses
§8.20.2 1987-1993 Net Operating Losses
§8.20.3 Election to Forego Carryback
§8.20.4 2008-2009 Net Operating Losses
§8.21 Abandonment Losses—Customer Lists and Goodwill
§8.21.1 Abandonment Loss for Customer Lists
§8.21.2 Abandonment Loss for Supervisory Goodwill
§8.22 Covered Asset Losses
Chapter 9: Interest Expense
§9.1 Tax Planning Suggestions
§9.2 Allowance of Deduction
§9.2.1 Deducting Dividend Payments on TARP-Preferred Stock
§9.3.2 Special Rule for Thrifts
§9.3.3 When Crediting Takes Place
§9.3.4 Savings Certificates and O.I.D.
§9.4 Deferred Interest Expense
§9.4.1 Prepaid Interest by a Thrift
§9.4.2 Market Discount Bonds
§9.5 Disallowed Interest Expense
§9.5.1 Overview of Automatic Disallowance Rules
§9.5.2 Overview of General Disallowance Rule
§9.5.3 The TEFRA Disallowance
§9.5.4 The TRA '86 Disallowance Rule
§9.5.5 Qualified Tax-Exempt Obligations
§9.5.8 Consolidated Disallowance
§9.5.9 Tax Basis of Assets and Tax-Exempts
§9.6.1 Registration-Required Obligations
Chapter 10: Bad-Debt Deductions
§10.1 Tax Planning Suggestions
§10.2 Deduction for Worthless Debt
§10.2.1 Available Methods
§10.2.2 Amount of Deduction
§10.2.3 What Constitutes a “Bad Debt”?
§10.3 Direct Charge-Off Method
§10.3.1 Establishing Worthlessness
§10.3.2 The Meaning of “Charge-Off”
§10.4 Presumptions of Worthlessness
§10.4.1 Historical Presumption
§10.4.2 The Conformity Election
§10.4.3 Rebutting Conclusive Presumption
§10.5 Involuntary Charge-Off
§10.7 Allowable Reserve Methods
§10.7.1 Electing a Reserve Method
§10.7.2 Legislative History of Code Section 585
§10.7.4 Post-1986 Rules—Overview
§10.7.5 Commissioner’s Discretion Revoked
§10.7.6 Eligible Taxpayers
§10.7.7 Minimum Reserve Addition
§10.7.8 Alternative Formula Within Code Section 593
§10.7.10 Establishing and Maintaining Reserves
§10.7.11 Acceptable Bookkeeping for Reserves
§10.8 The Experience Method
§10.8.1 Moving-Average Formula
§10.8.2 Reserve Restoration—General Rule
§10.8.3 Reserve Restoration—Decline in Loan Balance
§10.8.4 Shorter Experience Period
§10.8.6 Extraordinary Loan Losses
§10.9 Percentage of Taxable Income Method
§10.9.1 Loans That Are Qualifying
§10.9.2 Loans That Are Nonqualifying
§10.9.3 Specially Computed Taxable Income
§10.9.4 Applicable Percentages
§10.9.5 Limitations on Reserve Additions
§10.9.6 Limitations on Reserve Additions (Pre-1987 Law)
§10.10 Commercial Bank Bad-Debt Reserve Recapture
§10.10.1 “Large Bank” Defined
§10.10.2 Code Section 481(a) Adjustments
§10.10.3 Advantages/Disadvantages of Recapture Methods
§10.10.4 Financially Troubled Banks
§10.11 Thrift Bad-Debt Reserve Recapture
§10.11.1 Applicable Excess Reserves—Large Bank
§10.11.2 Applicable Excess Reserves—Small Bank
§10.11.3 Acquisitions and Dispositions
§10.11.4 Residential Loan Requirement
§10.12 Tax Preference Issues
§10.12.1 Alternative Minimum Tax
§10.12.2 Corporate Preference Item
§11.1 Tax Planning Suggestions
§11.2 Interstate Opportunities for Banks and BHCs
§11.2.1 Permissible Interstate Bank Activities
§11.2.2 Permissible Interstate BHC Activities
§11.3 Taxable Acquisitions
§11.3.1 Taxation of Selling Corporation
§11.3.2 Cost Recovery Rules to Acquiring Corporation
§11.3.3 Cost Recovery: Code Section 197 Intangibles
§11.3.4 Code Section 197 Intangible Assets
§11.3.5 Code Section 197 Intangibles: Exceptions
§11.3.6 Code Section 197 Intangibles: Dispositions
§11.3.8 Qualified Stock Purchase
§11.4 Limitation on Loss Carryovers
§11.4.1 Code Section 382 Limitation
§11.4.2 Loss Corporations
§11.4.3 Pre-change Loss and Post-change Year
§11.4.6 Net Operating Loss Carryovers: Built-in Gain and Loss
§11.4.7 Net Unrealized Built-in Gain or Loss
§11.4.8 Taxable Year of Net Unrealized Built-in Loss
§11.4.9 Recognized Built-in Gain or Loss
§11.4.10 Threshold Requirement
§11.4.11 Calculating RBIL and RBIG
§11.4.12 Ownership Changes
§11.4.13 Owner Shift Involving Five-percent Shareholders
§11.4.14 Equity Structure Shift
§11.4.15 Multiple Transactions
§11.4.17 Stock Ownership Rules
§11.4.18 Disregarded Stock
§11.4.22 Separate Accounting
§11.4.23 Seized Financial Corporations
§11.4.24 Capital Contributions
§11.4.25 Recapitalized Financial Institutions
§11.5 Tax-Free Acquisitions
§11.5.2 Type A Reorganizations
§11.5.3 Acquisitions with Solely Voting Stock—Type B and Type C Reorganizations
§11.5.4 Type D Reorganizations
§11.5.5 Type E Reorganizations
§11.5.6 Type F Reorganizations
§11.5.7 Type G Reorganizations
§11.6 Federal Financial Assistance
§11.6.1 Federal Financial Assistance, Defined
§11.6.2 Principles Used in Prescribing Regulations
§11.6.3 Income Inclusion of FFA
§11.6.4 Transfers of Property by Institution
§11.6.5 Bridge Banks and Residual Entities
§11.6.6 Taxable Transfers
§11.6.7 Limitation on Collection of Income Tax
§11.6.8 Miscellaneous Rules
§11.6.9 Phantom Income from Loan Modifications
Chapter 12: Business Tax Credits
§12.1 Research and Development Credit
§12.1.1 Expenditures Eligible for Credit
§12.1.2 Expenditures Ineligible for Credit
§12.1.3 Internal Use Software
§12.1.5 Calculating the R&D Credit
§12.1.6 Research and Experimental Expenditures as Tax Preference Items
§12.1.7 Election to Claim Accelerated Research Credit in Lieu of Bonus Depreciation
§12.2 Low-Income Housing Credit
§12.2.1 Applicable Percentage
§12.2.2 Low-Income Housing Credit: Qualified Basis
§12.2.4 Low-Income Housing Project
§12.2.6 Additional Credit
§12.2.7 Disposition of Building
§12.2.8 Tenant’s Right to Acquisition
§12.2.9 Agency Authorization
§12.2.10 Housing Use Agreement
§12.2.11 Maximum Allocable Credits
§12.2.12 Allocation Authority
§12.2.13 Acquisition of Existing Buildings
§12.2.14 Recapture of Credit
§12.3 New Markets Tax Credit
§12.3.2 Qualified Equity Investment
§12.3.3 Qualified Community Development Entity
§12.3.4 Low-income Community
§12.3.5 Low-Income Community Investment
§12.3.6 Qualified Active Low-Income Community Business
§12.3.8 Recapture of Credit
Appendix A: IRS Banking Industry Issue Papers
§A.1 Interest on Cap Loans
§A.2 Premature Withdrawal Penalties
§A.3 Deferred Loan Fees—Composite Method
§A.4 Deferred Loan Fees—Loan Liquidation Method
§A.5 Mortgage Buy-Down Fees
§A.6 Nonperforming Loans (Commercial Bank)—Accrued Interest
§A.7 Nonperforming Loans—Accrued Interest (Thrift)
§A.8 Nonperforming Loans—Accrued Interest (Commercial Bank)—Appeals
§A.9 Nonperforming Loans, LMSB Industry Directive with IDR
§A.10 Foreclosures: Gain or Loss on Foreclosures
§A.11 Foreclosures: Interest Income on the Sale of Foreclosed Debt
§A.12 Foreclosures: Interest Income on the Sale of Foreclosed Debt—Appeals
§A.13 Validity of Treasury Regulations Section 1.593-6A(b)(5)(vi)
§A.14 Core Deposit Intangibles (Commercial Bank)
§A.15 Core Deposit Intangibles (Thrift)
§A.17 Gross Up of Net Foreign Loans
§A.18 Supervisory Goodwill—Settlement Guideline
§A.19 Supervisory Goodwill—LMSB Coordinated Issue
§A.20 Bad Debts: Industry Director Guidelines on Auditing Bank Bad Debt Conformity Election
§A.21 Bad Debts: Attachment to Industry Director Guidelines on Auditing Bank Bad Debt Conformity Election
§A.22 Bad Debts: Uniform Agreement on Classification of Securities
§A.23 Mark-to-Market: I.R.C. §475 Field Directive on Valuation
Appendix B: Audit Technique Guide for Commercial Banking
Table of Other Statutory Provisions and Statements of Financial Accounting Standards
Table of Treasury Regulations
Table of Revenue Rulings and Procedures
Table of IRS Private Letter Rulings and Other Releases
U.S. Master Bank Tax Guide (2014)
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
