Except as provided in subsection (b), the gross income of any organization to which this part applies shall be determined without any adjustment (as a reduction in gross receipts, an increase in cost of goods sold, or otherwise) by reason of any allocation or distribution to a patron out of the net earnings of such organization or by reason of any amount paid to a patron as a per-unit retain allocation (as defined in section 1388(f)).
In determining the taxable income of an organization to which this part applies, there shall not be taken into account amounts paid during the payment period for the taxable year-
For purposes of this title, any amount not taken into account under the preceding sentence shall, in the case of an amount described in paragraph (1) or (2), be treated in the same manner as an item of gross income and as a deduction therefrom, and in the case of an amount described in paragraph (3) or (4), be treated as a deduction in arriving at gross income.
In determining the taxable income of an organization described in section 1381(a)(1), there shall be allowed as a deduction (in addition to other deductions allowable under this chapter)-
For purposes of subsections (b) and (c)(2), the payment period for any taxable year is the period beginning with the first day of such taxable year and ending with the fifteenth day of the ninth month following the close of such year. For purposes of subsections (b)(1) and (c)(2)(A), a qualified check issued during the payment period shall be treated as an amount paid in money during such period if endorsed and cashed on or before the 90th day after the close of such period.
For purposes of subsection (b), in the case of a pooling arrangement for the marketing of products-
If any portion of the earnings from business done with or for patrons is includible in the organization's gross income for a taxable year after the taxable year during which the patronage occurred, then for purposes of applying paragraphs (1) and (2) of subsection (b) to such portion the patronage shall, to the extent provided in regulations prescribed by the Secretary, be considered to have occurred during the taxable year of the organization during which such earnings are includible in gross income.
An organization described in section 1381(a) which is engaged in pooling arrangements for the marketing of products may compute its taxable income with respect to any pool opened prior to March 1, 1978, under the completed crop pool method of accounting if-
For purposes of this subsection, the term "completed crop pool method of accounting" means a method of accounting under which gain or loss is computed separately for each crop year pool in the year in which the last of the products in the pool are disposed of.
26 U.S.C. § 1382
AMENDMENTS1978-Subsec. (g). Pub. L. 95-345 added subsec. (g).1976- Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing. 1969-Subsec. (b)(3). Pub. L. 91-172 expanded the category of per-unit retain allocations that may not be taken into account in determining the taxable income of an organization, by including per-unit retain allocations paid for in money or other property (except nonqualified per-unit retain certificates as defined in section 1388(i) of this section). 1966-Subsec. (a). Pub. L. 89-809, §211(a)(1), inserted reference to amounts paid to patrons as a per-unit retain allocation as defined in section 1388(f).Subsec. (b). Pub. L. 89-809, §211(a)(2), inserted "and per-unit retain allocations" in heading, added pars. (3) and (4), and, in text following par. (4), inserted provisions making existing text applicable only to amounts described in pars. (1) and (2) and inserted text covering the treatment of amounts described in pars. (3) and (4).Subsec. (e). Pub. L. 89-809, §211(a)(3), inserted provision that the marketing of products shall be treated as occurring during any of the taxable years in which the pool is open.Subsec. (f). Pub. L. 89-809, §211(a)(4), substituted "paragraphs (1) and (2) of subsection (b)" for "subsection (b)".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1969 AMENDMENTPub. L. 91-172, title IX, §911(c), Dec. 30, 1969, 83 Stat. 722, provided that: "The amendments made by this section [amending this section and sectionof this title] shall apply to per-unit retain allocations made after October 9, 1969."
EFFECTIVE DATE OF 1966 AMENDMENTPub. L. 89-809, title II, §211(e), Nov. 13, 1966, 80 Stat. 1584, provided that:"(1) The amendments made by subsections (a), (b), and (c) [amending this section and sections, , and of this title] shall apply to per-unit retain allocations made during taxable years of an organization described in section 1381(a) (relating to organizations to which part I of subchapter T of chapter 1 applies) beginning after April 30, 1966, with respect to products delivered during such years."(2) The amendments made by subsection (d) [amending section of this title] shall apply with respect to calendar years after 1966."
EFFECTIVE DATE Section applicable, except as otherwise provided, to taxable years of organizations described in sectionof this title beginning after Dec. 31, 1962, see section 17(c) of Pub. L. 87-834 set out as a note under section of this title.
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- The term "stock" includes shares in an association, joint-stock company, or insurance company.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.