WHAT EFFECT DOES BASIS REDUCTION HAVE ON THE FUTURE SALE OF CCF OBJECTIVE VESSELS?
When a Schedule B vessel is sold, any reduction in depreciable basis due to CCF withdrawals is treated the same as depreciation claimed. Thus, any gain on the sale would be reported as ordinary gain. However, if the full net proceeds are deposited into a CCF account, taxation of that gain can be deferred. 18. WHAT REPORTS ON DEPOSIT OR WITHDRAWAL ACTIVITY ARE REQUIRED? Tax year transactions in your account are reported on NOAA Form 34-82, “Capital Construction Fund – Deposit/Withdrawal Report.” This report is due for the first taxable year in which your CCF is effective and each year thereafter within 30 days after the due date for filing your Federal tax return each year. The information on this report certifies to NMFS your CCF account activity for the tax year. Because the CCF is a tax deferred program, NMFS is required by law to report the information to the Secretary of Treasury. You are also required by regulations to submit a complete copy of your Federal return along with the r
Related Questions
- If I use an average basis method for computing basis of mutual fund shares upon sale, how do I determine the holding period for those shares?
- What documents are the basis for the free of charge distribution and sale of the publications of the Danube Commission?
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