
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC860J]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
Subchapter M--Regulated Investment Companies and Real Estate Investment 
                                 Trusts
 
        PART V--FINANCIAL ASSET SECURITIZATION INVESTMENT TRUSTS
 
Sec. 860J. Non-FASIT losses not to offset certain FASIT 
        inclusions
        

(a) In general

    The taxable income of the holder of the ownership interest or any 
high-yield interest in a FASIT for any taxable year shall in no event be 
less than the sum of--
        (1) such holder's taxable income determined solely with respect 
    to such interests (including gains and losses from sales and 
    exchanges of such interests), and
        (2) the excess inclusion (if any) under section 860E(a)(1) for 
    such taxable year.

(b) Coordination with section 172

    Any increase in the taxable income of any holder of the ownership 
interest or a high-yield interest in a FASIT for any taxable year by 
reason of subsection (a) shall be disregarded--
        (1) in determining under section 172 the amount of any net 
    operating loss for such taxable year, and
        (2) in determining taxable income for such taxable year for 
    purposes of the second sentence of section 172(b)(2).

(c) Coordination with minimum tax

    For purposes of part VI of subchapter A of this chapter--
        (1) the reference in section 55(b)(2) to taxable income shall be 
    treated as a reference to taxable income determined without regard 
    to this section,
        (2) the alternative minimum taxable income of any holder of the 
    ownership interest or a high-yield interest in a FASIT for any 
    taxable year shall in no event be less than such holder's taxable 
    income determined solely with respect to such interests, and
        (3) any increase in taxable income under this section shall be 
    disregarded for purposes of computing the alternative tax net 
    operating loss deduction.

(d) Affiliated groups

    All members of an affiliated group filing a consolidated return 
shall be treated as one taxpayer for purposes of this section.

(Added Pub. L. 104-188, title I, Sec. 1621(a), Aug. 20, 1996, 110 Stat. 
1860.)
