[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1382-6]

[Page 790]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1382-6  Taxable income of cooperatives; treatment of earnings 
received after patronage occurred.

    If earnings derived from business done with or for patrons are 
includible in the gross income of the cooperative organization for a 
taxable year after the taxable year during which the patronage occurred, 
then, for purposes of determining whether the cooperative is allowed a 
deduction under section 1382(b) and Sec. 1.1382-2, the patronage to 
which these earnings relate shall be considered to have occurred during 
the taxable year for which such earnings are includible in the 
cooperative's gross income. Thus, if the cooperative organization pays 
these earnings out as patronage dividends during the payment period for 
the taxable year for which the earnings are includible in its gross 
income, it will be allowed a deduction for such payments under section 
1382(b)(1) and paragraph (b) of Sec. 1.1382-2, to the extent they are 
paid in money, qualified written notices of allocation, or other 
property (other than written notices of allocation).

[T.D. 6643, 28 FR 3156, Apr. 2, 1963]

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