Alaska Native Settlement Trust Contribution Deduction

§ 247. Contributions to Alaska Native Settlement Trusts(a) In generalIn the case of a Native Corporation, there shall be allowed a deduction for any contributions made by such Native Corporation to a Settlement Trust (regardless of whether an election under section 646 is in effect for such Settlement Trust) for which the Native Corporation has made an annual election under subsection (e). (b) Amount of deductionThe amount of the deduction under subsection (a) shall be equal to—(1) in the case of a cash contribution (regardless of the method of payment, including currency, coins, money order, or check), the amount of such contribution, or (2) in the case of a contribution not described in paragraph (1), the lesser of—(A) the Native Corporation’s adjusted basis in the property contributed, or (B) the fair market value of the property contributed. (c) Limitation and carryover(1) In generalSubject to paragraph (2), the deduction allowed under subsection (a) for any taxable year shall not exceed the taxable income (as determined without regard to such deduction) of the Native Corporation for the taxable year in which the contribution was made. (2) CarryoverIf the aggregate amount of contributions described in subsection (a) for any taxable year exceeds the limitation under paragraph (1), such excess shall be treated as a contribution described in subsection (a) in each of the 15 succeeding years in order of time. (d) DefinitionsFor purposes of this section, the terms “Native Corporation” and “Settlement Trust” have the same meaning given such terms under section 646(h). (e) Manner of making election(1) In generalFor each taxable year, a Native Corporation may elect to have this section apply for such taxable year on the income tax return or an amendment or supplement to the return of the Native Corporation, with such election to have effect solely for such taxable year. (2) RevocationAny election made by a Native Corporation pursuant to this subsection may be revoked pursuant to a timely filed amendment or supplement to the income tax return of such Native Corporation. (f) Additional rules(1) Earnings and profitsNotwithstanding section 646(d)(2), in the case of a Native Corporation which claims a deduction under this section for any taxable year, the earnings and profits of such Native Corporation for such taxable year shall be reduced by the amount of such deduction. (2) Gain or lossNo gain or loss shall be recognized by the Native Corporation with respect to a contribution of property for which a deduction is allowed under this section. (3) IncomeSubject to subsection (g), a Settlement Trust shall include in income the amount of any deduction allowed under this section in the taxable year in which the Settlement Trust actually receives such contribution. (4) PeriodThe holding period under section 1223 of the Settlement Trust shall include the period the property was held by the Native Corporation.