Shipowners' Protection and Indemnity Association Exclusion

IRC §526

Excludes receipts of non-profit shipowners' mutual protection and indemnity associations from gross income, except for income from interest, dividends, and rents.

Eligibility

Must be a mutual protection and indemnity association of shipowners not organized for profit with no net earnings inuring to private shareholders.

Frequently Asked Questions

Who is eligible for the Shipowners' Protection and Indemnity Association Exclusion?

Must be a mutual protection and indemnity association of shipowners not organized for profit with no net earnings inuring to private shareholders.

How does the Shipowners' Protection and Indemnity Association Exclusion work?

Excludes receipts of non-profit shipowners' mutual protection and indemnity associations from gross income, except for income from interest, dividends, and rents.

What law authorizes the Shipowners' Protection and Indemnity Association Exclusion?

The Shipowners' Protection and Indemnity Association Exclusion is authorized under IRC §526 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §526

Source: Internal Revenue Code, Title 26, United States Code

§ 526. Shipowners’ protection and indemnity associations There shall not be included in gross income the receipts of shipowners’ mutual protection and indemnity associations not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder; but such corporations shall be subject as other persons to the tax on their taxable income from interest, dividends, and rents. (Aug. 16, 1954, ch. 736, 68A Stat. 178.)

Legal Sources

US Code (Official) — 26 USC §526 → Cornell Law Institute — 26 USC §526 → Search IRS.gov for IRC §526 → Treasury Regulations (26 CFR) →

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