Page:United States Statutes at Large Volume 92 Part 2.djvu/1286

 92 STAT. 2566 Post, p. 2611.

PUBLIC LAW 95-598—NOV. 6, 1978

(2) Except as otherwise provided in this section and in section 728 of this title, any income of the estate in such a case, and any State or local tax on or measured by such income, shall be computed in the same .p-^i: manner as the income and the tax of an estate. (8) The estate in such a case shall use the same accounting method as the debtor used immediately before the commencement of the case. (c)(1) The commencement of a ease under this title concerning a • corporation or a partnership does not effect a change in the status of such corporation or partnership for the purposes of any State or local law imposing a tax on or measured by income. Except as otherwise provided in this section and in section 728 of this title, any income of the estate in such case may be taxed only as though such case had not ,, ^, been commenced. (2) In such a case, except as provided in section 728 of this title, the trustee shall make any tax return otherwise required by State or local law to be filed by or on behalf of such operation or partnership in the '' ' same manner and form as such corporation or partnership, as the case may be, is required to make such return. Post, p. 2645. (d) In a case under chapter 13 of this title, any income of the estate or the debtor may be taxed under a State or local law imposing a tax on or measured by income only to the debtor, and may not be taxed to the estate. (e) A claim allowed under section 502(f) or 503 of this title, other than a claim for a tax that is not otherwise deductible or a capital expenditure that is not otherwise deductible, is deductible by the entity to which income of the estate is taxed unless such claim was deducted by another entity, and a deduction for such a claim is deemed to be a deduction attributable to a business. (f) The trustee shall withhold from any payment of claims for wages, salaries, commissions, dividends, interest, or other payments, or collect, any amount required to be withheld or collected under applicable State or local tax law, and shall pay such withheld or collected amount to the appropriate governmental unit at the time and in the manner required by such tax law, and with the same priority as the claim from which such amount was withheld was paid. (g)(1) Neither gain nor loss shall be recognized on a transfer— (A) by operation of law, of property to the estate; (B) other than a sale, of property from the estate to the debtor; or Post, p. 2626. (C) in a case under chapter 11 of this title concerning a corporation, of property from the estate to a corporation that is an affiliate participating in a joint plan with the debtor, or that is a J successor to the debtor under the plan, except that gain or loss in the recognition of gain or loss under section 371 of the Internal Revenue Code of 1954 (26 U.S.C. 371). • - ' (2) The transferee of a transfer of a kind specified in this subsection shall take the property transferred with the same character, and with the transferor's basis, as adjusted under subsection (j)(5) of this section, and holding period. Post, p. 2641. (h) Notwithstanding sections 728(a) and 1146(a) of this title, for the purpose of determining the number of taxable periods during which the debtor or the estate may use a loss carryover or a loss carryback, the taxable period of the debtor during which the case is commenced is deemed not to have been terminated by such commencement.
 * l may be recognized to the same extent that such transfer results

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