26-U.S.C.-1242

26-U.S.C.-1242

§1242 – Losses On Small Business Investment Company Stock

Pathway

Title 26 > Subtitle A > Chapter 1 > Subchapter P > Part IV > Section 1242

Details

  • Reference: Section 1242
  • Legend: §1242 – Losses On Small Business Investment Company Stock
  • USCode Year: 2013

Provision Content

If—

(1) a loss is on stock in a small business investment company operating under the Small Business Investment Act of 1958, and

(2) such loss would (but for this section) be a loss from the sale or exchange of a capital asset,

then such loss shall be treated as an ordinary loss. For purposes of section 172 (relating to the net operating loss deduction) any amount of loss treated by reason of this section as an ordinary loss shall be treated as attributable to a trade or business of the taxpayer.

(Added Pub. L. 85–866, title I, §57(a), Sept. 2, 1958, 72 Stat. 1645; amended Pub. L. 94–455, title XIX, §1901(b)(3)(F), Oct. 4, 1976, 90 Stat. 1793.)

References in Text

The Small Business Investment Act of 1958, referred to in cl. (1), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689, as amended, which is classified principally to chapter 14B (§661 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 661 of Title 15 and Tables.

Amendments

1976—Pub. L. 94–455 substituted an ordinary loss for a loss from the sale or exchange of property which is not a capital asset, each time appearing.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.

Effective Date

Section applicable with respect to taxable years beginning after Sept. 2, 1958, see section 57(d) of Pub. L. 85–866, set out as an Effective Date of 1958 Amendment note under section 243 of this title.

U.S. Encyclopedia of Law Coverage

26-U.S.C.-1212 in the Legal Encyclopedia: Income Taxes

In this entry about 26-U.S.C.-1212, find legal reference material, bibliographies and premiere content related to income taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States income taxes-specific issues, written by authorities in the field.

26-U.S.C.-1202 in the Legal Encyclopedia: Tax Liability

In this entry about 26-U.S.C.-1202, find legal reference material, bibliographies and premiere content related to tax liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States tax liability-specific issues, written by authorities in the field.

26-U.S.C.-1201 in the Legal Encyclopedia: Taxation

In this entry about 26-U.S.C.-1201, find legal reference material, bibliographies and premiere content related to taxation in the American Encyclopedia of Law, presenting a comprehensive view of the United States taxation-specific issues, written by authorities in the field.

26-U.S.C.-1240 in the Legal Encyclopedia: Capital Gains

In this entry about 26-U.S.C.-1240, find legal reference material, bibliographies and premiere content related to capital gains in the American Encyclopedia of Law, presenting a comprehensive view of the United States capital gains-specific issues, written by authorities in the field.

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