In the case of a taxpayer who transfers securities (as defined in section
1236(c)) pursuant to an agreement which meets the requirements of subsection (b), no gain or loss shall be recognized on the exchange of such securities by the taxpayer for an obligation under such agreement, or on the exchange of rights under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer.
(b) Agreement requirements
In order to meet the requirements of this subsection, an agreement shall—
(1)provide for the return to the transferor of securities identical to the securities transferred;
(2)require that payments shall be made to the transferor of amounts equivalent to all interest, dividends, and other distributions which the owner of the securities is entitled to receive during the period beginning with the transfer of the securities by the transferor and ending with the transfer of identical securities back to the transferor;
(3)not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and
(4)meet such other requirements as the Secretary may by regulation prescribe.
Property acquired by a taxpayer described in subsection (a), in a transaction described in that subsection, shall have the same basis as the property transferred by that taxpayer.
A prior section
1058 was renumbered section
1061 of this title.
Section applicable with respect to amounts received after Dec. 31, 1976, as payments with respect to securities loans (as defined in section
512(a)(5) of this title), and transfers of securities, under agreements described in this section, occurring after such date, see section 2(e) ofPub. L. 95–345, set out as an Effective Date of 1978 Amendment note under section
509 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
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