26 U.S. Code § 1243 - Loss of small business investment company
In the case of a small business investment company operating under the Small Business Investment Act of 1958, if—
(1) a loss is on stock received pursuant to the conversion privilege of convertible debentures acquired pursuant to section 304 of the Small Business Investment Act of 1958, and
then such loss shall be treated as an ordinary loss.
Source(Added Pub. L. 85–866, title I, § 57(a),Sept. 2, 1958, 72 Stat. 1645; amended Pub. L. 91–172, title IV, § 433(b),Dec. 30, 1969, 83 Stat. 624; 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 text, 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. Section 304 of the Small Business Investment Act of 1958, is classified to section 684 of Title 15. For complete classification of this Act to the Code, see Short Title note set out under section 661 of Title 15 and Tables.
1976—Pub. L. 94–455substituted “an ordinary loss” for “a loss from the sale or exchange of property which is not a capital asset”.
1969—Par. (1). Pub. L. 91–172substituted “stock received pursuant to the conversion privilege of convertible debentures” for “convertible debentures (including stock received pursuant to the conversion privilege)”.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) ofPub. L. 94–455, set out as a note under section 2 of this title.
Effective Date of 1969 Amendment
Amendment by Pub. L. 91–172applicable to taxable years beginning after July 11, 1969, see section 433(d) ofPub. L. 91–172, set out as a note under section 582 of this title.
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