United States Code (Last Updated: May 24, 2014) |
Title 26. INTERNAL REVENUE CODE |
SubTitle A. Income Taxes |
Chapter 1. NORMAL TAXES AND SURTAXES |
SubChapter P. Capital Gains and Losses |
Part IV. SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES |
§ 1243. Loss of small business investment company
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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 (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.
References In Text
The Small Business Investment Act of 1958, referred to in text, is Pub. L. 85–699,
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”.
1969—Par. (1). Pub. L. 91–172 substituted “stock received pursuant to the conversion privilege of convertible debentures” for “convertible debentures (including stock received pursuant to the conversion privilege)”.
Effective Date Of Amendment
Amendment by Pub. L. 94–455 applicable with respect to taxable years beginning after
Amendment by Pub. L. 91–172 applicable to taxable years beginning after
Effective Date
Section applicable with respect to taxable years beginning after