§ 44-14-12. Gain or loss from disposition of securities.
Gains or losses from the sale or other disposition of securities shall be determined
as follows:
(1) In the case of securities acquired on or after January 1, 1941, the basis shall be
the cost of the securities, and the tax administrator may require that the basis be
adjusted for amortization of premiums, if any, on "securitiesâ€� as defined in § 44-14-2(5)(ii), reasonably allowed or allowable to the date of sale or other disposition of the
securities.
(2) In the case of securities acquired prior to January 1, 1941, except as otherwise provided
in subdivision (3) of this subsection, the basis shall be the market value on January
1, 1941, of the securities, provided, that:
(i) No gain shall be recognized if the proceeds of the sale or other disposition of the
securities, though greater than the market value on January 1, 1941, are less than
or equal to the cost of the securities;
(ii) No loss shall be recognized if the proceeds of the sale or other disposition of the
securities, though less than the market value on January 1, 1941, are greater than
or equal to the cost of the securities;
(iii) If the cost of the securities, though greater than the market value on January 1,
1941, is less than the proceeds of the sale or other disposition of the securities,
then the basis shall equal the cost of the securities;
(iv) If the cost of the securities, though less than the market value on January 1, 1941,
is greater than the proceeds of the sale or other disposition of the securities, then
the basis shall equal the cost of the securities.
(3) In the case of "securitiesâ€�, as defined in § 44-14-2(5)(ii), acquired at a premium prior to January 1, 1941, the basis shall be the market value
on January 1, 1941, of the securities but not higher than the true amortized value
as of January 1, 1941, of the securities, and the tax administrator may require that
the basis be adjusted for amortization of the premiums, based upon the true amortized
value, reasonably allowed or allowable to the date of sale or other disposition of
the securities; provided, that gain shall be recognized only to the extent that the
proceeds of the sale or other disposition of the securities exceed the adjusted true
amortized value as of the date of sale or other disposition of the securities.