Denial of capital gain treatment for gains on certain obligations not in registered form

26 U.S.C. § 1287

• Title: 26 — Internal Revenue Code
• Chapter: Subchapter P—Capital Gains and Losses
• Part: Subpart D—Miscellaneous Provisions

Text

(a) In general
If any registration-required obligation is not in registered form, any gain on the sale or other disposition of such obligation shall be treated as ordinary income (unless the issuance of such obligation was subject to tax under section 4701).
(b) Definitions
For purposes of subsection (a)—
The term "registration-required obligation" has the meaning given to such term by section 163(f)(2).
The term "registered form" has the same meaning as when used in section 163(f).

History

(Added Pub. L. 98–369, div. A, title I, §41(a), July 18, 1984, 98 Stat. 552; amended Pub. L. 111–147, title V, §502(a)(2)(D), Mar. 18, 2010, 124 Stat. 107.)

Editorial Notes

Editorial Notes

Amendments
2010—Subsec. (b)(1). Pub. L. 111–147 struck out "except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall not apply" before period.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment
Amendment by Pub. L. 111–147 applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, see section 502(f) of Pub. L. 111–147, set out as a note under section 149 of this title.

Effective Date
Section applicable to taxable years ending after July 18, 1984, except as otherwise provided, see section 44 of Pub. L. 98–369, set out as a note under section 1271 of this title.