Sec. 345. PREVENTION OF TRANSFER OF CERTAIN LOSSES FROM TAX INDIFFERENT PARTIES
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## SEC. 345 PREVENTION OF TRANSFER OF CERTAIN LOSSES FROM TAX INDIFFERENT PARTIES ###
(a)In General **[**[26 U.S.C. 267](/us/usc/t26/s267)**]** Section 267(d) is amended to read as follows: > > ### “(d) Amount of Gain Where Loss Previously Disallowed > > > #### “(1) In general > > If— > > > ##### “(A) > > in the case of a sale or exchange of property to the taxpayer a loss sustained by the transferor is not allowable to the transferor as a deduction by reason of subsection (a)(1), and > > > ##### “(B) > > the taxpayer sells or otherwise disposes of such property (or of other property the basis of which in the taxpayer’s hands is determined directly or indirectly by reference to such property) at a gain, > > then such gain shall be recognized only to the extent that it exceeds so much of such loss as is properly allocable to the property sold or otherwise disposed of by the taxpayer. > > > #### “(2) Exception for wash sales > > Paragraph
(1)shall not apply if the loss sustained by the transferor is not allowable to the transferor as a deduction by reason of section 1091 (relating to wash sales). > > > #### “(3) Exception for transfers from tax indifferent parties > > Paragraph
(1)shall not apply to the extent any loss sustained by the transferor (if allowed) would not be taken into account in determining a tax imposed under section 1 or 11 or a tax computed as provided by either of such sections.” > . ###
(b)Effective Date **[**[26 U.S.C. 267 note](/us/usc/t26/s267)**]** The amendment made by this section shall apply to sales and other dispositions of property acquired after December 31, 2015, by the taxpayer in a sale or exchange to which section 267(a)(1) of the Internal Revenue Code of 1986 applied.
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Sec. 345
PREVENTION OF TRANSFER OF CERTAIN LOSSES FROM TAX INDIFFERENT PARTIES
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