§ 1242. Losses on small business investment company stock
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/usc/title-26/section-1242A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If—
(1)a loss is on stock in a small business investment company operating under 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. For purposes of section 172 (relating to the net operating loss deduction) any amount of loss treated by reason of this section as an ordinary loss shall be treated as attributable to a trade or business of the taxpayer.
(Added Pub. L. 85–866, title I, § 57(a), Sept. 2, 1958, 72 Stat. 1645; amended Pub. L. 94–455, title XIX, § 1901(b)(3)(F), Oct. 4, 1976, 90 Stat. 1793.)
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- Pub. L. 85–866, title I, § 57(a)
- 72 Stat. 1645
- Pub. L. 94–455, title XIX, § 1901(b)(3)(F)
- 90 Stat. 1793
- Pub. L. 85–699
- 72 Stat. 689
- Pub. L. 94–455
- section 1901(d) of Pub. L. 94–455
- section 57(d) of Pub. L. 85–866
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§ 1242
Losses on small business investment company stock
Stat.×1
Pub. L.Pub. L. 85–866, title I, § 57(a)
Stat.72 Stat. 1645
Pub. L.Pub. L. 94–455, title XIX, § 1901(b)(3)(F)
Stat.90 Stat. 1793
Pub. L.Pub. L. 85–699
Cites 12 · showing 8Cited by 1 across 1 source