Tap any paragraph to write a margin note. Your notes collect in the Desk below the text and file under cases with @. The side-by-side margin rail opens on a larger screen.

Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter P— Capital Gains and Losses · § 1242

§ 1242. Losses on small business investment company stock

295 words·~1 min read·/usc/title-26/section-1242

A 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.)
Connections1 cite this · traces to 3
9 references not yet in our index
  • 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
Citation graph
cites case law
§ 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
★   the supreme law of the land   ★
Don't Tread on Me
E Pluribus Unum — out of many, one

"If you don't know your rights, you don't have any."

Marginalia · a citizen's law index
A research desk, not legal advice. Always read the cited source before relying on a summary.
Questions or an issue? support@self-law.org
disclaimerMarginalia is a research index, not a law firm. Nothing on this site is legal, tax, or financial advice and no attorney–client relationship is formed by using it. Statutes, regulations, and case law change; summaries, search results, AI output, and member posts may be incomplete, out of date, or wrong. Any interpretation drawn from material on this site should be validated by a licensed attorney in your jurisdiction before you act on it.