§ 80. Restoration of value of certain securities

624 words·~3 min read·/usc/title-26/section-80

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(a)General rule In the case of a domestic corporation subject to the tax imposed by section 11 or 801, if the value of any security (as defined in section 165(g)(2))—

(1)which became worthless by reason of the expropriation, intervention, seizure, or similar taking by the government of any foreign country, any political subdivision thereof, or any agency or instrumentality of the foregoing of property to which such security was related, and

(2)which was taken into account as a loss from the sale or exchange of a capital asset or with respect to which a deduction for a loss was allowed under section 165,

is restored in whole or in part during any taxable year by reason of any recovery of money or other property in respect of the property to which such security was related, the value so restored (to the extent that, when added to the value so restored during prior taxable years, it does not exceed the amount of the loss described in paragraph (2)) shall, except as provided in subsection (b), be included in gross income for the taxable year in which such restoration occurs.

(b)Reduction for failure to receive tax benefit The amount otherwise includible in gross income under subsection

(a)in respect of any security shall be reduced by an amount equal to the amount (if any) of the loss described in subsection (a)(2) which did not result in a reduction of the taxpayer’s tax under this subtitle for any taxable year, determined under regulations prescribed by the Secretary.

(c)Character of income For purposes of this subtitle—

(1)Except as provided in paragraph (2), the amount included in gross income under this section shall be treated as ordinary income.

(2)If the loss described in subsection (a)(2) was taken into account as a loss from the sale or exchange of a capital asset, the amount included in gross income under this section shall be treated as long-term capital gain.

(d)Treatment under foreign expropriation loss recovery provisions This section shall not apply to any recovery of a foreign expropriation loss to which section 1351 applies.

(Added Pub. L. 89–384, § 1(b)(1), Apr. 8, 1966, 80 Stat. 101; amended Pub. L. 94–455, title XIX, §§ 1901(b)(3)(K), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1793, 1834; Pub. L. 98–369, div. A, title II, § 211(b)(2), July 18, 1984, 98 Stat. 754.)

Connections1 cite this · traces to 2

Cited by 1 section

statutes-at-large

Public Law 98–369
To provide for tax reform, and for deficit reduction

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U.S. Code

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Pub. L. 89–384, § 1(b)(1)
80 Stat. 101
Pub. L. 94–455, title XIX
90 Stat. 1793
Pub. L. 98–369, div. A, title II, § 211(b)(2)
98 Stat. 754
Pub. L. 98–369
Pub. L. 94–455, § 1906(b)(13)(A)
Pub. L. 94–455, § 1901(b)(3)(K)
section 215 of Pub. L. 98–369
section 1901(b)(3)(K) of Pub. L. 94–455
section 1901(d) of Pub. L. 94–455
Pub. L. 89–384, § 1(b)(3)
80 Stat. 102
Pub. L. 99–514, § 2
100 Stat. 2095

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cites case law

§ 80

Restoration of value of certain securities

Stat.×1

U.S.C.§ 801

U.S.C.§ 2

Pub. L.Pub. L. 89–384, § 1(b)(1)

Stat.80 Stat. 101

Pub. L.Pub. L. 94–455, title XIX

Stat.90 Stat. 1793

Pub. L.Pub. L. 98–369, div. A, title II, § 211(b)(2)

Cites 18 · showing 7Cited by 1 across 1 source