Amended 1983, 1984, 2000, 2002
- 2002 Pub. L. 107-147 Pub. L. 107–147 inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which read as follows: “a securities futures contract (as so defined) which is a capital asset in the hands of the taxpayer,”.
- 2000 Pub. L. 106-554 Pub. L. 106–554, § 1(a)(7) [title IV, § 401(b)(2)–(4)], added par. (3).
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 102(e)(9), inserted at end “The preceding sentence shall not apply to the retirement of any debt instrument (whether or not through a trust or other participation arrangement).”
- 1983 Pub. L. 97-448 Pub. L. 97–448 inserted reference to a regulated futures contract (as defined in section 1256) not described in paragraph (1) which is a capital asset in the hands of the taxpayer.
Cases: Cri-Leslie, LLC v. Commissioner, 882 F.3d 1026 (11th Cir. 2018)
Gain or loss attributable to the cancellation, lapse, expiration, or other termination of—
(1) a right or obligation (other than a securities futures contract, as defined in section 1234B) with respect to property which is (or on acquisition would be) a capital asset in the hands of the taxpayer, or
Amended 1997, 2000, 2002
- 2002 Pub. L. 107-147 Pub. L. 107–147 inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which read as follows: “a securities futures contract (as so defined) which is a capital asset in the hands of the taxpayer,”.
- 2000 Pub. L. 106-554 Pub. L. 106–554, § 1(a)(7) [title IV, § 401(b)(1)], inserted “(other than a securities futures contract, as defined in section 1234B)” after “right or obligation”.
- 1997 Pub. L. 105-34 Pub. L. 105–34 substituted “property” for “personal property (as defined in section 1092(d)(1))”.
Research 1
Cases: Pilgrim's Pride Corp. v. Commissioner, 779 F.3d 311 (5th Cir. 2015); Estate of McKelvey v. Commissioner, 906 F.3d 26 (2d Cir. 2018)
Cited by 1
(2) a section 1256 contract (as defined in section 1256) not described in paragraph (1) which is a capital asset in the hands of the taxpayer,
Amended 1984, 2002
- 2002 Pub. L. 107-147 Pub. L. 107–147 inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which read as follows: “a securities futures contract (as so defined) which is a capital asset in the hands of the taxpayer,”.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 102(e)(4), substituted “a section 1256 contract” for “a regulated futures contract”.
shall be treated as gain or loss from the sale of a capital asset. The preceding sentence shall not apply to the retirement of any debt instrument (whether or not through a trust or other participation arrangement).