# 26 U.S.C. § 1243: Loss of small business investment company

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s1243>. Cite pinpoints as 26 U.S.C. § 1243(a)(1).

In the case of a small business investment company operating under the Small Business Investment Act of 1958, if—

## § 1243(1)

a loss is on stock received pursuant to the conversion privilege of convertible debentures acquired pursuant to section 304 of the Small Business Investment Act of 1958, and

## § 1243(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.

## Regulations

- [Treas. Reg. § 1.1243-1](/26/reg/1.1243-1.md): Loss of small business investment company. (interprets § 1243)

## Connections

Cites: none

Cited by: § 165 Losses

## Amendments

- 1958-09-02: [Pub. L. 85-866](/26/act/85-866.md), 72 Stat. 1645
- 1969-12-30: [Pub. L. 91-172](/26/act/91-172.md), 83 Stat. 624
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1793