Legal corpus: the complete U.S. Code (59,740 sections, all 53 titles)

Ingested titles 12–51 and 54 from OLRC USLM XML @119-100 (the whole Code
now, uniform edition; Title 53 is reserved/empty). LegalText 11,221 ->
59,740; repo total 105,704 records. Deterministic (byte-identical rerun,
verified on Title 42's 8,356 sections); make check green. make
legal-us-code default now covers every title.

Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>

legal/us/code/title-26/chapter-1/section-1000.md

@@ -0,0 +1,31 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1000"
+description: "Reserved]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1000"
+citation: "26 U.S.C. § 1000"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1000"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "3931fdd1603cd48bd90ae3c9510dc0b698c3d0b5df87924cc6ab3a26aef2f76f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "01ba4719c80b6fe911b091a7c05124b64eeece964e09c058ef8f9805daca546b"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1000 - Reserved]
+
+

legal/us/code/title-26/chapter-1/section-1001.md

@@ -0,0 +1,79 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1001"
+description: "Determination of amount of and recognition of gain or loss"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1001"
+citation: "26 U.S.C. § 1001"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1001"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "127ea34cf675857a059c334900bab3be11915096d6e165186c5d977cd0b69c01"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "b51bfd8ee33df9fb1dc09fdaa7f5a9f6afddf756a0b0533d3ce980c8cb79251a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1001 - Determination of amount of and recognition of gain or loss
+
+## Text
+
+(a) Computation of gain or loss The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized.
+
+(b) Amount realized The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received. In determining the amount realized—
+
+(1) there shall not be taken into account any amount received as reimbursement for real property taxes which are treated under section 164(d) as imposed on the purchaser, and
+
+(2) there shall be taken into account amounts representing real property taxes which are treated under section 164(d) as imposed on the taxpayer if such taxes are to be paid by the purchaser.
+
+(c) Recognition of gain or loss Except as otherwise provided in this subtitle, the entire amount of the gain or loss, determined under this section, on the sale or exchange of property shall be recognized.
+
+(d) Installment sales Nothing in this section shall be construed to prevent (in the case of property sold under contract providing for payment in installments) the taxation of that portion of any installment payment representing gain or profit in the year in which such payment is received.
+
+(e) Certain term interests (1) In general In determining gain or loss from the sale or other disposition of a term interest in property, that portion of the adjusted basis of such interest which is determined pursuant to section 1014, 1015, or 1041 (to the extent that such adjusted basis is a portion of the entire adjusted basis of the property) shall be disregarded.
+
+(2) Term interest in property defined For purposes of paragraph (1), the term “term interest in property” means—
+
+(A) a life interest in property,
+
+(B) an interest in property for a term of years, or
+
+(C) an income interest in a trust.
+
+(3) Exception Paragraph (1) shall not apply to a sale or other disposition which is a part of a transaction in which the entire interest in property is transferred to any person or persons.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 295; Pub. L. 91–172, title II, § 231(c)(2), title V, § 516(a), Dec. 30, 1969, 83 Stat. 579, 646; Pub. L. 94–455, title XIX, § 1901(a)(121), Oct. 4, 1976, 90 Stat. 1784; Pub. L. 95–600, title VII, § 702(c)(9), Nov. 6, 1978, 92 Stat. 2928; Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299; Pub. L. 98–369, div. A, title IV, § 421(b)(4), July 18, 1984, 98 Stat. 794; Pub. L. 103–66, title XIII, § 13213(a)(2)(E), Aug. 10, 1993, 107 Stat. 474.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1993—Subsec. (f). Pub. L. 103–66 struck out heading and text of subsec. (f). Text read as follows: “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e).” 1984—Subsec. (e)(1). Pub. L. 98–369 inserted reference to section 1041. 1980—Subsec. (e)(1). Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below. 1978—Subsec. (e)(1). Pub. L. 95–600 inserted reference to section 1023. See Repeals note below. 1976—Subsec. (c). Pub. L. 94–455 substituted provision recognizing the entire amount of gain or loss, except as otherwise provided, for provision referring to section 1002 for the determination of the extent of gain or loss to be recognized. 1969—Subsec. (e). Pub. L. 91–172, § 516(a), added subsec. (e). Subsec. (f). Pub. L. 91–172, § 231(c)(2), added subsec. (f).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1993 AmendmentAmendment by Pub. L. 103–66 applicable to expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103–66 set out as a note under section 62 of this title.
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an Effective Date note under section 1041 of this title.
+
+Effective Date of 1980 Amendment and Revival of Prior LawAmendment by Pub. L. 96–223 (repealing section 702(c)(9) of Pub. L. 95–600 and the amendment made thereby, which had amended this section) applicable in respect of decedents dying after Dec. 31, 1976, and except for certain elections, this title to be applied and administered as if those repealed provisions had not been enacted, see section 401(b), (e) of Pub. L. 96–223, set out as a note under section 1023 of this title.
+
+Effective Date of 1978 AmendmentAmendment by Pub. L. 95–600 effective as if included in the amendments and additions made by, and the appropriate provisions of Pub. L. 94–455, see section 702(c)(10) of Pub. L. 95–600, set out as a note under section 1014 of this title.
+
+Effective Date of 1976 AmendmentAmendment by Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective Date of 1969 AmendmentAmendment by section 231(c)(2) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 231(d) of Pub. L. 91–172, set out as a note under section 217 of this title. Pub. L. 91–172, title V, § 516(d), Dec. 30, 1969, 83 Stat. 648, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(1) The amendment made by subsection (a) [amending this section] shall apply to sales or other dispositions after October 9, 1969. “(2) The amendment made by subsection (b) [amending section 1231 of this title] shall apply to taxable years beginning after December 31, 1969. “(3) The amendments made by subsection (c) [enacting section 1253 and amending sections 162 and 1016 of this title] shall apply to transfers after December 31, 1969, except that section 1253(d)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (c) shall, at the election of the taxpayer (made at such time and in such manner as the Secretary or his delegate may by regulations prescribe), apply to transfers before January 1, 1970, but only with respect to payments made in taxable years ending after December 31, 1969, and beginning before January 1, 1980.”
+
+RepealsPub. L. 95–600, § 702(c)(9), cited as a credit to this section, and the amendment made thereby, were repealed by Pub. L. 96–223, title IV, § 401(a), 94 Stat. 299, resulting in the text of this section reading as it read prior to enactment of section 702(c)(9). See Effective Date of 1980 Amendment and Revival of Prior Law note set out above.

legal/us/code/title-26/chapter-1/section-1002.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1002"
+description: "Repealed. Pub. L. 94–455, title XIX, § 1901(b)(28)(B)(i), Oct. 4, 1976, 90 Stat. 1799]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1002"
+citation: "26 U.S.C. § 1002"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1002"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "c6548c0bb32b5df6f4c0fec965bd05be369c3ee088fe1d80028049633c2fbc97"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "2b16240716891a85c31d353dd41f2d26cc1ade89b7d4e6731ecdfc38813c107a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1002 - Repealed. Pub. L. 94–455, title XIX, § 1901(b)(28)(B)(i), Oct. 4, 1976, 90 Stat. 1799]
+
+## Notes
+
+Section, act Aug. 16, 1954, ch. 736, 68A Stat. 295, related to the recognition of the entire amount of gain or loss determined under section 1001 on the sale or exchange of property.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2 of this title.

legal/us/code/title-26/chapter-1/section-1011.md

@@ -0,0 +1,47 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1011"
+description: "Adjusted basis for determining gain or loss"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1011"
+citation: "26 U.S.C. § 1011"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1011"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "b1b565001d516c1fbbe41e0775995be6cdfcc7447cd6277abc1e9a13a42bd647"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "bd7c0e809b063d43c5301b4483bbbd3aac239016c6e5d56381edaac4b88efdc9"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1011 - Adjusted basis for determining gain or loss
+
+## Text
+
+(a) General rule The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under section 1012 or other applicable sections of this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses)), adjusted as provided in section 1016.
+
+(b) Bargain sale to a charitable organization If a deduction is allowable under section 170 (relating to charitable contributions) by reason of a sale, then the adjusted basis for determining the gain from such sale shall be that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 91–172, title II, § 201(f), Dec. 30, 1969, 83 Stat. 564.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1969—Pub. L. 91–172 redesignated existing provisions as subsec. (a) and added subsec. (b).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1969 AmendmentAmendment by Pub. L. 91–172 applicable with respect to sales made after Dec. 19, 1969, see section 201(g)(6) of Pub. L. 91–172, set out as a note under section 170 of this title.

legal/us/code/title-26/chapter-1/section-1012.md

@@ -0,0 +1,77 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1012"
+description: "Basis of property—cost"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1012"
+citation: "26 U.S.C. § 1012"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1012"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "6eaf943800808b9d891dfde51137d30350a0dcf9718fda3da28e679f9839c198"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "28a8a1328b51cf6f2124613912c3607cefed51dba0afe568a9e249f822b85026"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1012 - Basis of property—cost
+
+## Text
+
+(a) In general The basis of property shall be the cost of such property, except as otherwise provided in this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses).
+
+(b) Special rule for apportioned real estate taxes The cost of real property shall not include any amount in respect of real property taxes which are treated under section 164(d) as imposed on the taxpayer.
+
+(c) Determinations by account (1) In general In the case of the sale, exchange, or other disposition of a specified security on or after the applicable date, the conventions prescribed by regulations under this section shall be applied on an account by account basis.
+
+(2) Application to certain regulated investment companies (A) In general Except as provided in subparagraph (B), any stock for which an average basis method is permissible under this section which is acquired before January 1, 2012, shall be treated as a separate account from any such stock acquired on or after such date.
+
+(B) Election for treatment as single account If a regulated investment company described in subparagraph (A) elects to have this subparagraph apply with respect to one or more of its stockholders—
+
+(i) subparagraph (A) shall not apply with respect to any stock in such regulated investment company held by such stockholders, and
+
+(ii) all stock in such regulated investment company which is held by such stockholders shall be treated as covered securities described in section 6045(g)(3) without regard to the date of the acquisition of such stock.
+
+A rule similar to the rule of the preceding sentence shall apply with respect to a broker holding such stock as a nominee.
+
+(3) Definitions For purposes of this section, the terms “specified security” and “applicable date” shall have the meaning given such terms in section 6045(g).
+
+(d) Average basis for stock acquired pursuant to a dividend reinvestment plan (1) In general In the case of any stock acquired after December 31, 2011, in connection with a dividend reinvestment plan, the basis of such stock while held as part of such plan shall be determined using one of the methods which may be used for determining the basis of stock in a regulated investment company.
+
+(2) Treatment after transfer In the case of the transfer to another account of stock to which paragraph (1) applies, such stock shall have a cost basis in such other account equal to its basis in the dividend reinvestment plan immediately before such transfer (properly adjusted for any fees or other charges taken into account in connection with such transfer).
+
+(3) Separate accounts; election for treatment as single account (A) In general Rules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection.
+
+(B) Average basis method Notwithstanding paragraph (1), in the case of an election under rules similar to the rules of subsection (c)(2)(B) with respect to stock held in connection with a dividend reinvestment plan, the average basis method is permissible with respect to all such stock without regard to the date of the acquisition of such stock.
+
+(4) Dividend reinvestment plan For purposes of this subsection—
+
+(A) In general The term “dividend reinvestment plan” means any arrangement under which dividends on any stock are reinvested in stock identical to the stock with respect to which the dividends are paid.
+
+(B) Initial stock acquisition treated as acquired in connection with plan Stock shall be treated as acquired in connection with a dividend reinvestment plan if such stock is acquired pursuant to such plan or if the dividends paid on such stock are subject to such plan.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 110–343, div. B, title IV, § 403(b), Oct. 3, 2008, 122 Stat. 3857; Pub. L. 113–295, div. A, title II, §§ 210(f)(1)–(3), 220(n), Dec. 19, 2014, 128 Stat. 4031, 4032, 4036.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2014—Subsec. (c)(2). Pub. L. 113–295, § 210(f)(1)(A), substituted “regulated investment companies” for “funds” in heading. Subsec. (c)(2)(A). Pub. L. 113–295, § 220(n), substituted “this section” for “section 1012”. Subsec. (c)(2)(B). Pub. L. 113–295, § 210(f)(1)(C), substituted “regulated investment company” for “fund” wherever appearing. Pub. L. 113–295, § 210(f)(1)(B), struck out “fund” after “Election” in heading. Subsec. (d)(1). Pub. L. 113–295, § 210(f)(2), substituted “December 31, 2011” for “December 31, 2010” and “a regulated investment company” for “an open-end fund”. Subsec. (d)(3). Pub. L. 113–295, § 210(f)(3), amended par. (3) generally. Prior to amendment, text read as follows: “Rules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection.” 2008—Pub. L. 110–343 designated first sentence as subsec. (a) and second sentence as subsec. (b), inserted headings, and added subsecs. (c) and (d).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by section 210(f)(1)–(3) of Pub. L. 113–295 effective as if included in the provisions of the Energy Improvement and Extension Act of 2008, Pub. L. 110–343, div. B, to which such amendment relates, see section 210(h) of Pub. L. 113–295, set out as a note under section 45 of this title.
+
+Effective Date of 2008 AmendmentPub. L. 110–343, div. B, title IV, § 403(e), Oct. 3, 2008, 122 Stat. 3860, provided that: “(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section [enacting sections 6045A and 6045B of this title and amending this section and sections 6045 and 6724 of this title] shall take effect on January 1, 2011. “(2) Extension of period for statements sent to customers.—The amendments made by subsection (a)(3) [amending section 6045 of this title] shall apply to statements required to be furnished after December 31, 2008.”

legal/us/code/title-26/chapter-1/section-1013.md

@@ -0,0 +1,35 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1013"
+description: "Basis of property included in inventory"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1013"
+citation: "26 U.S.C. § 1013"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1013"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "11a185db2d6713562bf159ace196213ef816afba1c05c693cc0764ffff691e64"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "bce374d708e7b527e2d0a2100efac2471c4e1d4d31368cc76b6b06a814b16059"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1013 - Basis of property included in inventory
+
+## Text
+
+If the property should have been included in the last inventory, the basis shall be the last inventory value thereof.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 296.)

legal/us/code/title-26/chapter-1/section-1014.md

@@ -0,0 +1,145 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1014"
+description: "Basis of property acquired from a decedent"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1014"
+citation: "26 U.S.C. § 1014"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1014"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "544f351b8ec161041e06390445da04050e8b4482c8b67222154c6b6cea993a2a"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "d90aee251ea3cdabc996d3ad3928a6be21571cb03afffb24ff0379e88d791dd7"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1014 - Basis of property acquired from a decedent
+
+## Text
+
+(a) In general Except as otherwise provided in this section, the basis of property in the hands of a person acquiring the property from a decedent or to whom the property passed from a decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent’s death by such person, be—
+
+(1) the fair market value of the property at the date of the decedent’s death,
+
+(2) in the case of an election under section 2032, its value at the applicable valuation date prescribed by such section,
+
+(3) in the case of an election under section 2032A, its value determined under such section, or
+
+(4) to the extent of the applicability of the exclusion described in section 2031(c), the basis in the hands of the decedent.
+
+(b) Property acquired from the decedent For purposes of subsection (a), the following property shall be considered to have been acquired from or to have passed from the decedent:
+
+(1) Property acquired by bequest, devise, or inheritance, or by the decedent’s estate from the decedent;
+
+(2) Property transferred by the decedent during his lifetime in trust to pay the income for life to or on the order or direction of the decedent, with the right reserved to the decedent at all times before his death to revoke the trust;
+
+(3) In the case of decedents dying after December 31, 1951, property transferred by the decedent during his lifetime in trust to pay the income for life to or on the order or direction of the decedent with the right reserved to the decedent at all times before his death to make any change in the enjoyment thereof through the exercise of a power to alter, amend, or terminate the trust;
+
+(4) Property passing without full and adequate consideration under a general power of appointment exercised by the decedent by will;
+
+(5) In the case of decedents dying after August 26, 1937, and before January 1, 2005, property acquired by bequest, devise, or inheritance or by the decedent’s estate from the decedent, if the property consists of stock or securities of a foreign corporation, which with respect to its taxable year next preceding the date of the decedent’s death was, under the law applicable to such year, a foreign personal holding company. In such case, the basis shall be the fair market value of such property at the date of the decedent’s death or the basis in the hands of the decedent, whichever is lower;
+
+(6) In the case of decedents dying after December 31, 1947, property which represents the surviving spouse’s one-half share of community property held by the decedent and the surviving spouse under the community property laws of any State, or possession of the United States or any foreign country, if at least one-half of the whole of the community interest in such property was includible in determining the value of the decedent’s gross estate under chapter 11 of subtitle B (section 2001 and following, relating to estate tax) or section 811 of the Internal Revenue Code of 1939;
+
+[(7) , (8) Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(74)(B), Dec. 19, 2014, 128 Stat. 4049]
+
+(9) In the case of decedents dying after December 31, 1953, property acquired from the decedent by reason of death, form of ownership, or other conditions (including property acquired through the exercise or non-exercise of a power of appointment), if by reason thereof the property is required to be included in determining the value of the decedent’s gross estate under chapter 11 of subtitle B or under the Internal Revenue Code of 1939. In such case, if the property is acquired before the death of the decedent, the basis shall be the amount determined under subsection (a) reduced by the amount allowed to the taxpayer as deductions in computing taxable income under this subtitle or prior income tax laws for exhaustion, wear and tear, obsolescence, amortization, and depletion on such property before the death of the decedent. Such basis shall be applicable to the property commencing on the death of the decedent. This paragraph shall not apply to—
+
+(A) annuities described in section 72;
+
+(B) property to which paragraph (5) would apply if the property had been acquired by bequest; and
+
+(C) property described in any other paragraph of this subsection.
+
+(10) Property includible in the gross estate of the decedent under section 2044 (relating to certain property for which marital deduction was previously allowed). In any such case, the last 3 sentences of paragraph (9) shall apply as if such property were described in the first sentence of paragraph (9).
+
+(c) Property representing income in respect of a decedent This section shall not apply to property which constitutes a right to receive an item of income in respect of a decedent under section 691.
+
+(d) Special rule with respect to DISC stock If stock owned by a decedent in a DISC or former DISC (as defined in section 992(a)) acquires a new basis under subsection (a), such basis (determined before the application of this subsection) shall be reduced by the amount (if any) which would have been included in gross income under section 995(c) as a dividend if the decedent had lived and sold the stock at its fair market value on the estate tax valuation date. In computing the gain the decedent would have had if he had lived and sold the stock, his basis shall be determined without regard to the last sentence of section 996(e)(2) (relating to reductions of basis of DISC stock). For purposes of this subsection, the estate tax valuation date is the date of the decedent’s death or, in the case of an election under section 2032, the applicable valuation date prescribed by that section.
+
+(e) Appreciated property acquired by decedent by gift within 1 year of death (1) In general In the case of a decedent dying after December 31, 1981, if—
+
+(A) appreciated property was acquired by the decedent by gift during the 1-year period ending on the date of the decedent’s death, and
+
+(B) such property is acquired from the decedent by (or passes from the decedent to) the donor of such property (or the spouse of such donor),
+
+the basis of such property in the hands of such donor (or spouse) shall be the adjusted basis of such property in the hands of the decedent immediately before the death of the decedent.
+
+(2) Definitions For purposes of paragraph (1)—
+
+(A) Appreciated property The term “appreciated property” means any property if the fair market value of such property on the day it was transferred to the decedent by gift exceeds its adjusted basis.
+
+(B) Treatment of certain property sold by estate In the case of any appreciated property described in subparagraph (A) of paragraph (1) sold by the estate of the decedent or by a trust of which the decedent was the grantor, rules similar to the rules of paragraph (1) shall apply to the extent the donor of such property (or the spouse of such donor) is entitled to the proceeds from such sale.
+
+(f) Basis must be consistent with estate tax return For purposes of this section—
+
+(1) In general The basis of any property to which subsection (a) applies shall not exceed—
+
+(A) in the case of property the final value of which has been determined for purposes of the tax imposed by chapter 11 on the estate of such decedent, such value, and
+
+(B) in the case of property not described in subparagraph (A) and with respect to which a statement has been furnished under section 6035(a) identifying the value of such property, such value.
+
+(2) Exception Paragraph (1) shall only apply to any property whose inclusion in the decedent’s estate increased the liability for the tax imposed by chapter 11 (reduced by credits allowable against such tax) on such estate.
+
+(3) Determination For purposes of paragraph (1), the basis of property has been determined for purposes of the tax imposed by chapter 11 if—
+
+(A) the value of such property is shown on a return under section 6018 and such value is not contested by the Secretary before the expiration of the time for assessing a tax under chapter 11,
+
+(B) in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the executor of the estate, or
+
+(C) the value is determined by a court or pursuant to a settlement agreement with the Secretary.
+
+(4) Regulations The Secretary may by regulations provide exceptions to the application of this subsection.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 85–320, § 2, Feb. 11, 1958, 72 Stat. 5; Pub. L. 92–178, title V, § 502(f), Dec. 10, 1971, 85 Stat. 550; Pub. L. 94–455, title XIX, § 1901(c)(8), title XX, § 2005(a)(1), Oct. 4, 1976, 90 Stat. 1803, 1872; Pub. L. 95–600, title V, § 515(1), title VII, § 702(c)(1)(A), Nov. 6, 1978, 92 Stat. 2884, 2926; Pub. L. 96–222, title I, § 107(a)(2)(A), Apr. 1, 1980, 94 Stat. 222; Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299; Pub. L. 97–34, title IV, § 425(a), Aug. 13, 1981, 95 Stat. 318; Pub. L. 97–448, title I, § 104(a)(1)(A), Jan. 12, 1983, 96 Stat. 2379; Pub. L. 105–34, title V, § 508(b), Aug. 5, 1997, 111 Stat. 860; Pub. L. 107–16, title V, § 541, June 7, 2001, 115 Stat. 76; Pub. L. 108–357, title IV, § 413(c)(18), Oct. 22, 2004, 118 Stat. 1508; Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300; Pub. L. 113–295, div. A, title II, § 221(a)(74), Dec. 19, 2014, 128 Stat. 4049; Pub. L. 114–41, title II, § 2004(a), July 31, 2015, 129 Stat. 454.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 811 of the Internal Revenue Code of 1939, referred to in subsec. (b)(6), was classified to section 811 of former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that references in the 1986 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1986 Code, which is then applicable. The Internal Revenue Code of 1939, referred to in subsec. (b)(9), is act Feb. 10, 1939, ch. 2, 53 Stat. 1. Prior to the enactment of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the 1939 Code was classified to former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title.
+
+Amendments2015—Subsec. (f). Pub. L. 114–41 added subsec. (f). 2014—Subsec. (a)(2). Pub. L. 113–295, § 221(a)(74)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “in the case of an election under either section 2032 or section 811(j) of the Internal Revenue Code of 1939 where the decedent died after October 21, 1942, its value at the applicable valuation date prescribed by those sections,”. Subsec. (b)(7), (8). Pub. L. 113–295, § 221(a)(74)(B), struck out pars. (7) and (8). Prior to repeal, par. (7) related to property representing a surviving spouse’s one-half share of community property held by the surviving spouse and a decedent dying after Oct. 21, 1942, and on or before Dec. 31, 1947, and par. (8) related to property representing certain interests of the survivor in a joint and survivor’s annuity in the case of a decedent dying after Dec. 31, 1950, and before Jan. 1, 1954. 2010—Subsec. (f). Pub. L. 111–312 amended section to read as if amendment by Pub. L. 107–16, § 541, had never been enacted. See 2001 Amendment note below. Prior to amendment, text of subsec. (f) read as follows: “This section shall not apply with respect to decedents dying after December 31, 2009.” 2004—Subsec. (b)(5). Pub. L. 108–357 inserted “and before January 1, 2005,” after “August 26, 1937,”. 2001—Subsec. (f). Pub. L. 107–16, § 541, added subsec. (f). 1997—Subsec. (a). Pub. L. 105–34 struck out “or” at end of pars. (1) and (2), struck out the period at end of par. (3) and inserted “, or”, and added par. (4). 1983—Subsec. (b)(10). Pub. L. 97–448 added par. (10). 1981—Subsec. (e). Pub. L. 97–34 added subsec. (e). 1980—Subsec. (a)(3). Pub. L. 96–222 substituted “section 2032A” for “section 2032.1”. Subsec. (d). Pub. L. 96–223 repealed the amendment made by Pub. L. 94–455, § 2005(a)(1). See 1976 Amendment note below. 1978—Subsec. (a). Pub. L. 95–600, § 702(c)(1)(A), designated existing provisions as pars. (1) and (2) and added par. (3). Subsec. (d). Pub. L. 95–600, § 515(1), substituted “December 31, 1979” for “December 31, 1976” in heading and text. 1976—Subsec. (b)(6), (7). Pub. L. 94–455, § 1901(c)(8), struck out “Territory,” after “under the community property laws of any State,”. Subsec. (d). Pub. L. 94–455, § 2005(a)(1), substituted provision relating to the applicability of this section to decedents dying after 1976 for provision relating to a special rule with respect to DISC stock. See Repeals note below. 1971—Subsec. (d). Pub. L. 92–178 added subsec. (d). 1958—Subsec. (d). Pub. L. 85–320 repealed subsec. (d) which made section inapplicable to restricted stock options described in section 421 which the employee has not exercised at death.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2015 AmendmentPub. L. 114–41, title II, § 2004(d), July 31, 2015, 129 Stat. 456, provided that: “The amendments made by this section [enacting section 6035 of this title and amending this section and sections 6662 and 6724 of this title] shall apply to property with respect to which an estate tax return is filed after the date of the enactment of this Act [July 31, 2015].”
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 2010 AmendmentAmendment by Pub. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Pub. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.
+
+Effective Date of 2004 AmendmentAmendment by Pub. L. 108–357 applicable to taxable years of foreign corporations beginning after Dec. 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end, see section 413(d)(1) of Pub. L. 108–357, set out as an Effective and Termination Dates of 2004 Amendments note under section 1 of this title.
+
+Effective Date of 1997 AmendmentPub. L. 105–34, title V, § 508(e)(1), Aug. 5, 1997, 111 Stat. 860, provided that: “The amendments made by subsections (a) and (b) [amending this section and section 2031 of this title] shall apply to estates of decedents dying after December 31, 1997.”
+
+Effective Date of 1983 AmendmentAmendment by Pub. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97–34, to which such amendment relates, see section 109 of Pub. L. 97–448, set out as a note under section 1 of this title.
+
+Effective Date of 1981 AmendmentPub. L. 97–34, title IV, § 425(b), Aug. 13, 1981, 95 Stat. 318, provided that: “The amendment made by subsection (a) [amending this section] shall apply to property acquired after the date of the enactment of this Act [Aug. 13, 1981] by decedents dying after December 31, 1981.”
+
+Effective Date of 1980 Amendments and Revival of Prior LawAmendment by Pub. L. 96–223 (repealing section 2005(a)(1) of Pub. L. 94–455 and the amendment made thereby, which had amended this section) applicable in respect of decedents dying after Dec. 31, 1976, and except for certain elections, this title to be applied and administered as if those repealed provisions had not been enacted, see section 401(b), (e) of Pub. L. 96–223, set out as a note under section 1023 of this title. Amendment by Pub. L. 96–222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95–600, to which such amendment relates, see section 201 of Pub. L. 96–222, set out as an Effective Date of 1980 Amendment note under section 32 of this title.
+
+Effective Date of 1978 AmendmentPub. L. 95–600, title VII, § 702(c)(10), Nov. 6, 1978, 92 Stat. 2928, provided that: “The amendments made by this subsection [amending this section and sections 1001, 1223, and 2614 of this title] shall take effect as if included in the amendments and additions made by, and the appropriate provisions of the Tax Reform Act of 1976 [Pub. L. 94–455, Oct. 4, 1976, 90 Stat 1525].”
+
+Effective Date of 1976 AmendmentAmendment by section 1901(c)(8) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title. Amendment by section 2005(a)(1) of Pub. L. 94–455 applicable in respect of decedents dying after Dec. 31, 1976, see section 2005(f) of Pub. L. 94–455, set out as an Effective Date note under section 1015 of this title.
+
+Effective Date of 1971 AmendmentAmendment by Pub. L. 92–178 applicable with respect to taxable years ending after Dec. 31, 1971, except that a corporation may not be a DISC for any taxable year beginning before Jan. 1972, see section 507 of Pub. L. 92–178, set out as a note under section 991 of this title.
+
+Effective Date of 1958 AmendmentAmendment by Pub. L. 85–320 applicable with respect to taxable years ending after Dec. 31, 1956, but only in the case of employees dying after such date, see section 3 of Pub. L. 85–320, set out as a note under section 421 of this title.
+
+RepealsPub. L. 94–455, § 2005(a)(1), cited as a credit to this section, and the amendment made thereby, were repealed by Pub. L. 96–223, title IV, § 401(a), 94 Stat. 299, resulting in the text of this section reading as it read prior to enactment of section 2005(a)(1). See Effective Date of 1980 Amendments and Revival of Prior Law note above.
+
+Election of Carryover Basis Rules by Certain EstatesPub. L. 96–223, title IV, § 401(d), Apr. 2, 1980, 94 Stat. 300, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Notwithstanding any other provision of law, in the case of a decedent dying after December 31, 1976, and before November 7, 1978, the executor (within the meaning of section 2203 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) of such decedent’s estate may irrevocably elect, within 120 days following the date of enactment of this Act [Apr. 2, 1980] and in such manner as the Secretary of the Treasury or his delegate shall prescribe, to have the basis of all property acquired from or passing from the decedent (within the meaning of section 1014(b) of the Internal Revenue Code of 1986) determined for all purposes under such Code as though the provisions of section 2005 of the Tax Reform Act of 1976 [Pub. L. 94–455] (as amended by the provisions of section 702(c) of the Revenue Act of 1978 [Pub. L. 95–600] applied to such property acquired or passing from such decedent.”

legal/us/code/title-26/chapter-1/section-1015.md

@@ -0,0 +1,85 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1015"
+description: "Basis of property acquired by gifts and transfers in trust"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1015"
+citation: "26 U.S.C. § 1015"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1015"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "1badf9289396a17d07f5f69d7452c9e1e17d38c1ec1a8ab7c90158b2bb543f9a"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "c3ea13f004893fb72292c07316372e514a501a35d898f5c1b799dc13a8bf0281"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1015 - Basis of property acquired by gifts and transfers in trust
+
+## Text
+
+(a) Gifts after December 31, 1920 If the property was acquired by gift after December 31, 1920, the basis shall be the same as it would be in the hands of the donor or the last preceding owner by whom it was not acquired by gift, except that if such basis (adjusted for the period before the date of the gift as provided in section 1016) is greater than the fair market value of the property at the time of the gift, then for the purpose of determining loss the basis shall be such fair market value. If the facts necessary to determine the basis in the hands of the donor or the last preceding owner are unknown to the donee, the Secretary shall, if possible, obtain such facts from such donor or last preceding owner, or any other person cognizant thereof. If the Secretary finds it impossible to obtain such facts, the basis in the hands of such donor or last preceding owner shall be the fair market value of such property as found by the Secretary as of the date or approximate date at which, according to the best information that the Secretary is able to obtain, such property was acquired by such donor or last preceding owner.
+
+(b) Transfer in trust after December 31, 1920 If the property was acquired after December 31, 1920, by a transfer in trust (other than by a transfer in trust by a gift, bequest, or devise), the basis shall be the same as it would be in the hands of the grantor increased in the amount of gain or decreased in the amount of loss recognized to the grantor on such transfer under the law applicable to the year in which the transfer was made.
+
+(c) Gift or transfer in trust before January 1, 1921 If the property was acquired by gift or transfer in trust on or before December 31, 1920, the basis shall be the fair market value of such property at the time of such acquisition.
+
+(d) Increased basis for gift tax paid (1) In general If—
+
+(A) the property is acquired by gift on or after September 2, 1958, the basis shall be the basis determined under subsection (a), increased (but not above the fair market value of the property at the time of the gift) by the amount of gift tax paid with respect to such gift, or
+
+(B) the property was acquired by gift before September 2, 1958, and has not been sold, exchanged, or otherwise disposed of before such date, the basis of the property shall be increased on such date by the amount of gift tax paid with respect to such gift, but such increase shall not exceed an amount equal to the amount by which the fair market value of the property at the time of the gift exceeded the basis of the property in the hands of the donor at the time of the gift.
+
+(2) Amount of tax paid with respect to gift For purposes of paragraph (1), the amount of gift tax paid with respect to any gift is an amount which bears the same ratio to the amount of gift tax paid under chapter 12 with respect to all gifts made by the donor for the calendar year (or preceding calendar period) in which such gift is made as the amount of such gift bears to the taxable gifts (as defined in section 2503(a) but computed without the deduction allowed by section 2521) made by the donor during such calendar year or period. For purposes of the preceding sentence, the amount of any gift shall be the amount included with respect to such gift in determining (for the purposes of section 2503(a)) the total amount of gifts made during the calendar year or period, reduced by the amount of any deduction allowed with respect to such gift under section 2522 (relating to charitable deduction) or under section 2523 (relating to marital deduction).
+
+(3) Gifts treated as made one-half by each spouse For purposes of paragraph (1), where the donor and his spouse elected, under section 2513 to have the gift considered as made one-half by each, the amount of gift tax paid with respect to such gift under chapter 12 shall be the sum of the amounts of tax paid with respect to each half of such gift (computed in the manner provided in paragraph (2)).
+
+(4) Treatment as adjustment to basis For purposes of section 1016(b), an increase in basis under paragraph (1) shall be treated as an adjustment under section 1016(a).
+
+(5) Application to gifts before 1955 With respect to any property acquired by gift before 1955, references in this subsection to any provision of this title shall be deemed to refer to the corresponding provision of the Internal Revenue Code of 1939 or prior revenue laws which was effective for the year in which such gift was made.
+
+(6) Special rule for gifts made after December 31, 1976 (A) In general In the case of any gift made after December 31, 1976, the increase in basis provided by this subsection with respect to any gift for the gift tax paid under chapter 12 shall be an amount (not in excess of the amount of tax so paid) which bears the same ratio to the amount of tax so paid as—
+
+(i) the net appreciation in value of the gift, bears to
+
+(ii) the amount of the gift.
+
+(B) Net appreciation For purposes of paragraph (1), the net appreciation in value of any gift is the amount by which the fair market value of the gift exceeds the donor’s adjusted basis immediately before the gift.
+
+(e) Gifts between spouses In the case of any property acquired by gift in a transfer described in section 1041(a), the basis of such property in the hands of the transferee shall be determined under section 1041(b)(2) and not this section.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 298; Pub. L. 85–866, title I, § 43(a), Sept. 2, 1958, 72 Stat. 1640; Pub. L. 91–614, title I, § 102(d)(1), Dec. 31, 1970, 84 Stat. 1841; Pub. L. 94–455, title XIX, §§ 1901(a)(122), 1906(b) (13)(A), title XX, § 2005(c), Oct. 4, 1976, 90 Stat. 1784, 1834, 1877; Pub. L. 97–34, title IV, § 442(d)(1), Aug. 13, 1981, 95 Stat. 322; Pub. L. 98–369, div. A, title IV, § 421(b)(5), July 18, 1984, 98 Stat. 794.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 2521, referred to in subsec. (d)(2), was repealed by Pub. L. 94–455, title XX, § 2001(b)(3), Oct. 4, 1976, 90 Stat. 1849. The Internal Revenue Code of 1939, referred to in subsec. (d)(5), is act Feb. 10, 1939, ch. 2, 53 Stat. 1. Prior to the enactment of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the 1939 Code was classified to former Title 26, Internal Revenue Code. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title.
+
+Editorial Notes
+
+Amendments1984—Subsec. (e). Pub. L. 98–369 added subsec. (e). 1981—Subsec. (d)(2). Pub. L. 97–34 substituted “calendar year (or preceding calendar period)” for “calendar quarter (or calendar year if the gift was made before January 1, 1971)” and “calendar year or period” for “calendar quarter or year” in two places. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” in four places. Subsec. (d)(1)(A), (B). Pub. L. 94–455, § 1901(a)(122), substituted “September 2, 1958” for “the date of enactment of the Technical Amendments Act of 1958”. Subsec. (d)(6). Pub. L. 94–455, § 2005(c), added par. (6). 1970—Subsec. (d)(2). Pub. L. 91–614 substituted “calendar quarter (or calendar year if the gift was made before January 1, 1971)” for “calendar year” the first place it appears and “calendar quarter or year” for “calendar year” every other place it appears. 1958—Subsec. (d). Pub. L. 85–866 added subsec. (d).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an Effective Date note under section 1041 of this title.
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97–34, set out as a note under section 2501 of this title.
+
+Effective Date of 1976 AmendmentAmendment by section 1901(a)(122) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title. Pub. L. 94–455, title XX, § 2005(f), Oct. 4, 1976, 90 Stat. 1878, as amended by Pub. L. 95–600, title V, § 515(6), Nov. 6, 1978, 92 Stat. 2884, provided that: “(1) Except as provided in paragraph (2), the amendments made by this section [enacting sections 1023, 1040, 6039A, and 6694 of this title, amending sections 691, 1016, and 1246 of this title, and renumbering former section 1023 as 1024] shall apply in respect of decedents dying after December 31, 1979. “(2) The amendment made by subsection (c) [amending this section] shall apply to gifts made after December 31, 1976.”
+
+Effective Date of 1970 AmendmentAmendment by Pub. L. 91–614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91–614, set out as a note under section 2501 of this title.
+
+Effective Date of 1958 AmendmentAmendment by Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.

legal/us/code/title-26/chapter-1/section-1017.md

@@ -0,0 +1,125 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1017"
+description: "Discharge of indebtedness"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1017"
+citation: "26 U.S.C. § 1017"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1017"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "666afebb293c97d548ca34b14e3595fbc85854f1eca94453390876c1200fd903"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "c49076a8dbef75f4e77f9ff37c5cab9c073005e01db69fcbafa7ddc43c863c1c"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1017 - Discharge of indebtedness
+
+## Text
+
+(a) General rule If—
+
+(1) an amount is excluded from gross income under subsection (a) of section 108 (relating to discharge of indebtedness), and
+
+(2) under subsection (b)(2)(E), (b)(5), or (c)(1) of section 108, any portion of such amount is to be applied to reduce basis,
+
+then such portion shall be applied in reduction of the basis of any property held by the taxpayer at the beginning of the taxable year following the taxable year in which the discharge occurs.
+
+(b) Amount and properties determined under regulations (1) In general The amount of reduction to be applied under subsection (a) (not in excess of the portion referred to in subsection (a)), and the particular properties the bases of which are to be reduced, shall be determined under regulations prescribed by the Secretary.
+
+(2) Limitation in title 11 case or insolvency In the case of a discharge to which subparagraph (A) or (B) of section 108(a)(1) applies, the reduction in basis under subsection (a) of this section shall not exceed the excess of—
+
+(A) the aggregate of the bases of the property held by the taxpayer immediately after the discharge, over
+
+(B) the aggregate of the liabilities of the taxpayer immediately after the discharge.
+
+The preceding sentence shall not apply to any reduction in basis by reason of an election under section 108(b)(5).
+
+(3) Certain reductions may only be made in the basis of depreciable property (A) In general Any amount which under subsection (b)(5) or (c)(1) of section 108 is to be applied to reduce basis shall be applied only to reduce the basis of depreciable property held by the taxpayer.
+
+(B) Depreciable property For purposes of this section, the term “depreciable property” means any property of a character subject to the allowance for depreciation, but only if a basis reduction under subsection (a) will reduce the amount of depreciation or amortization which otherwise would be allowable for the period immediately following such reduction.
+
+(C) Special rule for partnership interests For purposes of this section, any interest of a partner in a partnership shall be treated as depreciable property to the extent of such partner’s proportionate interest in the depreciable property held by such partnership. The preceding sentence shall apply only if there is a corresponding reduction in the partnership’s basis in depreciable property with respect to such partner.
+
+(D) Special rule in case of affiliated group For purposes of this section, if—
+
+(i) a corporation holds stock in another corporation (hereinafter in this subparagraph referred to as the “subsidiary”), and
+
+(ii) such corporations are members of the same affiliated group which file a consolidated return under section 1501 for the taxable year in which the discharge occurs,
+
+then such stock shall be treated as depreciable property to the extent that such subsidiary consents to a corresponding reduction in the basis of its depreciable property.
+
+(E) Election to treat certain inventory as depreciable property (i) In general At the election of the taxpayer, for purposes of this section, the term “depreciable property” includes any real property which is described in section 1221(a)(1).
+
+(ii) Election An election under clause (i) shall be made on the taxpayer’s return for the taxable year in which the discharge occurs or at such other time as may be permitted in regulations prescribed by the Secretary. Such an election, once made, may be revoked only with the consent of the Secretary.
+
+(F) Special rules for qualified real property business indebtedness In the case of any amount which under section 108(c)(1) is to be applied to reduce basis—
+
+(i) depreciable property shall only include depreciable real property for purposes of subparagraphs (A) and (C),
+
+(ii) subparagraph (E) shall not apply, and
+
+(iii) in the case of property taken into account under section 108(c)(2)(B), the reduction with respect to such property shall be made as of the time immediately before disposition if earlier than the time under subsection (a).
+
+(4) Special rules for qualified farm indebtedness (A) In general Any amount which under subsection (b)(2)(E) of section 108 is to be applied to reduce basis and which is attributable to an amount excluded under subsection (a)(1)(C) of section 108—
+
+(i) shall be applied only to reduce the basis of qualified property held by the taxpayer, and
+
+(ii) shall be applied to reduce the basis of qualified property in the following order:
+
+(I) First the basis of qualified property which is depreciable property.
+
+(II) Second the basis of qualified property which is land used or held for use in the trade or business of farming.
+
+(III) Then the basis of other qualified property.
+
+(B) Qualified property For purposes of this paragraph, the term “qualified property” has the meaning given to such term by section 108(g)(3)(C).
+
+(C) Certain rules made applicable Rules similar to the rules of subparagraphs (C), (D), and (E) of paragraph (3) shall apply for purposes of this paragraph and section 108(g).
+
+(c) Special rules (1) Reduction not to be made in exempt property In the case of an amount excluded from gross income under section 108(a)(1)(A), no reduction in basis shall be made under this section in the basis of property which the debtor treats as exempt property under section 522 of title 11 of the United States Code.
+
+(2) Reductions in basis not treated as dispositions For purposes of this title, a reduction in basis under this section shall not be treated as a disposition.
+
+(d) Recapture of reductions (1) In general For purposes of sections 1245 and 1250—
+
+(A) any property the basis of which is reduced under this section and which is neither section 1245 property nor section 1250 property shall be treated as section 1245 property, and
+
+(B) any reduction under this section shall be treated as a deduction allowed for depreciation.
+
+(2) Special rule for section 1250 For purposes of section 1250(b), the determination of what would have been the depreciation adjustments under the straight line method shall be made as if there had been no reduction under this section.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 301; Pub. L. 94–455, title XIX, §§ 1906(b)(13)(A), 1951(c)(1), Oct. 4, 1976, 90 Stat. 1834, 1840; Pub. L. 96–589, § 2(b), Dec. 24, 1980, 94 Stat. 3394; Pub. L. 99–514, title IV, § 405(b), title VIII, § 822(b)(4), (5), Oct. 22, 1986, 100 Stat. 2224, 2373; Pub. L. 100–647, title I, § 1004(a)(5), Nov. 10, 1988, 102 Stat. 3386; Pub. L. 101–508, title XI, § 11704(a)(12), Nov. 5, 1990, 104 Stat. 1388–518; Pub. L. 103–66, title XIII, § 13150(c)(6)–(8), Aug. 10, 1993, 107 Stat. 448; Pub. L. 104–188, title I, § 1703(n)(5), Aug. 20, 1996, 110 Stat. 1877; Pub. L. 105–206, title VI, § 6023(11), July 22, 1998, 112 Stat. 825; Pub. L. 106–170, title V, § 532(c)(2)(S), Dec. 17, 1999, 113 Stat. 1931.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1999—Subsec. (b)(3)(E)(i). Pub. L. 106–170 substituted “1221(a)(1)” for “1221(1)”. 1998—Subsec. (a)(2). Pub. L. 105–206 substituted “(b)(2)(E)” for “(b)(2)(D)”. 1996—Subsec. (b)(4)(A). Pub. L. 104–188 substituted “subsection (b)(2)(E)” for “subsection (b)(2)(D)”. 1993—Subsec. (a)(2). Pub. L. 103–66, § 13150(c)(6), substituted “, (b)(5), or (c)(1)” for “or (b)(5)”. Subsec. (b)(3)(A). Pub. L. 103–66, § 13150(c)(7), inserted “or (c)(1)” after “subsection (b)(5)”. Subsec. (b)(3)(F). Pub. L. 103–66, § 13150(c)(8), added subpar. (F). 1990—Subsec. (b)(4)(C). Pub. L. 101–508 substituted “subparagraphs” for “subparagraph”. 1988—Subsec. (b)(4). Pub. L. 100–647 substituted “Special rules for” for “Ordering rule in the case of” in heading, and amended text generally. Prior to amendment, text read as follows: “Any amount which is excluded from gross income under section 108(a) by reason of the discharge of qualified farm indebtedness (within the meaning of section 108(g)(2)) and which under subsection (b) of section 108 is to be applied to reduce basis shall be applied— “(A) first to reduce the tax attributes described in section 108(b)(2) (other than subparagraph (D) thereof), “(B) then to reduce basis of property other than property described in subparagraph (C), and “(C) then to reduce the basis of land used or held for use in the trade or business of farming.” 1986—Subsec. (a)(2). Pub. L. 99–514, § 822(b)(4), substituted “or (b)(5)” for “, (b)(5), or (c)(1)(A)”. Subsec. (b)(3)(A). Pub. L. 99–514, § 822(b)(5), struck out “or (c)(1)(A)” after “subsection (b)(5)”. Subsec. (b)(4). Pub. L. 99–514, § 405(b), added par. (4). 1980—Pub. L. 96–589 generally revised and expanded the section to specify the amount of reduction of basis of property under different subsections of section 108 of this title and the property to which such reduction is applicable, and provided for recapture of reductions for purposes of gains from depreciable property. 1976—Pub. L. 94–455, §§ 1906(b)(13)(A), 1951(c)(1), substituted “section 108” for “section 108(a)” in three places and struck out “or his delegate” after “Secretary”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1999 AmendmentAmendment by Pub. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Pub. L. 106–170, set out as a note under section 170 of this title.
+
+Effective Date of 1996 AmendmentAmendment by Pub. L. 104–188 effective as if included in the provision of the Revenue Reconciliation Act of 1993, Pub. L. 103–66, §§ 13001–13444, to which such amendment relates, see section 1703(o) of Pub. L. 104–188, set out as a note under section 39 of this title.
+
+Effective Date of 1993 AmendmentAmendment by Pub. L. 103–66 applicable to discharges after Dec. 31, 1992, in taxable years ending after such date, see section 13150(d) of Pub. L. 103–66, set out as a note under section 108 of this title.
+
+Effective Date of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
+
+Effective Date of 1986 AmendmentAmendment by section 405(b) of Pub. L. 99–514 applicable to discharges of indebtedness occurring after Apr. 9, 1986, in taxable years ending after such date, see section 405(c) of Pub. L. 99–514, set out as a note under section 108 of this title. Amendment by section 822(b)(4), (5) of Pub. L. 99–514 applicable to discharges after Dec. 31, 1986, see section 822(c) of Pub. L. 99–514, set out as a note under section 108 of this title.
+
+Effective Date of 1980 AmendmentAmendment by Pub. L. 96–589 applicable to transactions which occur after Dec. 31, 1980, other than transactions which occur in a proceeding in a bankruptcy case or similar judicial proceeding or in a proceeding under Title 11 commencing on or after Dec. 31, 1980, with an exception permitting the debtor to make the amendment applicable to transactions occurring after Sept. 30, 1979 in a specified manner, see section 7(a) and (f) of Pub. L. 96–589, set out as a note under section 108 of this title.

legal/us/code/title-26/chapter-1/section-1018.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1018"
+description: "Repealed. Pub. L. 96–589, § 6(h)(1), Dec. 24, 1980, 94 Stat. 3410]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1018"
+citation: "26 U.S.C. § 1018"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1018"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "b512f5dacdf0c2f0ec796fa6faaafaf76e572a781801c42bf675d6c764e1558e"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "80ef9e780c68ffaf8246c498a9589d30b3c66cf47c63bc9ef3aa2e5153e1fe72"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1018 - Repealed. Pub. L. 96–589, § 6(h)(1), Dec. 24, 1980, 94 Stat. 3410]
+
+## Notes
+
+Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 301; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1901(a)(124), 90 Stat. 1784, provided for adjustment of capital structure before Sept. 22, 1938.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal effective Oct. 1, 1979, but not to apply to proceedings under Title 11, Bankruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as an Effective Date of 1980 Amendment note under section 108 of this title.

legal/us/code/title-26/chapter-1/section-1019.md

@@ -0,0 +1,45 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1019"
+description: "Property on which lessee has made improvements"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1019"
+citation: "26 U.S.C. § 1019"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1019"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "e960e84d075aceae8c9cd9c45edbc5a2a5f659f3585d147cda327e0f0e2ae770"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "f60201c30a1bcbf8f6469e2eab94bc8c0b23bf11abe47ec642839d926904c961"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1019 - Property on which lessee has made improvements
+
+## Text
+
+Neither the basis nor the adjusted basis of any portion of real property shall, in the case of the lessor of such property, be increased or diminished on account of income derived by the lessor in respect of such property and excludable from gross income under section 109 (relating to improvements by lessee on lessor’s property).
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 301; Pub. L. 113–295, div. A, title II, § 221(a)(76), Dec. 19, 2014, 128 Stat. 4049.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2014—Pub. L. 113–295 struck out last sentence which read as follows: “If an amount representing any part of the value of real property attributable to buildings erected or other improvements made by a lessee in respect of such property was included in gross income of the lessor for any taxable year beginning before January 1, 1942, the basis of each portion of such property shall be properly adjusted for the amount so included in gross income.”
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

legal/us/code/title-26/chapter-1/section-102.md

@@ -0,0 +1,57 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 102"
+description: "Gifts and inheritances"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "102"
+citation: "26 U.S.C. § 102"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s102"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "6093526b111e3273af4edb36f65045d82ab2dbbaac0b7c758e662b3335d564e3"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "148962a559b17e9c4531e5c1b820dc5f83a75e983fb0bfa89b51ee7d835ffd96"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 102 - Gifts and inheritances
+
+## Text
+
+(a) General rule Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.
+
+(b) Income Subsection (a) shall not exclude from gross income—
+
+(1) the income from any property referred to in subsection (a); or
+
+(2) where the gift, bequest, devise, or inheritance is of income from property, the amount of such income.
+
+Where, under the terms of the gift, bequest, devise, or inheritance, the payment, crediting, or distribution thereof is to be made at intervals, then, to the extent that it is paid or credited or to be distributed out of income from property, it shall be treated for purposes of paragraph (2) as a gift, bequest, devise, or inheritance of income from property. Any amount included in the gross income of a beneficiary under subchapter J shall be treated for purposes of paragraph (2) as a gift, bequest, devise, or inheritance of income from property.
+
+(c) Employee gifts (1) In general Subsection (a) shall not exclude from gross income any amount transferred by or for an employer to, or for the benefit of, an employee.
+
+(2) Cross references For provisions excluding certain employee achievement awards from gross income, see section 74(c). For provisions excluding certain de minimis fringes from gross income, see section 132(e).
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 28; Pub. L. 99–514, title I, § 122(b), Oct. 22, 1986, 100 Stat. 2110.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1986—Subsec. (c). Pub. L. 99–514 added subsec. (c).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to prizes and awards granted after Dec. 31, 1986, see section 151(c) of Pub. L. 99–514, set out as a note under section 1 of this title.

legal/us/code/title-26/chapter-1/section-1020.md

@@ -0,0 +1,33 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1020"
+description: "Repealed. Pub. L. 94–455, title XIX, § 1901(a)(125), Oct. 4, 1976, 90 Stat. 1784]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1020"
+citation: "26 U.S.C. § 1020"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1020"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "0216f1ed01f71cee9ffec4dd476830f9fdc8fdf988cfa34ab99999ec32731ceb"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "bf9143eed59fe868ffd00e6b9cc9f81588651e731e551c3285d46061d302d444"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1020 - Repealed. Pub. L. 94–455, title XIX, § 1901(a)(125), Oct. 4, 1976, 90 Stat. 1784]
+
+## Notes
+
+Section, act Aug. 16, 1954, ch. 736, 68A Stat. 302, related to election to have section 1016(a)(2)(B) of this title apply in respect of periods since Feb. 28, 1913, and before Jan. 1, 1952.

legal/us/code/title-26/chapter-1/section-1021.md

@@ -0,0 +1,35 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1021"
+description: "Sale of annuities"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1021"
+citation: "26 U.S.C. § 1021"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1021"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "c5ca893da5bc3a211bb69f3e6edc23c446a9a22f6ab2f1f0c15234d486475c69"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "868fc08f42e6af98af4769c0ae407e2e0e3c8cb6a613ef71c7901b46ab5f5857"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1021 - Sale of annuities
+
+## Text
+
+In case of the sale of an annuity contract, the adjusted basis shall in no case be less than zero.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 302.)

legal/us/code/title-26/chapter-1/section-1022.md

@@ -0,0 +1,41 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1022"
+description: "Repealed. Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1022"
+citation: "26 U.S.C. § 1022"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1022"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "89d19d3d89ebdd0e3ed39430e111cd64156fba821f889b86e2e98c8236166a8d"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "8b751115edc0e4b533a049407526e26b6a02010f6592fd36732dd7fc0698572a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1022 - Repealed. Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300]
+
+## Notes
+
+Section, added Pub. L. 107–16, title V, § 542(a), June 7, 2001, 115 Stat. 76, related to treatment of property acquired from a decedent dying after Dec. 31, 2009.
+
+A prior section 1022, added Pub. L. 88–272, title II, § 225(j)(1), Feb. 26, 1964, 78 Stat. 92, dealt with the increase in basis with respect to certain foreign personal holding company stock or securities, prior to repeal by Pub. L. 94–455, title XIX, § 1901(a)(126), Oct. 4, 1976, 90 Stat. 1784, applicable with respect to stock or securities acquired from a decedent dying after Oct. 4, 1976.
+
+Another prior section 1022, act Aug. 16, 1954, ch. 736, 68A Stat. 302, relating to cross references, was renumbered section 1023.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal of section applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Pub. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.

legal/us/code/title-26/chapter-1/section-1023.md

@@ -0,0 +1,53 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1023"
+description: "Cross references"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1023"
+citation: "26 U.S.C. § 1023"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1023"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "f1e6ec0639f4754bcd265e233b59bc6a3634fe98f17fec37691cbc9942a7646f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "1b91811bd9e13b6113e90abb516d353e474e3b7ff9925b87120f3226d5611852"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1023 - Cross references
+
+## Text
+
+(1) For certain distributions by a corporation which are applied in reduction of basis of stock, see section 301(c)(2).
+
+(2) For basis in case of construction of new vessels, see chapter 533 of title 46, United States Code.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 302, § 1022; renumbered § 1023, Pub. L. 88–272, title II, § 225(j)(1), Feb. 26, 1964, 78 Stat. 92; renumbered § 1024 and amended Pub. L. 94–455, title XIX, § 1901(a)(127), title XX, § 2005(a)(2), Oct. 4, 1976, 90 Stat. 1784, 1872; renumbered § 1023, Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299; Pub. L. 96–589, § 6(i)(4), Dec. 24, 1980, 94 Stat. 3410; Pub. L. 109–304, § 17(e)(4), Oct. 6, 2006, 120 Stat. 1708.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 1023, added Pub. L. 94–455, title XX, § 2005(a)(2), Oct. 4, 1976, 90 Stat. 1872; amended Pub. L. 95–600, title V, § 515(3), (4), title VII, § 702(c)(2)–(4), (6)–(8), Nov. 6, 1978, 92 Stat. 2884, 2926–2928, related to carryover basis for certain property acquired from a decedent dying after Dec. 31, 1979, prior to repeal by Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299. The repeal was achieved by repealing section 2005(a)(2) of Pub. L. 94–455 and the amendment made thereby, which had enacted prior section 1023.
+
+Amendments2006—Par. (2). Pub. L. 109–304 substituted “chapter 533 of title 46, United States Code” for “section 511 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1161)”. 1980—Pub. L. 96–589 redesignated par. (3) as (2). Former par. (2), which provided reference to sections 670, 796, and 922 of Title 11, Bankruptcy, for basis of property in case of certain reorganizations and arrangements under the Bankruptcy Act, was struck out. 1976—Par. (4). Pub. L. 94–455, § 1901(a)(127), struck out par. (4) which referred to section 405 of the Defense Production Act of 1950 for rules applicable in case of payments in violation of that Act.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1980 Amendment and Revival of Prior LawAmendment by Pub. L. 96–589 effective Oct. 1, 1979, but not to apply to proceedings under Title 11, Bankruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96–589, set out as an Effective Date of 1980 Amendment note under section 108 of this title. Pub. L. 96–223, title IV, § 401(b), Apr. 2, 1980, 94 Stat. 299, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Except to the extent necessary to carry out subsection (d) [set out as a note under section 1014 of this title], the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall be applied and administered as if the provisions repealed by subsection (a), and the amendments made by those provisions [enacting this section and sections 6039A and 6698A of this title, redesignating former section 1023 as section 1024 of this title, and amending sections 306, 691, 1001, 1014, 1016, 1223, and 1246 of this title], had not been enacted.” Pub. L. 96–223, title IV, § 401(e), Apr. 2, 1980, 94 Stat. 301, provided that: “The amendments made by this section [amending sections 306, 691, 1001, 1014, 1016, 1040, 1223, 1246, and 2614 of this title, repealing former section 1023 and sections 6039A and 6698A of this title, redesignating former section 1024 of this title as 1023, and enacting provisions set out as notes under this section and section 1014 of this title] shall apply in respect of decedents dying after December 31, 1976.”
+
+Effective Date of 1976 AmendmentAmendment by section 1901(a)(127) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+RepealsPub. L. 94–455, § 1901(a)(127), cited as a credit to this section, which renumbered this section as section 1024 of this title, was repealed by Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299, resulting in the redesignation of this section as section 1023 of this title. See Effective Date of 1980 Amendments and Revival of Prior Law note set out above.

legal/us/code/title-26/chapter-1/section-1024.md

@@ -0,0 +1,31 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1024"
+description: "Renumbered § 1023]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1024"
+citation: "26 U.S.C. § 1024"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1024"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "e2e67843fc0936d0aa67fd32d10c8f546e0b6ff49c44371a5e7f77661068d072"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "01ba4719c80b6fe911b091a7c05124b64eeece964e09c058ef8f9805daca546b"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1024 - Renumbered § 1023]
+
+

legal/us/code/title-26/chapter-1/section-1032.md

@@ -0,0 +1,49 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1032"
+description: "Exchange of stock for property"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1032"
+citation: "26 U.S.C. § 1032"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1032"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "49069586bcf948a58db8258910af988be6b7a52ab4d24f2e268d5be77b56076e"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "6083295bd2829ccba12e1dc9d2a948d829b5b97570e0e98f4f58bf37a92c8ca0"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1032 - Exchange of stock for property
+
+## Text
+
+(a) Nonrecognition of gain or loss No gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock (including treasury stock) of such corporation. No gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option, or with respect to a securities futures contract (as defined in section 1234B), to buy or sell its stock (including treasury stock).
+
+(b) Basis For basis of property acquired by a corporation in certain exchanges for its stock, see section 362.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 303; Pub. L. 98–369, div. A, title I, § 57(a), July 18, 1984, 98 Stat. 574; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–649.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2000—Subsec. (a). Pub. L. 106–554 inserted “, or with respect to a securities futures contract (as defined in section 1234B),” after “an option” in second sentence. 1984—Subsec. (a). Pub. L. 98–369 inserted provision that no gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option to buy or sell its stock (including treasury stock).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2000 AmendmentPub. L. 106–554, § 1(a)(7) [title IV, § 401(j)], Dec. 21, 2000, 114 Stat. 2763, 2763A–651, provided that: “The amendments made by this section [enacting section 1234B of this title and amending this section and sections 1091, 1092, 1223, 1233, 1234A, 1256 and 7701 of this title] shall take effect on the date of the enactment of this Act [Dec. 21, 2000].”
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 57(b), July 18, 1984, 1984, 98 Stat. 574, provided that: “The amendment made by subsection (a) [amending this section] shall apply to options acquired or lapsed after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.”

legal/us/code/title-26/chapter-1/section-1034.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1034"
+description: "Repealed. Pub. L. 105–34, title III, § 312(b), Aug. 5, 1997, 111 Stat. 839]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1034"
+citation: "26 U.S.C. § 1034"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1034"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "6516800ade9218f90ef03c15c425b2b47e841fa82a24b5c61243e6957fe371a0"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "656c0bb8b0bfa88d7fae72d44c9869b60f40c063f67722570228309067e26d69"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1034 - Repealed. Pub. L. 105–34, title III, § 312(b), Aug. 5, 1997, 111 Stat. 839]
+
+## Notes
+
+Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 306; Sept. 2, 1958, Pub. L. 85–866, title I, § 46(b), 72 Stat. 1642; Feb. 26, 1964, Pub. L. 88–272, title II, § 206(b)(4), 78 Stat. 40; Jan. 2, 1975, Pub. L. 93–597, § 6(a), 88 Stat. 1953; Mar. 29, 1975, Pub. L. 94–12, title II, § 207, 89 Stat. 32; Oct. 4, 1976, Pub. L. 94–455, title XIX, §§ 1901(a)(129), 1906(b)(13)(A), 90 Stat. 1785, 1834; May 23, 1977, Pub. L. 95–30, title I, § 102(b)(13), 91 Stat. 138; Nov. 6, 1978, Pub. L. 95–600, title IV, §§ 404(c)(5), 405(a)–(c)(1), 92 Stat. 2870, 2871; Nov. 8, 1978, Pub. L. 95–615, title II, § 206, 92 Stat. 3107; Aug. 13, 1981, Pub. L. 97–34, title I, §§ 112(b)(4), 122(a), (b), 95 Stat. 195, 197; July 18, 1984, Pub. L. 98–369, div. A, title X, § 1053(a), 98 Stat. 1045; Oct. 22, 1986, Pub. L. 99–514, title XVIII, § 1878(g), 100 Stat. 2904; Nov. 10, 1988, Pub. L. 100–647, title VI, § 6002(a), 102 Stat. 3684, related to rollover of gain on sale of principal residence.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to sales and exchanges after May 6, 1997, with certain exceptions, see section 312(d) of Pub. L. 105–34, set out as an Effective Date of 1997 Amendment note under section 121 of this title.

legal/us/code/title-26/chapter-1/section-1035.md

@@ -0,0 +1,75 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1035"
+description: "Certain exchanges of insurance policies"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1035"
+citation: "26 U.S.C. § 1035"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1035"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "be40fbecc826b0b0af49837f9492242260b6433a656a0843d1a9f77d396b8dbc"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "6ded71e3e9d05ea55e51b40deaad0a946d22c5e54d4832fbf0795bef918fdae3"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1035 - Certain exchanges of insurance policies
+
+## Text
+
+(a) General rules No gain or loss shall be recognized on the exchange of—
+
+(1) a contract of life insurance for another contract of life insurance or for an endowment or annuity contract or for a qualified long-term care insurance contract;
+
+(2) a contract of endowment insurance (A) for another contract of endowment insurance which provides for regular payments beginning at a date not later than the date payments would have begun under the contract exchanged, or (B) for an annuity contract, or (C) for a qualified long-term care insurance contract;
+
+(3) an annuity contract for an annuity contract or for a qualified long-term care insurance contract; or
+
+(4) a qualified long-term care insurance contract for a qualified long-term care insurance contract.
+
+(b) Definitions For the purpose of this section—
+
+(1) Endowment contract A contract of endowment insurance is a contract with an insurance company which depends in part on the life expectancy of the insured, but which may be payable in full in a single payment during his life.
+
+(2) Annuity contract An annuity contract is a contract to which paragraph (1) applies but which may be payable during the life of the annuitant only in installments. For purposes of the preceding sentence, a contract shall not fail to be treated as an annuity contract solely because a qualified long-term care insurance contract is a part of or a rider on such contract.
+
+(3) Life insurance contract A contract of life insurance is a contract to which paragraph (1) applies but which is not ordinarily payable in full during the life of the insured. For purposes of the preceding sentence, a contract shall not fail to be treated as a life insurance contract solely because a qualified long-term care insurance contract is a part of or a rider on such contract.
+
+(c) Exchanges involving foreign persons To the extent provided in regulations, subsection (a) shall not apply to any exchange having the effect of transferring property to any person other than a United States person.
+
+(d) Cross references (1) For rules relating to recognition of gain or loss where an exchange is not solely in kind, see subsections (b) and (c) of section 1031.
+
+(2) For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 309; Pub. L. 98–369, div. A, title II, §§ 211(b)(15), 224(a), July 18, 1984, 98 Stat. 756, 776; Pub. L. 99–514, title XVIII, § 1828, Oct. 22, 1986, 100 Stat. 2851; Pub. L. 105–34, title XI, § 1131(b)(1), Aug. 5, 1997, 111 Stat. 979; Pub. L. 109–280, title VIII, § 844(b), Aug. 17, 2006, 120 Stat. 1010; Pub. L. 115–141, div. U, title IV, § 401(a)(168), Mar. 23, 2018, 132 Stat. 1192.)
+
+## Notes
+
+Editorial Notes
+
+Codification Another section 1131(b) of Pub. L. 105–34 enacted section 684 of this title.
+
+Amendments2018—Subsec. (a)(1). Pub. L. 115–141 struck out “or” after semicolon at end. 2006—Subsec. (a)(1). Pub. L. 109–280, § 844(b)(3)(A), which directed amendment by inserting “or for a qualified long-term care insurance contract” before semicolon “at the end”, was executed by making the insertion before “; or” to reflect the probable intent of Congress. Subsec. (a)(2). Pub. L. 109–280, § 844(b)(3)(B), which directed amendment by inserting “, or (C) for a qualified long-term care insurance contract” before semicolon “at the end”, was executed by making the insertion before “; or” to reflect the probable intent of Congress. Subsec. (a)(3). Pub. L. 109–280, § 844(b)(3)(C), inserted “or for a qualified long-term care insurance contract” after “annuity contract”. Subsec. (a)(4). Pub. L. 109–280, § 844(b)(4), added par. (4). Subsec. (b)(2). Pub. L. 109–280, § 844(b)(1), inserted at end “For purposes of the preceding sentence, a contract shall not fail to be treated as an annuity contract solely because a qualified long-term care insurance contract is a part of or a rider on such contract.” Subsec. (b)(3). Pub. L. 109–280, § 844(b)(2), inserted at end “For purposes of the preceding sentence, a contract shall not fail to be treated as a life insurance contract solely because a qualified long-term care insurance contract is a part of or a rider on such contract.” 1997—Subsecs. (c), (d). Pub. L. 105–34 added subsec. (c) and redesignated former subsec. (c) as (d). 1986—Subsec. (b)(1). Pub. L. 99–514 struck out “subject to tax under subchapter L” after “with an insurance company”. 1984—Subsec. (b)(1). Pub. L. 98–369, § 224(a), which directed the substitution of “an insurance company subject to tax under subchapter L” for “a life insurance company as defined in section 801”, was executed by making such substitution for “a life insurance company as defined in section 816” to reflect the probable intent of Congress and the earlier amendment by Pub. L. 98–369, § 211(b)(15), which substituted “as defined in section 816” for “as defined in section 801”. Pub. L. 98–369, § 211(b)(15), substituted “section 816” for “section 801”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2006 AmendmentAmendment by Pub. L. 109–280 applicable to contracts issued after Dec. 31, 1996, but only with respect to taxable years beginning after Dec. 31, 2009, and to exchanges occurring after Dec. 31, 2009, see section 844(g)(1), (2) of Pub. L. 109–280, set out as a note under section 72 of this title.
+
+Effective Date of 1986 AmendmentAmendment by Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
+
+Effective Date of 1984 AmendmentAmendment by section 211(b)(5) of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an Effective Date note under section 801 of this title. Pub. L. 98–369, div. A, title II, § 224(b), July 18, 1984, 98 Stat. 776, provided that: “The amendment made by subsection (a) [amending this section] shall apply to all exchanges whether before, on, or after the date of the enactment of this Act [July 18, 1984].”
+
+Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

legal/us/code/title-26/chapter-1/section-1036.md

@@ -0,0 +1,51 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1036"
+description: "Stock for stock of same corporation"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1036"
+citation: "26 U.S.C. § 1036"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1036"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "c19914b43e300567fd8a0eb3d292aea56004936f9d57328b51fdc03fbe97f881"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "fb2e653925ae2c3c4fd44e6fa036efbb5d5ab5b7a25999d82974dadbcc5aa67b"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1036 - Stock for stock of same corporation
+
+## Text
+
+(a) General rule No gain or loss shall be recognized if common stock in a corporation is exchanged solely for common stock in the same corporation, or if preferred stock in a corporation is exchanged solely for preferred stock in the same corporation.
+
+(b) Nonqualified preferred stock not treated as stock For purposes of this section, nonqualified preferred stock (as defined in section 351(g)(2)) shall be treated as property other than stock.
+
+(c) Cross references (1) For rules relating to recognition of gain or loss where an exchange is not solely in kind, see subsections (b) and (c) of section 1031.
+
+(2) For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 309; Pub. L. 105–34, title X, § 1014(e)(3), Aug. 5, 1997, 111 Stat. 921.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1997—Subsecs. (b), (c). Pub. L. 105–34 added subsec. (b) and redesignated former subsec. (b) as (c).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1997 AmendmentAmendment by Pub. L. 105–34 applicable, with certain exceptions, to transactions after June 8, 1997, see section 1014(f) of Pub. L. 105–34, set out as a note under section 351 of this title.

legal/us/code/title-26/chapter-1/section-1037.md

@@ -0,0 +1,63 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1037"
+description: "Certain exchanges of United States obligations"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1037"
+citation: "26 U.S.C. § 1037"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1037"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "8cecabb30c93c4170dc92f143b5cb100e387bfade2b87aa58d1001805fde4dd6"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "ab0e1904ba446533f579c1a7150b23ebc3512de12157dca74a22c949469b71a9"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1037 - Certain exchanges of United States obligations
+
+## Text
+
+(a) General rule When so provided by regulations promulgated by the Secretary in connection with the issue of obligations of the United States, no gain or loss shall be recognized on the surrender to the United States of obligations of the United States issued under chapter 31 of title 31 in exchange solely for other obligations issued under such chapter.
+
+(b) Application of original issue discount rules (1) Exchanges involving obligations issued at a discount In any case in which gain has been realized but not recognized because of the provisions of subsection (a) (or so much of section 1031(b) as relates to subsection (a) of this section), to the extent such gain is later recognized by reason of a disposition or redemption of an obligation received in an exchange subject to such provisions, the first sentence of section 1271(c)(2) 11 See References in Text note below. shall apply to such gain as though the obligation disposed of or redeemed were the obligation surrendered to the Government in the exchange rather than the obligation actually disposed of or redeemed. For purposes of this paragraph and subpart A of part V of subchapter P, if the obligation surrendered in the exchange is a nontransferable obligation described in subsection (a) or (c) of section 454—
+
+(A) the aggregate amount considered, with respect to the obligation surrendered, as ordinary income shall not exceed the difference between the issue price and the stated redemption price which applies at the time of the exchange, and
+
+(B) the issue price of the obligation received in the exchange shall be considered to be the stated redemption price of the obligation surrendered in the exchange, increased by the amount of other consideration (if any) paid to the United States as a part of the exchange.
+
+(2) Exchanges of transferable obligations issued at not less than par In any case in which subsection (a) (or so much of section 1031(b) or (c) as relates to subsection (a) of this section) has applied to the exchange of a transferable obligation which was issued at not less than par for another transferable obligation, the issue price of the obligation received from the Government in the exchange shall be considered for purposes of applying subpart A of part V of subchapter P to be the same as the issue price of the obligation surrendered to the Government in the exchange, increased by the amount of other consideration (if any) paid to the United States as a part of the exchange.
+
+(c) Cross references (1) For rules relating to the recognition of gain or loss in a case where subsection (a) would apply except for the fact that the exchange was not made solely for other obligations of the United States, see subsections (b) and (c) of section 1031.
+
+(2) For rules relating to the basis of obligations of the United States acquired in an exchange for other obligations described in subsection (a), see subsection (d) of section 1031.
+
+(Added Pub. L. 86–346, title II, § 201(a), Sept. 22, 1959, 73 Stat. 622; amended Pub. L. 94–455, title XIX, § 1901(a)(130), (b)(3)(I), Oct. 4, 1976, 90 Stat. 1786, 1793; Pub. L. 97–452, § 2(c)(3), Jan. 12, 1983, 96 Stat. 2478; Pub. L. 98–369, div. A, title I, § 42(a)(11), July 18, 1984, 98 Stat. 557.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 1271(c), referred to in subsec. (b)(1), was repealed and section 1271(d) redesignated section 1271(c) by Pub. L. 115–141, div. U, title IV, § 401(c)(1)(A)(i), Mar. 23, 2018, 132 Stat. 1205.
+
+Amendments1984—Subsec. (b). Pub. L. 98–369, § 42(a)(11)(C), substituted “original issue discount rules” for “section 1232” in heading. Subsec. (b)(1). Pub. L. 98–369, § 42(a)(11)(A), (B), substituted “section 1271(c)(2)” for “section 1232(a)(2)(B)”, and “subpart A of part V of subchapter P” for “section 1232”. Subsec. (b)(2). Pub. L. 98–369, § 42(a)(11)(B), substituted “subpart A of part V of subchapter P” for “section 1232”. 1983—Subsec. (a). Pub. L. 97–452 substituted “chapter 31 of title 31” and “chapter” for “the Second Liberty Bond Act” and “Act”, respectively. 1976—Subsec. (b)(1). Pub. L. 94–455 substituted in introductory provisions “section 1232(a)(2)(B)” for “section 1232(a)(2)(A)” and in subpar. (A) “ordinary income” for “gain from the sale or exchange of property which is not a capital asset”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to taxable years ending after July 18, 1984, see section 44 of Pub. L. 98–369, set out as an Effective Date note under section 1271 of this title.
+
+Effective Date of 1976 AmendmentAmendment by Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective DatePub. L. 86–346, title II, § 203, Sept. 22, 1959, 73 Stat. 624, provided that: “The amendments made by this title [enacting this section and amending section 1031 of this title and section 742a of former Title 31, Money and Finance] shall be effective for taxable years ending after the date of enactment of this Act [Sept. 22, 1959].”

legal/us/code/title-26/chapter-1/section-1038.md

@@ -0,0 +1,105 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1038"
+description: "Certain reacquisitions of real property"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1038"
+citation: "26 U.S.C. § 1038"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1038"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "b7b2fe92de8493c25973e3331ef17d8616b02f5e17ea08bd2779009a556ad1f9"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "58166a3a2bbc8b9cdf91bce7334d8407fcf089c82b2624908f215ed2347a3eca"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1038 - Certain reacquisitions of real property
+
+## Text
+
+(a) General rule If—
+
+(1) a sale of real property gives rise to indebtedness to the seller which is secured by the real property sold, and
+
+(2) the seller of such property reacquires such property in partial or full satisfaction of such indebtedness,
+
+then, except as provided in subsections (b) and (d), no gain or loss shall result to the seller from such reacquisition, and no debt shall become worthless or partially worthless as a result of such reacquisition.
+
+(b) Amount of gain resulting (1) In general In the case of a reacquisition of real property to which subsection (a) applies, gain shall result from such reacquisition to the extent that—
+
+(A) the amount of money and the fair market value of other property (other than obligations of the purchaser) received, prior to such reacquisition, with respect to the sale of such property, exceeds
+
+(B) the amount of the gain on the sale of such property returned as income for periods prior to such reacquisition.
+
+(2) Limitation The amount of gain determined under paragraph (1) resulting from a reacquisition during any taxable year beginning after the date of the enactment of this section shall not exceed the amount by which the price at which the real property was sold exceeded its adjusted basis, reduced by the sum of—
+
+(A) the amount of the gain on the sale of such property returned as income for periods prior to the reacquisition of such property, and
+
+(B) the amount of money and the fair market value of other property (other than obligations of the purchaser received with respect to the sale of such property) paid or transferred by the seller in connection with the reacquisition of such property.
+
+For purposes of this paragraph, the price at which real property is sold is the gross sales price reduced by the selling commissions, legal fees, and other expenses incident to the sale of such property which are properly taken into account in determining gain or loss on such sale.
+
+(3) Gain recognized Except as provided in this section, the gain determined under this subsection resulting from a reacquisition to which subsection (a) applies shall be recognized, notwithstanding any other provision of this subtitle.
+
+(c) Basis of reacquired real property If subsection (a) applies to the reacquisition of any real property, the basis of such property upon such reacquisition shall be the adjusted basis of the indebtedness to the seller secured by such property (determined as of the date of reacquisition), increased by the sum of—
+
+(1) the amount of the gain determined under subsection (b) resulting from such reacquisition, and
+
+(2) the amount described in subsection (b)(2)(B).
+
+If any indebtedness to the seller secured by such property is not discharged upon the reacquisition of such property, the basis of such indebtedness shall be zero.
+
+(d) Indebtedness treated as worthless prior to reacquisition If, prior to a reacquisition of real property to which subsection (a) applies, the seller has treated indebtedness secured by such property as having become worthless or partially worthless—
+
+(1) such seller shall be considered as receiving, upon the reacquisition of such property, an amount equal to the amount of such indebtedness treated by him as having become worthless, and
+
+(2) the adjusted basis of such indebtedness shall be increased (as of the date of reacquisition) by an amount equal to the amount so considered as received by such seller.
+
+(e) Principal residences If—
+
+(1) subsection (a) applies to a reacquisition of real property with respect to the sale of which gain was not recognized under section 121 (relating to gain on sale of principal residence); and
+
+(2) within 1 year after the date of the reacquisition of such property by the seller, such property is resold by him,
+
+then, under regulations prescribed by the Secretary, subsections (b), (c), and (d) of this section shall not apply to the reacquisition of such property and, for purposes of applying section 121, the resale of such property shall be treated as a part of the transaction constituting the original sale of such property.
+
+[(f) Repealed. Pub. L. 104–188, title I, § 1616(b)(12), Aug. 20, 1996, 110 Stat. 1857]
+
+(g) Acquisition by estate, etc., of seller Under regulations prescribed by the Secretary, if an installment obligation is indebtedness to the seller which is described in subsection (a), and if such obligation is, in the hands of the taxpayer, an obligation with respect to which section 691(a)(4)(B) applies, then—
+
+(1) for purposes of subsection (a), acquisition of real property by the taxpayer shall be treated as reacquisition by the seller, and
+
+(2) the basis of the real property acquired by the taxpayer shall be increased by an amount equal to the deduction under section 691(c) which would (but for this subsection) have been allowable to the taxpayer with respect to the gain on the exchange of the obligation for the real property.
+
+(Added Pub. L. 88–570, § 2(a), Sept. 2, 1964, 78 Stat. 854; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–600, title IV, §§ 404(c)(6), 405(c)(3), Nov. 6, 1978, 92 Stat. 2870, 2871; Pub. L. 96–471, § 4, Oct. 19, 1980, 94 Stat. 2255; Pub. L. 104–188, title I, § 1616(b)(12), Aug. 20, 1996, 110 Stat. 1857; Pub. L. 105–34, title III, § 312(d)(8), Aug. 5, 1997, 111 Stat. 840.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1997—Subsec. (e). Pub. L. 105–34 amended heading and text of subsec. (e) generally. Prior to amendment, text read as follows: “If— “(1) subsection (a) applies to a reacquisition of real property with respect to the sale of which— “(A) an election under section 121 (relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55) is in effect, or “(B) gain was not recognized under section 1034 (relating to rollover of gain on sale of principal residence); and “(2) within one year after the date of the reacquisition of such property by the seller, such property is resold by him, then, under regulations prescribed by the Secretary, subsections (b), (c), and (d) of this section shall not apply to the reacquisition of such property and, for purposes of applying sections 121 and 1034, the resale of such property shall be treated as a part of the transaction constituting the original sale of such property.” 1996—Subsec. (f). Pub. L. 104–188 struck out subsec. (f) which read as follows: “(f) Reacquisitions by Domestic Building and Loan Associations.—This section shall not apply to a reacquisition of real property by an organization described in section 593(a) (relating to domestic building and loan associations, etc.).” 1980—Subsec. (g). Pub. L. 96–471 added subsec. (g). 1978—Subsec. (e)(1)(A). Pub. L. 95–600, § 404(c)(6), substituted “relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55” for “relating to gain from sale or exchange of residence of an individual who has attained age 65”. Subsec. (e)(1)(B). Pub. L. 95–600, § 405(c)(3), which directed the amendment of section 1083(e)(1)(B) of this title by substituting “(relating to rollover of gain on sale of principal residence)” for “(relating to sale or exchange of residence)”, was executed to this section to reflect the probable intent of Congress because section 1083 does not contain a subsec. (e)(1)(B). 1976—Subsec. (e). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1997 AmendmentAmendment by Pub. L. 105–34 applicable to sales and exchanges after May 6, 1997, with certain exceptions, see section 312(d) of Pub. L. 105–34, set out as a note under section 121 of this title.
+
+Effective Date of 1996 AmendmentAmendment by Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1995, see section 1616(c) of Pub. L. 104–188, set out as a note under section 593 of this title.
+
+Effective Date of 1980 AmendmentPub. L. 96–471, § 6(c), Oct. 19, 1980, 94 Stat. 2256, provided: “The amendment made by section 4 [amending this section] shall apply to acquisitions of real property by the taxpayer after the date of the enactment of this Act [Oct. 19, 1980].”
+
+Effective Date of 1978 AmendmentAmendment by section 404(c)(6) of Pub. L. 95–600 applicable to sales or exchanges after July 26, 1978, in taxable years ending after such date, see section 404(d)(1) of Pub. L. 95–600, set out as a note under section 121 of this title. Pub. L. 95–600, title IV, § 405(d), Nov. 6, 1978, 92 Stat. 2871, provided that: “The amendments made by this section [amending this section and sections 1034, 1250, 6212, and 6504 of this title] shall apply to sales and exchanges of residences after July 26, 1978, in taxable years ending after such date.”
+
+Effective Date; Election To Apply to Taxable Years Beginning After Dec. 31, 1957Pub. L. 88–570, § 2(c), Sept. 2, 1964, 78 Stat. 856, provided that: “(1) The amendments made by this section [enacting this section] shall apply to taxable years beginning after the date of the enactment of this Act [Sept. 2, 1964]. “(2) If the taxpayer makes an election under this paragraph, the amendments made by this section [enacting this section] shall also apply to taxable years beginning after December 31, 1957, except that such amendments shall not apply with respect to any reacquisition of real property in a taxable year for which the assessment of a deficiency, or the credit or refund of an overpayment, is prevented on the date of the enactment of this Act [Sept. 2, 1964] by the operation of any law or rule of law. An election under this paragraph shall be made within one year after the date of the enactment of this Act and shall be made in such form and manner as the Secretary of the Treasury or his delegate shall prescribe by regulations. “(3) If an election is made by the taxpayer under paragraph (2), and if the assessment of a deficiency, or the credit or refund of an overpayment, for any taxable year to which such election applies is not prevented on the date of the enactment of this Act [Sept. 2, 1964] by the operation of any law or rule of law—“(A) the period within which a deficiency for such taxable year may be assessed (to the extent such deficiency is attributable to the application of the amendments made by this section) shall not expire prior to one year after the date of such election; and “(B) the period within which a claim for credit or refund of an overpayment for such taxable year may be filed (to the extent such overpayment is attributable to the application of such amendments) shall not expire prior to one year after the date of such election. No interest shall be payable with respect to any deficiency attributable to the application of such amendments, and no interest shall be allowed with respect to any credit or refund of any overpayment attributable to the application of such amendments, for any period prior to the date of the enactment of this Act. An election by a taxpayer under paragraph (2) shall be deemed a consent to the application of this paragraph.”

legal/us/code/title-26/chapter-1/section-1039.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1039"
+description: "Repealed. Pub. L. 101–508, title XI, § 11801(a)(33), Nov. 5, 1990, 104 Stat. 1388–521]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1039"
+citation: "26 U.S.C. § 1039"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1039"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "43e3cfcb7309ad0c33de3786b8cf157b913fb0d1547a1d0325192fbf289da464"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "89a8f12c31c11a52dee4af173e3b757b0d8908c57166379d176b98326734e138"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1039 - Repealed. Pub. L. 101–508, title XI, § 11801(a)(33), Nov. 5, 1990, 104 Stat. 1388–521]
+
+## Notes
+
+Section, added Pub. L. 91–172, title IX, § 910(a), Dec. 30, 1969, 83 Stat. 718; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to the recognition of gain on certain sales of low-income housing projects.
+
+Statutory Notes and Related Subsidiaries
+
+Savings ProvisionFor provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

legal/us/code/title-26/chapter-1/section-103a.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 103A"
+description: "Repealed. Pub. L. 99–514, title XIII, § 1301(j)(1), Oct. 22, 1986, 100 Stat. 2657]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "103A"
+citation: "26 U.S.C. § 103A"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s103A"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "98f357b0439a5c6d789f63d2e5e4a78ee751db3cf6c2b16c3679083dfe2b2e24"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "a7196e52f8bb95547c70e442926d293bf299650918d756b52fc37a627d164a66"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 103A - Repealed. Pub. L. 99–514, title XIII, § 1301(j)(1), Oct. 22, 1986, 100 Stat. 2657]
+
+## Notes
+
+Section, added Pub. L. 96–499, title XI, § 1102(a), Dec. 5, 1980, 94 Stat. 2660; amended Pub. L. 96–595, § 5(a), (b), Dec. 24, 1980, 94 Stat. 3467; Pub. L. 97–248, title II, § 220(a)–(e), title III, § 310(c)(3), (4), Sept. 3, 1982, 96 Stat. 475, 476, 599; Pub. L. 98–369, div. A, title I, § 42(a)(2), title VI, §§ 611(a)–(c), 612(b), 624(b)(1), July 18, 1984, 98 Stat. 556, 901–903, 911, 924; Pub. L. 99–514, title XVIII, § 1861, Oct. 22, 1986, 100 Stat. 2883, related to mortgage subsidy bonds. See section 143 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 of Pub. L. 99–514, set out as an Effective Date; Transitional Rules note under section 141 of this title.

legal/us/code/title-26/chapter-1/section-104.md

@@ -0,0 +1,127 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 104"
+description: "Compensation for injuries or sickness"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "104"
+citation: "26 U.S.C. § 104"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s104"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "e008067c5c6f20f46b2709603f033a33c95fcf2d1032c7527ae5d45992f116ef"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "3022348a804b3544e3d3ff866161eb5c58e8cdbd98e12d7a6e6ca0adab74f8c9"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 104 - Compensation for injuries or sickness
+
+## Text
+
+(a) In general Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include—
+
+(1) amounts received under workmen’s compensation acts as compensation for personal injuries or sickness;
+
+(2) the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal physical injuries or physical sickness;
+
+(3) amounts received through accident or health insurance (or through an arrangement having the effect of accident or health insurance) for personal injuries or sickness (other than amounts received by an employee, to the extent such amounts (A) are attributable to contributions by the employer which were not includible in the gross income of the employee, or (B) are paid by the employer);
+
+(4) amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country or in the Coast and Geodetic Survey or the Public Health Service, or as a disability annuity payable under the provisions of section 808 of the Foreign Service Act of 1980;
+
+(5) amounts received by an individual as disability income attributable to injuries incurred as a direct result of a terroristic or military action (as defined in section 692(c)(2)); and
+
+(6) amounts received pursuant to—
+
+(A) section 1201 of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796); 11 See References in Text note below. or
+
+(B) a program established under the laws of any State which provides monetary compensation for surviving dependents of a public safety officer who has died as the direct and proximate result of a personal injury sustained in the line of duty,
+
+except that subparagraph (B) shall not apply to any amounts that would have been payable if death of the public safety officer had occurred other than as the direct and proximate result of a personal injury sustained in the line of duty.
+
+For purposes of paragraph (3), in the case of an individual who is, or has been, an employee within the meaning of section 401(c)(1) (relating to self-employed individuals), contributions made on behalf of such individual while he was such an employee to a trust described in section 401(a) which is exempt from tax under section 501(a), or under a plan described in section 403(a), shall, to the extent allowed as deductions under section 404, be treated as contributions by the employer which were not includible in the gross income of the employee. For purposes of paragraph (2), emotional distress shall not be treated as a physical injury or physical sickness. The preceding sentence shall not apply to an amount of damages not in excess of the amount paid for medical care (described in subparagraph (A) or (B) of section 213(d)(1)) attributable to emotional distress.
+
+(b) Termination of application of subsection (a)(4) in certain cases (1) In general Subsection (a)(4) shall not apply in the case of any individual who is not described in paragraph (2).
+
+(2) Individuals to whom subsection (a)(4) continues to apply An individual is described in this paragraph if—
+
+(A) on or before September 24, 1975, he was entitled to receive any amount described in subsection (a)(4),
+
+(B) on September 24, 1975, he was a member of any organization (or reserve component thereof) referred to in subsection (a)(4) or under a binding written commitment to become such a member,
+
+(C) he receives an amount described in subsection (a)(4) by reason of a combat-related injury, or
+
+(D) on application therefor, he would be entitled to receive disability compensation from the Department of Veterans Affairs.
+
+(3) Special rules for combat-related injuries For purposes of this subsection, the term “combat-related injury” means personal injury or sickness—
+
+(A) which is incurred—
+
+(i) as a direct result of armed conflict,
+
+(ii) while engaged in extrahazardous service, or
+
+(iii) under conditions simulating war; or
+
+(B) which is caused by an instrumentality of war.
+
+In the case of an individual who is not described in subparagraph (A) or (B) of paragraph (2), except as provided in paragraph (4), the only amounts taken into account under subsection (a)(4) shall be the amounts which he receives by reason of a combat-related injury.
+
+(4) Amount excluded to be not less than veterans’ disability compensation In the case of any individual described in paragraph (2), the amounts excludable under subsection (a)(4) for any period with respect to any individual shall not be less than the maximum amount which such individual, on application therefor, would be entitled to receive as disability compensation from the Veterans’ Administration.
+
+(c) Application of prior law in certain cases The phrase “(other than punitive damages)” shall not apply to punitive damages awarded in a civil action—
+
+(1) which is a wrongful death action, and
+
+(2) with respect to which applicable State law (as in effect on September 13, 1995 and without regard to any modification after such date) provides, or has been construed to provide by a court of competent jurisdiction pursuant to a decision issued on or before September 13, 1995, that only punitive damages may be awarded in such an action.
+
+This subsection shall cease to apply to any civil action filed on or after the first date on which the applicable State law ceases to provide (or is no longer construed to provide) the treatment described in paragraph (2).
+
+(d) Cross references (1) For exclusion from employee’s gross income of employer contributions to accident and health plans, see section 106.
+
+(2) For exclusion of part of disability retirement pay from the application of subsection (a)(4) of this section, see section 1403 of title 10, United States Code (relating to career compensation laws).
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 30; Pub. L. 86–723, § 51, Sept. 8, 1960, 74 Stat. 847; Pub. L. 87–792, § 7(d), Oct. 10, 1962, 76 Stat. 829; Pub. L. 94–455, title V, § 505(b), (e)(1), title XIX, § 1901(a)(18), Oct. 4, 1976, 90 Stat. 1567, 1568, 1766; Pub. L. 96–465, title II, § 2206(e)(1), Oct. 17, 1980, 94 Stat. 2162; Pub. L. 97–473, title I, § 101(a), Jan. 14, 1983, 96 Stat. 2605; Pub. L. 101–239, title VII, § 7641(a), Dec. 19, 1989, 103 Stat. 2379; Pub. L. 104–188, title I, § 1605(a)–(c), Aug. 20, 1996, 110 Stat. 1838; Pub. L. 104–191, title III, § 311(b), Aug. 21, 1996, 110 Stat. 2053; Pub. L. 107–134, title I, § 113(a), Jan. 23, 2002, 115 Stat. 2435; Pub. L. 114–14, § 2, May 22, 2015, 129 Stat. 198; Pub. L. 115–141, div. U, title IV, § 401(a)(2)(A), Mar. 23, 2018, 132 Stat. 1184.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 808 of the Foreign Service Act of 1980, referred to in subsec. (a)(4), is Pub. L. 96–465, title I, § 808, Oct. 17, 1980, 94 Stat. 2110, which is classified to section 4048 of Title 22, Foreign Relations and Intercourse. Section 1201 of the Omnibus Crime Control and Safe Streets Act of 1968, referred to in subsec. (a)(6)(A), was classified to section 3796 of Title 42, The Public Health and Welfare, prior to editorial reclassification and renumbering as section 10281 of Title 34, Crime Control and Law Enforcement.
+
+Amendments2018—Subsec. (b)(2)(D). Pub. L. 115–141 substituted “Department of Veterans Affairs” for “Veterans’ Administration”. 2015—Subsec. (a)(6). Pub. L. 114–14 added par. (6). 2002—Subsec. (a)(5). Pub. L. 107–134 substituted “a terroristic or military action (as defined in section 692(c)(2)).” for “a violent attack which the Secretary of State determines to be a terrorist attack and which occurred while such individual was an employee of the United States engaged in the performance of his official duties outside the United States.” 1996—Subsec. (a). Pub. L. 104–188, § 1605(b), in closing provisions, substituted “For purposes of paragraph (2), emotional distress shall not be treated as a physical injury or physical sickness. The preceding sentence shall not apply to an amount of damages not in excess of the amount paid for medical care (described in subparagraph (A) or (B) of section 213(d)(1)) attributable to emotional distress.” for “Paragraph (2) shall not apply to any punitive damages in connection with a case not involving physical injury or physical sickness.” Subsec. (a)(2). Pub. L. 104–188, § 1605(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “the amount of any damages received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or sickness;”. Subsec. (a)(3). Pub. L. 104–191 inserted “(or through an arrangement having the effect of accident or health insurance)” after “accident or health insurance”. Subsecs. (c), (d). Pub. L. 104–188, § 1605(c), added subsec. (c) and redesignated former subsec. (c) as (d). 1989—Subsec. (a). Pub. L. 101–239 inserted at end “Paragraph (2) shall not apply to any punitive damages in connection with a case not involving physical injury or physical sickness.” 1983—Subsec. (a)(2). Pub. L. 97–473 substituted “whether by suit or agreement and whether as lump sums or as periodic payments” for “whether by suit or agreement”. 1980—Subsec. (a)(4). Pub. L. 96–465 substituted reference to section 808 of the Foreign Service Act of 1980 for reference to section 831 of the Foreign Service Act of 1946. 1976—Subsec. (a)(4). Pub. L. 94–455, § 1901(a)(18)(A), struck out “; 60 Stat. 1021” after “(22 U.S.C. 1081”. Subsec. (a)(5). Pub. L. 94–455, § 505(e)(1), added par. (5). Subsecs. (b), (c). Pub. L. 94–455, § 505(b), added subsec. (b), redesignated former subsec. (b) as (c) and, as so redesignated, § 1901(a)(18)(B), substituted “1403 of title 10, United States Code (relating to career compensation laws)” for “402(h) of the Career Compensation Act of 1949 (37 U.S.C. 272(h))”. 1962—Subsec. (a). Pub. L. 87–792 inserted sentence requiring contributions made on behalf of an individual who is, or has been, an employee within the meaning of section 401(c)(1), while he was such an employee to a trust which is exempt from tax, or under a plan described in section 403(a), to be treated as contributions by the employer which were not includible in the gross income of the employee. 1960—Subsec. (a)(4). Pub. L. 86–723 provided for exclusion from gross income of amounts received as a disability annuity payable under the provisions of section 831 of the Foreign Service Act of 1946, as amended.
+
+Statutory Notes and Related Subsidiaries
+
+Change of Name Reference to Veterans’ Administration deemed to refer to Department of Veterans Affairs pursuant to section 10 of Pub. L. 100–527, set out as a Department of Veterans Affairs Act note under section 301 of Title 38, Veterans’ Benefits. Secretary of Health, Education, and Welfare redesignated Secretary of Health and Human Services by section 3508 of Title 20, Education.
+
+Effective Date of 2002 AmendmentPub. L. 107–134, title I, § 113(c), Jan. 23, 2002, 115 Stat. 2435, provided that: “The amendments made by this section [amending this section and section 692 of this title] shall apply to taxable years ending on or after September 11, 2001.”
+
+Effective Date of 1996 AmendmentPub. L. 104–191, title III, § 311(c), Aug. 21, 1996, 110 Stat. 2053, provided that: “The amendments made by this section [amending this section and section 162 of this title] shall apply to taxable years beginning after December 31, 1996.” Pub. L. 104–188, title I, § 1605(d), Aug. 20, 1996, 110 Stat. 1839, provided that: “(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to amounts received after the date of the enactment of this Act [Aug. 20, 1996], in taxable years ending after such date. “(2) Exception.—The amendments made by this section shall not apply to any amount received under a written binding agreement, court decree, or mediation award in effect on (or issued on or before) September 13, 1995.”
+
+Effective Date of 1989 AmendmentPub. L. 101–239, title VII, § 7641(b), Dec. 19, 1989, 103 Stat. 2379, provided that: “(1) In general.—Except as provided in paragraph (2), the amendment made by subsection (a) [amending this section] shall apply to amounts received after July 10, 1989, in taxable years ending after such date. “(2) Exception.—The amendment made by subsection (a) shall not apply to any amount received—“(A) under any written binding agreement, court decree, or mediation award in effect on (or issued on or before) July 10, 1989, or “(B) pursuant to any suit filed on or before July 10, 1989.”
+
+Effective Date of 1980 AmendmentAmendment by Pub. L. 96–465 effective Feb. 15, 1981, except as otherwise provided, see section 2403 of Pub. L. 96–465, set out as an Effective Date note under section 3901 of Title 22, Foreign Relations and Intercourse.
+
+Effective Date of 1976 AmendmentAmendment by section 505(b) of Pub. L. 94–455 applicable to taxable years beginning after Dec. 31, 1975, see section 508 of Pub. L. 94–455, set out as a note under section 3 of this title. Pub. L. 94–455, title V, § 505(e)(2), Oct. 4, 1976, 90 Stat. 1568, provided that: “The amendments made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 1976.” Amendment by section 1901(a)(18)(A) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective Date of 1962 AmendmentAmendment by Pub. L. 87–792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87–792, set out as a note under section 22 of this title.
+
+Effective Date of 1960 AmendmentPub. L. 86–723, § 56(e), Sept. 8, 1960, 74 Stat. 848, provided that: “The amendment made by section 51 of this Act [amending this section] shall be effective with respect to taxable years ending after the date of enactment of this Act [Sept. 8, 1960].”
+
+Executive Documents
+
+Change of Name Coast and Geodetic Survey consolidated with National Weather Bureau in 1965 to form Environmental Science Services Administration by Reorg. Plan No. 2 of 1965, eff. July 13, 1965, 30 FR 8819, 79 Stat. 1318. Environmental Science Services Administration abolished in 1970 and its personnel, property, records, etc., transferred to National Oceanic and Atmospheric Administration by Reorg. Plan No. 4 of 1970, eff. Oct. 3, 1970, 35 FR 15627, 84 Stat. 2090. By order of Acting Associate Administrator of National Oceanic and Atmospheric Administration, 35 FR 19249, Dec. 19, 1970, Coast and Geodetic Survey redesignated National Ocean Survey. See notes under section 311 of Title 15, Commerce and Trade.
+
+Transfer of Functions Functions of Public Health Service, Surgeon General of Public Health Service, and all other officers and employees of Public Health Service, and functions of all agencies of or in Public Health Service transferred to Secretary of Health, Education, and Welfare by 1966 Reorg. Plan No. 3, 31 F.R. 8855, 80 Stat. 1610, effective June 25, 1966, set out in the Appendix to Title 5, Government Organization and Employees.

legal/us/code/title-26/chapter-1/section-1040.md

@@ -0,0 +1,61 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1040"
+description: "Transfer of certain farm, etc., real property"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1040"
+citation: "26 U.S.C. § 1040"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1040"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "622fda1877dea8d49c8f77f0a88089c44d1311b5dd5a24d25ae2ffa3afec90b1"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "7c5a53ad21d3b06db987d02cf0d86d27191b8320ea16e1dd9bc95684f9f18ef2"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1040 - Transfer of certain farm, etc., real property
+
+## Text
+
+(a) General rule If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A).
+
+(b) Similar rule for certain trusts To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A.
+
+(c) Basis of property acquired in transfer described in subsection (a) or (b) The basis of property acquired in a transfer with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.
+
+(Added Pub. L. 94–455, title XX, § 2005(b), Oct. 4, 1976, 90 Stat. 1877; amended Pub. L. 95–600, title VII, § 702(d)(3), Nov. 6, 1978, 92 Stat. 2929; Pub. L. 96–222, title I, § 105(a)(5)(A), Apr. 1, 1980, 94 Stat. 219; Pub. L. 96–223, title IV, § 401(c)(2)(A), Apr. 2, 1980, 94 Stat. 300; Pub. L. 97–34, title IV, § 421(j)(2)(B), Aug. 13, 1981, 95 Stat. 312; Pub. L. 97–448, title I, § 104(b)(3)(A), (B), Jan. 12, 1983, 96 Stat. 2381; Pub. L. 107–16, title V, § 542(d)(1), June 7, 2001, 115 Stat. 84; Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2010—Pub. L. 111–312 amended section to read as if amendment by Pub. L. 107–16, § 542(d)(1), had never been enacted. See 2001 Amendment note below. 2001—Pub. L. 107–16, § 542(d)(1), amended section generally. Prior to amendment, text read as follows: “(a) General rule.—If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A). “(b) Similar rule for certain trusts.—To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A. “(c) Basis of property acquired in transfer described in subsection (a) or (b).—The basis of property acquired in a transfer with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.” 1983—Subsec. (a). Pub. L. 97–448, § 104(b)(3)(A), substituted “on the date of such transfer” for “on the date of such exchange”. Subsec. (c). Pub. L. 97–448, § 104(b)(3)(B), substituted references to “transfer”, “a transfer”, and “the transfer” for references to “exchange”, “an exchange”, and “the exchange”, respectively, wherever appearing in heading and text. 1981—Pub. L. 97–34 substituted “Transfer of certain farm, etc., real property” for “Use of farm, etc., real property to satisfy pecuniary bequest” in section catchline. Subsec. (a). Pub. L. 97–34 revised subsec. (a) generally, substituting “transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property” for “satisfies the right of a qualified heir (within the meaning of section 2032A(e)(1)) to receive a pecuniary bequest with property” and “such transfer” for “such exchange” before “shall be recognized”. Subsec. (b). Pub. L. 97–34 substituted “shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A” for “shall apply where— “(1) by reason of the death of the decedent, a qualified heir has a right to receive from a trust a specific dollar amount which is the equivalent of a pecuniary bequest, and “(2) the trustee of the trust satisfies such right with property with respect to which an election was made under section 2032A”. 1980—Pub. L. 96–223 substituted “Use of farm, etc., property to satisfy pecuniary bequest” for “Use of certain appreciated carryover basis property to satisfy pecuniary request” in section catchline, generally revised subsecs. (a) and (b) to reflect the repeal elsewhere in the Code of carryover basis provisions, and struck out subsec. (d) which had provided that, for purposes of this section, references to carryover basis property should be treated as including a reference to property the valuation of which is determined under section 2032A. Pub. L. 96–222 added subsec. (d). 1978—Subsec. (a). Pub. L. 95–600 substituted “chapter 11 (determined without regard to section 2032A)” for “chapter 11”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2010 AmendmentAmendment by Pub. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Pub. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.
+
+Effective Date of 2001 AmendmentAmendment by Pub. L. 107–16 applicable to estates of decedents dying after Dec. 31, 2009, see section 542(f)(1) of Pub. L. 107–16, set out as a note under section 121 of this title.
+
+Effective Date of 1983 AmendmentAmendment by Pub. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97–34, to which such amendment relates, see section 109 of Pub. L. 97–448, set out as a note under section 1 of this title.
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable with respect to the estates of decedents dying after Dec. 31, 1976, upon compliance with certain conditions relating to timely election requirement, reinstatement of elections, and statute of limitations, see section 421(k)(5) of Pub. L. 97–34, set out as a note under section 2032A of this title.
+
+Effective Date of 1980 AmendmentAmendment by Pub. L. 96–223 applicable in respect of decedents dying after Dec. 31, 1976, see section 401(e) of Pub. L. 96–223, set out as a note under section 1023 of this title. Pub. L. 96–222, title I, § 105(a)(5)(B), Apr. 1, 1980, 94 Stat. 219, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Notwithstanding section 515 of the Revenue Act of 1978 [section 515 of Pub. L. 95–600 which deferred carryover basis rules until Dec. 31, 1979], section 1040 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by subparagraph (A) [amending this section]) shall apply with respect to the estates of decedents dying after December 31, 1976.”
+
+Effective Date of 1978 AmendmentAmendment by Pub. L. 95–600 applicable to estates of decedents dying after Dec. 31, 1976, see section 702(d)(6) of Pub. L. 95–600, set out as a note under section 2032A of this title.
+
+Effective DateSection applicable in respect of decedents dying after Dec. 31, 1976, see section 2005(f)(1) of Pub. L. 94–455, set out as a note under section 1015 of this title.

legal/us/code/title-26/chapter-1/section-1041.md

@@ -0,0 +1,77 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1041"
+description: "Transfers of property between spouses or incident to divorce"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1041"
+citation: "26 U.S.C. § 1041"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1041"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "d7dd8a167718396d72179d2dd84ccbcbd6cfdb06aa328386a19091aa03da355c"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "e61bd358235ded714195ba6724b59232bf14c18f04506b59a4bba0a9b8f48ebd"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1041 - Transfers of property between spouses or incident to divorce
+
+## Text
+
+(a) General rule No gain or loss shall be recognized on a transfer of property from an individual to (or in trust for the benefit of)—
+
+(1) a spouse, or
+
+(2) a former spouse, but only if the transfer is incident to the divorce.
+
+(b) Transfer treated as gift; transferee has transferor’s basis In the case of any transfer of property described in subsection (a)—
+
+(1) for purposes of this subtitle, the property shall be treated as acquired by the transferee by gift, and
+
+(2) the basis of the transferee in the property shall be the adjusted basis of the transferor.
+
+(c) Incident to divorce For purposes of subsection (a)(2), a transfer of property is incident to the divorce if such transfer—
+
+(1) occurs within 1 year after the date on which the marriage ceases, or
+
+(2) is related to the cessation of the marriage.
+
+(d) Special rule where spouse is nonresident alien Subsection (a) shall not apply if the spouse (or former spouse) of the individual making the transfer is a nonresident alien.
+
+(e) Transfers in trust where liability exceeds basis Subsection (a) shall not apply to the transfer of property in trust to the extent that—
+
+(1) the sum of the amount of the liabilities assumed, plus the amount of the liabilities to which the property is subject, exceeds
+
+(2) the total of the adjusted basis of the property transferred.
+
+Proper adjustment shall be made under subsection (b) in the basis of the transferee in such property to take into account gain recognized by reason of the preceding sentence.
+
+(Added Pub. L. 98–369, div. A, title IV, § 421(a), July 18, 1984, 98 Stat. 793; amended Pub. L. 99–514, title XVIII, § 1842(b), Oct. 22, 1986, 100 Stat. 2853; Pub. L. 100–647, title I, § 1018(l)(3), Nov. 10, 1988, 102 Stat. 3584.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1988—Subsec. (d). Pub. L. 100–647 substituted “Subsection (a)” for “Paragraph (1) of subsection (a)” and “the spouse (or former spouse)” for “the spouse”. 1986—Subsec. (e). Pub. L. 99–514 added subsec. (e).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1988 AmendmentPub. L. 100–647, title I, § 1018(l)(3), Nov. 10, 1988, 102 Stat. 3584, provided that the amendment made by that section is effective with respect to transfers after June 21, 1988.
+
+Effective Date of 1986 AmendmentAmendment by Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
+
+Effective DatePub. L. 98–369, div. A, title IV, § 421(d), July 18, 1984, 98 Stat. 795, provided that: “(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section [enacting this section and amending sections 47, 72, 101, 453, 453B, 1001, 1015, and 1239 of this title] shall apply to transfers after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date. “(2) Election to have amendments apply to transfers after 1983.—If both spouses or former spouses make an election under this paragraph, the amendments made by this section shall apply to all transfers made by such spouses (or former spouses) after December 31, 1983. “(3) Exception for transfers pursuant to existing decrees.—Except in the case of an election under paragraph (2), the amendments made by this section shall not apply to transfers under any instrument in effect on or before the date of the enactment of this Act unless both spouses (or former spouses) elect to have such amendments apply to transfers under such instrument. “(4) Election.—Any election under paragraph (2) or (3) shall be made in such manner, at such time, and subject to such conditions, as the Secretary of the Treasury or his delegate may by regulations prescribe.”
+
+Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

legal/us/code/title-26/chapter-1/section-1042.md

@@ -0,0 +1,241 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1042"
+description: "Sales of stock to employee stock ownership plans or certain cooperatives"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1042"
+citation: "26 U.S.C. § 1042"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1042"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "7fc6608e42d89842e988d02e66aeec50812ec488a09cf48ba2a170e21f916708"
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+text_hash: "e5acdcc42b422e059187fa91c86d2dea9b889067c3c86db9bc484ddf2b95aa85"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1042 - Sales of stock to employee stock ownership plans or certain cooperatives
+
+## Text
+
+(a) Nonrecognition of gain If—
+
+(1) the taxpayer or executor elects in such form as the Secretary may prescribe the application of this section with respect to any sale of qualified securities,
+
+(2) the taxpayer purchases qualified replacement property within the replacement period, and
+
+(3) the requirements of subsection (b) are met with respect to such sale,
+
+then the gain (if any) on such sale which would be recognized as long-term capital gain shall be recognized only to the extent that the amount realized on such sale exceeds the cost to the taxpayer of such qualified replacement property.
+
+(b) Requirements to qualify for nonrecognition A sale of qualified securities meets the requirements of this subsection if—
+
+(1) Sale to employee organizations The qualified securities are sold to—
+
+(A) an employee stock ownership plan (as defined in section 4975(e)(7)), or
+
+(B) an eligible worker-owned cooperative.
+
+(2) Plan must hold 30 percent of stock after sale The plan or cooperative referred to in paragraph (1) owns (after application of section 318(a)(4)), immediately after the sale, at least 30 percent of—
+
+(A) each class of outstanding stock of the corporation (other than stock described in section 1504(a)(4)) which issued the qualified securities, or
+
+(B) the total value of all outstanding stock of the corporation (other than stock described in section 1504(a)(4)).
+
+(3) Written statement required (A) In general The taxpayer files with the Secretary the written statement described in subparagraph (B).
+
+(B) Statement A statement is described in this subparagraph if it is a verified written statement of—
+
+(i) the employer whose employees are covered by the plan described in paragraph (1), or
+
+(ii) any authorized officer of the cooperative described in paragraph (l),11 So in original. Probably should be “paragraph (1),”.
+
+consenting to the application of sections 4978 and 4979A with respect to such employer or cooperative.
+
+(4) 3-year holding period The taxpayer’s holding period with respect to the qualified securities is at least 3 years (determined as of the time of the sale).
+
+(c) Definitions; special rules For purposes of this section—
+
+(1) Qualified securities The term “qualified securities” means employer securities (as defined in section 409(l)) which—
+
+(A) are issued by a domestic C corporation that has no stock outstanding that is readily tradable on an established securities market, and
+
+(B) were not received by the taxpayer in—
+
+(i) a distribution from a plan described in section 401(a), or
+
+(ii) a transfer pursuant to an option or other right to acquire stock to which section 83, 422, or 423 applied (or to which section 422 or 424 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) applied).
+
+(2) Eligible worker-owned cooperative The term “eligible worker-owned cooperative” means any organization—
+
+(A) to which part I of subchapter T applies,
+
+(B) a majority of the membership of which is composed of employees of such organization,
+
+(C) a majority of the voting stock of which is owned by members,
+
+(D) a majority of the board of directors of which is elected by the members on the basis of 1 person 1 vote, and
+
+(E) a majority of the allocated earnings and losses of which are allocated to members on the basis of—
+
+(i) patronage,
+
+(ii) capital contributions, or
+
+(iii) some combination of clauses (i) and (ii).
+
+(3) Replacement period The term “replacement period” means the period which begins 3 months before the date on which the sale of qualified securities occurs and which ends 12 months after the date of such sale.
+
+(4) Qualified replacement property (A) In general The term “qualified replacement property” means any security issued by a domestic operating corporation which—
+
+(i) did not, for the taxable year preceding the taxable year in which such security was purchased, have passive investment income (as defined in section 1362(d)(3)(C)) in excess of 25 percent of the gross receipts of such corporation for such preceding taxable year, and
+
+(ii) is not the corporation which issued the qualified securities which such security is replacing or a member of the same controlled group of corporations (within the meaning of section 1563(a)(1)) as such corporation.
+
+For purposes of clause (i), income which is described in section 954(c)(3) (as in effect immediately before the Tax Reform Act of 1986) shall not be treated as passive investment income.
+
+(B) Operating corporation For purposes of this paragraph—
+
+(i) In general The term “operating corporation” means a corporation more than 50 percent of the assets of which were, at the time the security was purchased or before the close of the replacement period, used in the active conduct of the trade or business.
+
+(ii) Financial institutions and insurance companies The term “operating corporation” shall include—
+
+(I) any financial institution described in section 581, and
+
+(II) an insurance company subject to tax under subchapter L.
+
+(C) Controlling and controlled corporations treated as 1 corporation (i) In general For purposes of applying this paragraph, if—
+
+(I) the corporation issuing the security owns stock representing control of 1 or more other corporations,
+
+(II) 1 or more other corporations own stock representing control of the corporation issuing the security, or
+
+(III) both,
+
+then all such corporations shall be treated as 1 corporation.
+
+(ii) Control For purposes of clause (i), the term “control” has the meaning given such term by section 304(c). In determining control, there shall be disregarded any qualified replacement property of the taxpayer with respect to the section 1042 sale being tested.
+
+(D) Security defined For purposes of this paragraph, the term “security” has the meaning given such term by section 165(g)(2), except that such term shall not include any security issued by a government or political subdivision thereof.
+
+(5) Securities sold by underwriter No sale of securities by an underwriter to an employee stock ownership plan or eligible worker-owned cooperative in the ordinary course of his trade or business as an underwriter, whether or not guaranteed, shall be treated as a sale for purposes of subsection (a).
+
+(6) Time for filing election An election under subsection (a) shall be filed not later than the last day prescribed by law (including extensions thereof) for filing the return of tax imposed by this chapter for the taxable year in which the sale occurs.
+
+(7) Section not to apply to gain of C corporation Subsection (a) shall not apply to any gain on the sale of any qualified securities which is includible in the gross income of any C corporation.
+
+(d) Basis of qualified replacement property The basis of the taxpayer in qualified replacement property purchased by the taxpayer during the replacement period shall be reduced by the amount of gain not recognized by reason of such purchase and the application of subsection (a). If more than one item of qualified replacement property is purchased, the basis of each of such items shall be reduced by an amount determined by multiplying the total gain not recognized by reason of such purchase and the application of subsection (a) by a fraction—
+
+(1) the numerator of which is the cost of such item of property, and
+
+(2) the denominator of which is the total cost of all such items of property.
+
+Any reduction in basis under this subsection shall not be taken into account for purposes of section 1278(a)(2)(A)(ii) (relating to definition of market discount).
+
+(e) Recapture of gain on disposition of qualified replacement property (1) In general If a taxpayer disposes of any qualified replacement property, then, notwithstanding any other provision of this title, gain (if any) shall be recognized to the extent of the gain which was not recognized under subsection (a) by reason of the acquisition by such taxpayer of such qualified replacement property.
+
+(2) Special rule for corporations controlled by the taxpayer If—
+
+(A) a corporation issuing qualified replacement property disposes of a substantial portion of its assets other than in the ordinary course of its trade or business, and
+
+(B) any taxpayer owning stock representing control (within the meaning of section 304(c)) of such corporation at the time of such disposition holds any qualified replacement property of such corporation at such time,
+
+then the taxpayer shall be treated as having disposed of such qualified replacement property at such time.
+
+(3) Recapture not to apply in certain cases Paragraph (1) shall not apply to any transfer of qualified replacement property—
+
+(A) in any reorganization (within the meaning of section 368) unless the person making the election under subsection (a)(1) owns stock representing control in the acquiring or acquired corporation and such property is substituted basis property in the hands of the transferee,
+
+(B) by reason of the death of the person making such election,
+
+(C) by gift, or
+
+(D) in any transaction to which section 1042(a) applies.
+
+(f) Statute of limitations If any gain is realized by the taxpayer on the sale or exchange of any qualified securities and there is in effect an election under subsection (a) with respect to such gain, then—
+
+(1) the statutory period for the assessment of any deficiency with respect to such gain shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may by regulations prescribe) of—
+
+(A) the taxpayer’s cost of purchasing qualified replacement property which the taxpayer claims results in nonrecognition of any part of such gain,
+
+(B) the taxpayer’s intention not to purchase qualified replacement property within the replacement period, or
+
+(C) a failure to make such purchase within the replacement period, and
+
+(2) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.
+
+(g) Application of section to sales of stock in agricultural refiners and processors to eligible farm cooperatives (1) In general This section shall apply to the sale of stock of a qualified refiner or processor to an eligible farmers’ cooperative.
+
+(2) Qualified refiner or processor For purposes of this subsection, the term “qualified refiner or processor” means a domestic corporation—
+
+(A) substantially all of the activities of which consist of the active conduct of the trade or business of refining or processing agricultural or horticultural products, and
+
+(B) which, during the 1-year period ending on the date of the sale, purchases more than one-half of such products to be refined or processed from—
+
+(i) farmers who make up the eligible farmers’ cooperative which is purchasing stock in the corporation in a transaction to which this subsection is to apply, or
+
+(ii) such cooperative.
+
+(3) Eligible farmers’ cooperative For purposes of this section, the term “eligible farmers’ cooperative” means an organization to which part I of subchapter T applies and which is engaged in the marketing of agricultural or horticultural products.
+
+(4) Special rules In applying this section to a sale to which paragraph (1) applies—
+
+(A) the eligible farmers’ cooperative shall be treated in the same manner as a cooperative described in subsection (b)(1)(B),
+
+(B) subsection (b)(2) shall be applied by substituting “100 percent” for “30 percent” each place it appears,
+
+(C) the determination as to whether any stock in the domestic corporation is a qualified security shall be made without regard to whether the stock is an employer security or to subsection (c)(1)(A), and
+
+(D) paragraphs (2)(D) and (7) of subsection (c) shall not apply.
+
+(Added Pub. L. 98–369, div. A, title V, § 541(a), July 18, 1984, 98 Stat. 887; amended Pub. L. 99–514, title XVIII, §§ 1854(a)(1), (2)(A), (3)(B), (4), (5)(A), (6)(A), (7), (8)(A), (9)(B), (10), (11), (f)(3)(B), 1899A(26), Oct. 22, 1986, 100 Stat. 2872–2878, 2882, 2959; Pub. L. 100–647, title I, § 1018(t)(4)(D)–(F), Nov. 10, 1988, 102 Stat. 3588; Pub. L. 101–239, title VII, § 7303(a), Dec. 19, 1989, 103 Stat. 2352; Pub. L. 101–508, title XI, § 11801(c)(9)(H), Nov. 5, 1990, 104 Stat. 1388–526; Pub. L. 104–188, title I, §§ 1311(b)(3), 1316(d)(3), 1616(b)(13), 1704(t)(50), Aug. 20, 1996, 110 Stat. 1784, 1786, 1857, 1890; Pub. L. 105–34, title IX, § 968(a), Aug. 5, 1997, 111 Stat. 895; Pub. L. 117–328, div. T, title I, § 114(a), (b), Dec. 29, 2022, 136 Stat. 5296.)
+
+## Notes
+
+Amendment of SectionPub. L. 117–328, div. T, title I, § 114, Dec. 29, 2022, 136 Stat. 5296, provided that, applicable to sales after Dec. 31, 2027, this section is amended: (a) in subsection (c)(1)(A), by striking “domestic C corporation” and inserting “domestic corporation”; and (b) by adding at the end the following new subsection: (h) Application of section to sale of stock in S corporation In the case of the sale of qualified securities of an S corporation, the election under subsection (a) may be made with respect to not more than 10 percent of the amount realized on such sale for purposes of determining the amount of gain not recognized and the extent to which (if at all) the amount realized on such sale exceeds the cost of qualified replacement property. The portion of adjusted basis that is properly allocable to the portion of the amount realized with respect to which the election is made under this subsection shall be taken into account for purposes of the preceding sentence. See 2022 Amendment notes below.
+
+Editorial Notes
+
+References in TextThe date of the enactment of the Revenue Reconciliation Act of 1990, referred to in subsec. (c)(1)(B)(ii), is the date of enactment of Pub. L. 101–508, which was approved Nov. 5, 1990. The Tax Reform Act of 1986, referred to in subsec. (c)(4)(A), is Pub. L. 99–514, which was approved Oct. 22, 1986.
+
+Amendments2022—Subsec. (c)(1)(A). Pub. L. 117–328, § 114(a), substituted “domestic corporation” for “domestic C corporation”. Subsec. (h). Pub. L. 117–328, § 114(b), added subsec. (h). 1997—Subsec. (g). Pub. L. 105–34 added subsec. (g). 1996—Subsec. (c)(1)(A). Pub. L. 104–188, § 1316(d)(3), substituted “domestic C corporation” for “domestic corporation”. Subsec. (c)(1)(B)(ii). Pub. L. 104–188, § 1704(t)(50), provided that section 11801(c)(9)(H) of Pub. L. 101–508 shall be applied as if “section 1042(c)(1)(B)” appeared instead of “section 1042(c)(2)(B)”. See 1990 Amendment note below. Subsec. (c)(4)(A)(i). Pub. L. 104–188, § 1311(b)(3), substituted “section 1362(d)(3)(C)” for “section 1362(d)(3)(D)”. Subsec. (c)(4)(B)(ii)(I). Pub. L. 104–188, § 1616(b)(13), struck out “or 593” after “section 581”. 1990—Subsec. (c)(1)(B)(ii). Pub. L. 101–508, which directed the amendment of subsec. (c)(2)(B)(ii) by substituting “section 83, 422, or 423 applied (or to which section 422 or 424 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) applied)” for “section 83, 422, 422A, 423, or 424 applies”, was executed to subsec. (c)(1)(B)(ii). See 1996 Amendment note above. 1989—Subsec. (b)(4). Pub. L. 101–239 added par. (4). 1988—Subsec. (b)(3), (4). Pub. L. 100–647, § 1018(t)(4)(F), made technical correction to Pub. L. 99–514, § 1854(a)(3)(B), see 1986 Amendment notes below. Subsec. (c)(4)(A). Pub. L. 100–647, § 1018(t)(4)(D), inserted “(as in effect immediately before the Tax Reform Act of 1986)” after “section 954(c)(3)” in last sentence. Subsec. (c)(4)(B)(i). Pub. L. 100–647, § 1018(t)(4)(E), substituted “replacement period” for “placement period”. 1986—Pub. L. 99–514, § 1854(a)(11), which directed that “employee” be inserted before “stock” in section catchline was executed by making the insertion before “stock” the second time that term appears as the probable intent of Congress. Subsec. (a). Pub. L. 99–514, § 1854(a)(1), substituted “the taxpayer or executor elects in such form as the Secretary may prescribe” for “the taxpayer elects” in par. (1) and inserted “which would be recognized as long-term capital gain” in concluding provisions. Subsec. (b)(2). Pub. L. 99–514, § 1854(a)(2)(A), substituted “Plan must hold” for “Employees must own” in heading and amended text generally. Prior to amendment, par. (2) read as follows: “The plan or cooperative referred to in paragraph (1) owns, immediately after the sale, at least 30 percent of the total value of the employer securities (within the meaning of section 409(l)) outstanding as of such time.” Subsec. (b)(3). Pub. L. 99–514, § 1854(a)(3)(B), as amended by Pub. L. 100–647, § 1018(t)(4)(F), redesignated par. (4) as (3) and struck out former par. (3) which related to plans maintained for benefit of employees. Subsec. (b)(3)(B). Pub. L. 99–514, § 1854(f)(3)(B), amended subpar. (B) similar to amendment by section 1854(a)(9)(B) of Pub. L. 99–514, inserting reference to section 4979A. Pub. L. 99–514, § 1854(a)(9)(B), substituted “sections 4978 and 4979A” for “section 4978(a)”. Subsec. (b)(4). Pub. L. 99–514, § 1854(a)(3)(B), as amended by Pub. L. 100–647, § 1018(t)(4)(F), redesignated par. (4) as (3). Subsec. (c). Pub. L. 99–514, § 1899A(26), substituted “this section—” for “this section.—” in introductory provision. Subsec. (c)(1). Pub. L. 99–514, § 1854(a)(4), substituted “stock outstanding that is” for “securities outstanding that are” in subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “at the time of the sale described in subsection (a)(1), have been held by the taxpayer for more than 1 year, and”. Subsec. (c)(4). Pub. L. 99–514, § 1854(a)(5)(A), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “The term ‘qualified replacement property’ means any securities (as defined in section 165(g)(2)) issued by a domestic corporation which does not, for the taxable year in which such stock is issued, have passive investment income (as defined in section 1362(d)(3)(D)) that exceeds 25 percent of the gross receipts of such corporation for such taxable year.” Subsec. (c)(5). Pub. L. 99–514, § 1854(a)(10), substituted “sold” for “acquired” in heading, and in text substituted “sale of securities” for “acquisition of securities” and inserted “to an employee stock ownership plan or eligible worker-owned cooperative”. Subsec. (c)(7). Pub. L. 99–514, § 1854(a)(6)(A), added par. (7). Subsec. (d). Pub. L. 99–514, § 1854(a)(7), inserted last sentence. Subsecs. (e), (f). Pub. L. 99–514, § 1854(a)(8)(A), added subsec. (e) and redesignated former subsec. (e) as (f).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2022 AmendmentPub. L. 117–328, div. T, title I, § 114(c), Dec. 29, 2022, 136 Stat. 5296, provided that: “The amendments made by this section [amending this section] shall apply to sales after December 31, 2027.”
+
+Effective Date of 1997 AmendmentPub. L. 105–34, title IX, § 968(b), Aug. 5, 1997, 111 Stat. 896, provided that: “The amendment made by this section [amending this section] shall apply to sales after December 31, 1997.”
+
+Effective Date of 1996 AmendmentAmendment by section 1316(d)(3) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1997, see section 1316(f) of Pub. L. 104–188, set out as a note under section 170 of this title. Amendment by section 1311(b)(3) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1317(a) of Pub. L. 104–188, set out as a note under section 641 of this title. Amendment by section 1616(b)(13) of Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1995, see section 1616(c) of Pub. L. 104–188, set out as a note under section 593 of this title.
+
+Effective Date of 1989 AmendmentPub. L. 101–239, title VII, § 7303(b), Dec. 19, 1989, 103 Stat. 2352, provided that: “The amendment made by this section [amending this section] shall apply to sales after July 10, 1989.”
+
+Effective Date of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
+
+Effective Date of 1986 AmendmentAmendment by section 1854(a)(1), (2)(A), (4), (5)(A), (7), (10), (11) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title. Amendment by section 1854(a)(3)(B) of Pub. L. 99–514 applicable to sales of securities after Oct. 22, 1986, except that a taxpayer or executor may elect to have section 1042(b)(3) of the Internal Revenue Code of 1954 (as in effect before the amendment by section 1854(a)(3)(B) of Pub. L. 99–514) apply to sales before Oct. 22, 1986, as if section 1042(b)(3) included the last sentence of section 409(n)(1) of this title (as added by section 1854(a)(3)(A) of Pub. L. 99–514), see section 1854(a)(3)(C) of Pub. L. 99–514, as amended, set out as a note under section 409 of this title. Pub. L. 99–514, title XVIII, § 1854(a)(6)(B)–(D), Oct. 22, 1986, 100 Stat. 2876, provided that: “(B) The amendment made by subparagraph (A) [amending this section] shall apply to sales after March 28, 1985, except that such amendment shall not apply to sales made before July 1, 1985, if made pursuant to a binding contract in effect on March 28, 1985, and at all times thereafter. “(C) The amendment made by subparagraph (A) shall not apply to any sale occurring on December 20, 1985, with respect to which—“(i) a commitment letter was issued by a bank on October 31, 1984, and “(ii) a final purchase agreement was entered into on November 5, 1985. “(D) In the case of a sale on September 27, 1985, with respect to which a preliminary commitment letter was issued by a bank on April 10, 1985, and with respect to which a commitment letter was issued by a bank on June 28, 1985, the amendment made by subparagraph (A) shall apply but such sale shall be treated as having occurred on September 27, 1986.” Pub. L. 99–514, title XVIII, § 1854(a)(8)(B), Oct. 22, 1986, 100 Stat. 2877, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply to dispositions after the date of the enactment of this Act [Oct. 22, 1986], in taxable years ending after such date.” Amendment by section 1854(a)(9)(B) of Pub. L. 99–514 applicable to sales of securities after Oct. 22, 1986, see section 1854(a)(9)(D) of Pub. L. 99–514, set out as an Effective Date note under section 4979A of this title. Amendment by section 1854(f)(3)(B) of Pub. L. 99–514 effective Oct. 22, 1986, see section 1854(f)(4)(A) of Pub. L. 99–514, set out as a note under section 409 of this title.
+
+Effective DatePub. L. 98–369, div. A, title V, § 541(c), July 18, 1984, 98 Stat. 890, provided that: “The amendments made by this section [enacting this section and amending sections 1016 and 1223 of this title] shall apply to sales of securities in taxable years beginning after the date of enactment of this Act [July 18, 1984].”
+
+Savings ProvisionFor provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.
+
+Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
+
+Ownership of Stock Options as Ownership of Stock; Employee Ownership of Stock After SalePub. L. 99–514, title XVIII, § 1854(a)(2)(B), Oct. 22, 1986, 100 Stat. 2873, provided that: “(i) The requirement that section 1042(b) of the Internal Revenue Code of 1954 [now 1986] shall be applied with regard to section 318(a)(4) of such Code shall apply to sales after May 6, 1986. “(ii) In the case of sales after July 18, 1984, and before the date of the enactment of this Act [Oct. 22, 1986], paragraph (2) of section 1042(b) of such Code shall apply as if it read as follows:“ ‘(2) Employees must own 30 percent of stock after sale.—The plan or cooperative referred to in paragraph (1) owns, immediately after the sale, at least 30 percent of the employer securities or 30 percent of the value of employer securities (within the meaning of section 409(1)) outstanding at the time of sale.’ ”
+
+Replacement Period for Certain SecuritiesPub. L. 99–514, title XVIII, § 1854(a)(5)(B), Oct. 22, 1986, 100 Stat. 2875, provided that: “If—“(i) before January 1, 1987, the taxpayer acquired any security (as defined in section 165(g)(2) of the Internal Revenue Code of 1954 [now 1986]) issued by a domestic corporation or by any State or political subdivision thereof, “(ii) the taxpayer treated such security as qualified replacement property for purposes of section 1042 of such Code, and “(iii) such property does not meet the requirements of section 1042(c)(4) of such Code (as amended by subparagraph (A)), then, with respect to so much of any gain which the taxpayer treated as not recognized under section 1042(a) by reason of the acquisition of such property, the replacement period for purposes of such section shall not expire before January 1, 1987.”
+
+Executive Documents
+
+Line Item VetoPub. L. 105–34, title IX, § 968, Aug. 5, 1997, 111 Stat. 895, amending this section and enacting provisions set out as a note above, was subject to line item veto by the President, Cancellation No. 97–2, signed Aug. 11, 1997, 62 F.R. 43267, Aug. 12, 1997. For decision holding line item veto unconstitutional, see Clinton v. City of New York, 524 U.S. 417, 118 S.Ct. 2091, 141 L.Ed.2d 393 (1998).

legal/us/code/title-26/chapter-1/section-1043.md

@@ -0,0 +1,81 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1043"
+description: "Sale of property to comply with conflict-of-interest requirements"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1043"
+citation: "26 U.S.C. § 1043"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1043"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "d1b6f3ca847f703e0670ec883182e1589a8dd1d109fbfd8a3d2de68513d51e6a"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "a1c68978c552be71eb27697743c3f9aa9bd6d9e976a110e70e9355a7c7250ae9"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1043 - Sale of property to comply with conflict-of-interest requirements
+
+## Text
+
+(a) Nonrecognition of gain If an eligible person sells any property pursuant to a certificate of divestiture, at the election of the taxpayer, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds the cost (to the extent not previously taken into account under this subsection) of any permitted property purchased by the taxpayer during the 60-day period beginning on the date of such sale.
+
+(b) Definitions For purposes of this section—
+
+(1) Eligible person The term “eligible person” means—
+
+(A) an officer or employee of the executive branch, or a judicial officer, of the Federal Government, but does not mean a special Government employee as defined in section 202 of title 18, United States Code, and
+
+(B) any spouse or minor or dependent child whose ownership of any property is attributable under any statute, regulation, rule, judicial canon, or executive order referred to in paragraph (2) to a person referred to in subparagraph (A).
+
+(2) Certificate of divestiture The term “certificate of divestiture” means any written determination—
+
+(A) that states that divestiture of specific property is reasonably necessary to comply with any Federal conflict of interest statute, regulation, rule, judicial canon, or executive order (including section 208 of title 18, United States Code), or requested by a congressional committee as a condition of confirmation,
+
+(B) that has been issued by the President or the Director of the Office of Government Ethics, in the case of executive branch officers or employees, or by the Judicial Conference of the United States (or its designee), in the case of judicial officers, and
+
+(C) that identifies the specific property to be divested.
+
+(3) Permitted property The term “permitted property” means any obligation of the United States or any diversified investment fund approved by regulations issued by the Office of Government Ethics.
+
+(4) Purchase The taxpayer shall be considered to have purchased any permitted property if, but for subsection (c), the unadjusted basis of such property would be its cost within the meaning of section 1012.
+
+(5) Special rule for trusts For purposes of this section, the trustee of a trust shall be treated as an eligible person with respect to property which is held in the trust if—
+
+(A) any person referred to in paragraph (1)(A) has a beneficial interest in the principal or income of the trust, or
+
+(B) any person referred to in paragraph (1)(B) has a beneficial interest in the principal or income of the trust and such interest is attributable under any statute, regulation, rule, judicial canon, or executive order referred to in paragraph (2) to a person referred to in paragraph (1)(A).
+
+(6) Judicial officer The term “judicial officer” means the Chief Justice of the United States, the Associate Justices of the Supreme Court, and the judges of the United States courts of appeals, United States district courts, including the district courts in Guam, the Northern Mariana Islands, and the Virgin Islands, Court of Appeals for the Federal Circuit, Court of International Trade, Tax Court, Court of Federal Claims, Court of Appeals for Veterans Claims, United States Court of Appeals for the Armed Forces, and any court created by Act of Congress, the judges of which are entitled to hold office during good behavior.
+
+(c) Basis adjustments If gain from the sale of any property is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any permitted property which is purchased by the taxpayer during the 60-day period described in subsection (a).
+
+(Added Pub. L. 101–194, title V, § 502(a), Nov. 30, 1989, 103 Stat. 1754; amended Pub. L. 101–280, § 6(a)(1), May 4, 1990, 104 Stat. 160; Pub. L. 101–508, title XI, § 11703(a)(1), Nov. 5, 1990, 104 Stat. 1388–516; Pub. L. 109–432, div. A, title IV, § 418(a), (b), Dec. 20, 2006, 120 Stat. 2966.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2006—Subsec. (b)(1)(A). Pub. L. 109–432, § 418(a)(1)(A), inserted “, or a judicial officer,” after “executive branch”. Subsec. (b)(1)(B), (2)(A). Pub. L. 109–432, § 418(a)(1)(B), (2)(A), inserted “judicial canon,” after “rule,”. Subsec. (b)(2)(B). Pub. L. 109–432, § 418(a)(2)(B), inserted “in the case of executive branch officers or employees, or by the Judicial Conference of the United States (or its designee), in the case of judicial officers,” after “Ethics,”. Subsec. (b)(5)(B). Pub. L. 109–432, § 418(a)(3), inserted “judicial canon,” after “rule,”. Subsec. (b)(6). Pub. L. 109–432, § 418(b), added par. (6). 1990—Subsec. (a). Pub. L. 101–508 substituted “to the extent not previously taken into account under this subsection” for “reduced by any basis adjustment under subsection (c) attributable to a prior sale”. Subsec. (b)(5). Pub. L. 101–280 added par. (5).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2006 AmendmentPub. L. 109–432, div. A, title IV, § 418(c), Dec. 20, 2006, 120 Stat. 2967, provided that: “The amendments made by this section [amending this section] shall apply to sales after the date of enactment of this Act [Dec. 20, 2006].”
+
+Effective Date of 1990 AmendmentPub. L. 101–508, title XI, § 11703(a)(2), Nov. 5, 1990, 104 Stat. 1388–517, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to sales after November 30, 1989.” Pub. L. 101–280, § 6(a)(3), May 4, 1990, 104 Stat. 160, provided that: “The amendment made by paragraph (1) [amending this section] and the provisions of paragraph (2) [set out below] shall apply to sales after November 30, 1989.”
+
+Effective DateSection applicable to sales after Nov. 30, 1989, see section 502(c) of Pub. L. 101–194, set out as an Effective Date of 1989 Amendment note under section 1016 of this title.
+
+Property Sold Before June 19, 1990Pub. L. 101–280, § 6(a)(2), May 4, 1990, 104 Stat. 160, provided that: “(A) For purposes of section 1043 of such Code—“(i) any property sold before June 19, 1990, shall be treated as sold pursuant to a certificate of divestiture (as defined in subsection (b)(2) thereof) if such a certificate is issued with respect to such sale before such date, and “(ii) in any such case, the 60-day period referred to in subsection (a) thereof shall not expire before the end of the 60-day period beginning on the date on which the certificate of divestiture was issued. “(B) Notwithstanding subparagraph (A), section 1043 of such Code shall not apply to any sale before April 19, 1990, unless—“(i) the sale was made in order to comply with an ethics agreement or pursuant to specific direction from the appropriate agency or confirming committee, and “(ii) the justification for the sale meets the criteria set forth in subsection (b)(2)(A) thereof as implemented by the interim regulations implementing such section 1043, published on April 18, 1990.”

legal/us/code/title-26/chapter-1/section-1044.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1044"
+description: "Repealed. Pub. L. 115–97, title I, § 13313(a), Dec. 22, 2017, 131 Stat. 2133]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1044"
+citation: "26 U.S.C. § 1044"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1044"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "88ba49fe8160b658ad121c4fafbe941a1168f33679c8b166454286b0fe04571e"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "a6b15c8becffdf54a56b3003de00d48c5f09e05821228e949cbc5ca77ddb1312"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1044 - Repealed. Pub. L. 115–97, title I, § 13313(a), Dec. 22, 2017, 131 Stat. 2133]
+
+## Notes
+
+Section, added Pub. L. 103–66, title XIII, § 13114(a), Aug. 10, 1993, 107 Stat. 430; amended Pub. L. 104–188, title I, § 1703(a), Aug. 20, 1996, 110 Stat. 1875, related to rollover of publicly traded securities gain into specialized small business investment companies.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to sales after Dec. 31, 2017, see section 13313(c) of Pub. L. 115–97, set out as an Effective Date of 2017 Amendment note under section 1016 of this title.

legal/us/code/title-26/chapter-1/section-1045.md

@@ -0,0 +1,69 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1045"
+description: "Rollover of gain from qualified small business stock to another qualified small business stock"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1045"
+citation: "26 U.S.C. § 1045"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1045"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "c72c0110ac55a12dc407724240ce484b4f18fd12c0061fa8a5b2b1c066e53ab8"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "a52398a9a263d0e84a411575d347f2307def3670b295db06aca240ae94cc3254"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1045 - Rollover of gain from qualified small business stock to another qualified small business stock
+
+## Text
+
+(a) Nonrecognition of gain In the case of any sale of qualified small business stock held by a taxpayer other than a corporation for more than 6 months and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds—
+
+(1) the cost of any qualified small business stock purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by
+
+(2) any portion of such cost previously taken into account under this section.
+
+This section shall not apply to any gain which is treated as ordinary income for purposes of this title.
+
+(b) Definitions and special rules For purposes of this section—
+
+(1) Qualified small business stock The term “qualified small business stock” has the meaning given such term by section 1202(c).
+
+(2) Purchase A taxpayer shall be treated as having purchased any property if, but for paragraph (3), the unadjusted basis of such property in the hands of the taxpayer would be its cost (within the meaning of section 1012).
+
+(3) Basis adjustments If gain from any sale is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any qualified small business stock which is purchased by the taxpayer during the 60-day period described in subsection (a).
+
+(4) Holding period For purposes of determining whether the nonrecognition of gain under subsection (a) applies to stock which is sold—
+
+(A) the taxpayer’s holding period for such stock and the stock referred to in subsection (a)(1) shall be determined without regard to section 1223, and
+
+(B) only the first 6 months of the taxpayer’s holding period for the stock referred to in subsection (a)(1) shall be taken into account for purposes of applying section 1202(c)(2).
+
+(5) Certain rules to apply Rules similar to the rules of subsections (f), (g), (h), (i), (j), and (k) of section 1202 shall apply.
+
+(Added Pub. L. 105–34, title III, § 313(a), Aug. 5, 1997, 111 Stat. 841; amended Pub. L. 105–206, title VI, § 6005(f), July 22, 1998, 112 Stat. 806.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1998—Subsec. (a). Pub. L. 105–206, § 6005(f)(1), in introductory provisions, substituted “a taxpayer other than a corporation” for “an individual” and “such taxpayer” for “such individual”. Subsec. (b)(5). Pub. L. 105–206, § 6005(f)(2), added par. (5).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1998 AmendmentAmendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
+
+Effective DateSection applicable to sales after Aug. 5, 1997, see section 313(c) of Pub. L. 105–34, set out as an Effective Date of 1997 Amendment note under section 1016 of this title.

legal/us/code/title-26/chapter-1/section-1051.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1051"
+description: "Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(78), Dec. 19, 2014, 128 Stat. 4049]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1051"
+citation: "26 U.S.C. § 1051"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1051"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "5c9581c028a7530d6826c71df26f052959733e9e3b43d3e3d1b3164656a66a3a"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "d9cb56cb257e012392d5344f222dce08f653eccf3d77bdf1eb429e735e132ed1"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1051 - Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(78), Dec. 19, 2014, 128 Stat. 4049]
+
+## Notes
+
+Section, Aug. 16, 1954, ch. 736, 68A Stat. 310; Pub. L. 94–455, title XIX, §§ 1901(a)(131), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1786, 1834, related to property acquired by a corporation during affiliation.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as an Effective Date of 2014 Amendment note under section 1 of this title.

legal/us/code/title-26/chapter-1/section-1052.md

@@ -0,0 +1,45 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1052"
+description: "Basis established by the Revenue Act of 1932 or 1934 or by the Internal Revenue Code of 1939"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1052"
+citation: "26 U.S.C. § 1052"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1052"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "9c39da6498cd0e985de0029f3cde71774619efbd360359f48689986d536d729c"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "19dcfdf3626e54ff8c9eb5ca3ae37728e0ac2328ef5458d0f1dbc77cf12f43a6"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1052 - Basis established by the Revenue Act of 1932 or 1934 or by the Internal Revenue Code of 1939
+
+## Text
+
+(a) Revenue Act of 1932 If the property was acquired, after February 28, 1913, in any taxable year beginning before January 1, 1934, and the basis thereof, for purposes of the Revenue Act of 1932 was prescribed by section 113(a)(6), (7), or (9) of such Act (47 Stat. 199), then for purposes of this subtitle the basis shall be the same as the basis therein prescribed in the Revenue Act of 1932.
+
+(b) Revenue Act of 1934 If the property was acquired, after February 28, 1913, in any taxable year beginning before January 1, 1936, and the basis thereof, for purposes of the Revenue Act of 1934, was prescribed by section 113(a)(6), (7), or (8) of such Act (48 Stat. 706), then for purposes of this subtitle the basis shall be the same as the basis therein prescribed in the Revenue Act of 1934.
+
+(c) Internal Revenue Code of 1939 If the property was acquired, after February 28, 1913, in a transaction to which the Internal Revenue Code of 1939 applied, and the basis thereof, for purposes of the Internal Revenue Code of 1939, was prescribed by section 113(a)(6), (7), (8), (13), (15), (18), (19), or (23) of such code, then for purposes of this subtitle the basis shall be the same as the basis therein prescribed in the Internal Revenue Code of 1939.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 310.)
+
+## Notes
+
+Editorial Notes
+
+References in TextRevenue Act of 1932, referred to in section catchline and subsec. (a), is act June 6, 1932, ch. 209, 47 Stat. 169. For complete classification of the Act to the Code, see Tables. Revenue Act of 1934, referred to in section catchline and subsec. (b), is act May 10, 1934, ch. 277, 48 Stat. 680. For complete classification of this Act to the Code, see Tables. The Internal Revenue Code of 1939, referred to in section catchline and subsec. (c), is act Feb. 10, 1939, ch. 2, 53 Stat. 1. Prior to the enactment of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the 1939 Code was classified to former Title 26, Internal Revenue Code. For Table comparisons of the 1939 Code to the 1986 Code, see table I preceding section 1 of this title. Section 113 of the Internal Revenue Code of 1939, referred to in subsec. (c), was classified to section 113 of former Title 26, Internal Revenue Code. Section 113 was repealed by section 7851(a)(1)(A) of this title. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that references in the 1986 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1986 Code, which is then applicable.

legal/us/code/title-26/chapter-1/section-1053.md

@@ -0,0 +1,45 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1053"
+description: "Property acquired before March 1, 1913"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1053"
+citation: "26 U.S.C. § 1053"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1053"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "7bb91117987632b1cd39a0d0e95342a2eb587456a01bfc78798f01abad697b42"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "79601fec02dcbaac16cdf20430ee4a23e22a32f98fb76d6dba06f20ef8ed7ba0"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1053 - Property acquired before March 1, 1913
+
+## Text
+
+In the case of property acquired before March 1, 1913, if the basis otherwise determined under this subtitle, adjusted (for the period before March 1, 1913) as provided in section 1016, is less than the fair market value of the property as of March 1, 1913, then the basis for determining gain shall be such fair market value. In determining the fair market value of stock in a corporation as of March 1, 1913, due regard shall be given to the fair market value of the assets of the corporation as of that date.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 311; Pub. L. 85–866, title I, § 47, Sept. 2, 1958, 72 Stat. 1642.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1958—Pub. L. 85–866 substituted “subtitle” for “part”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1958 AmendmentAmendment by Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.

legal/us/code/title-26/chapter-1/section-1054.md

@@ -0,0 +1,45 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1054"
+description: "Certain stock of Federal National Mortgage Association"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1054"
+citation: "26 U.S.C. § 1054"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1054"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "a6aba0a5163458347257fa9d0d8af22dcd98b8a44a23c37a0d039340cfb597f3"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "450a215de1c7ce1be1ea8756073de62e4fac51a037c3ca2cfc34c7ceb1a45262"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1054 - Certain stock of Federal National Mortgage Association
+
+## Text
+
+In the case of a share of stock issued pursuant to section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., sec. 1718), the basis of such share in the hands of the initial holder shall be an amount equal to the capital contributions evidenced by such share reduced by the amount (if any) required by section 162(d) to be treated (with respect to such share) as ordinary and necessary expenses paid or incurred in carrying on a trade or business.
+
+(Added Pub. L. 86–779, § 8(b), Sept. 14, 1960, 74 Stat. 1003.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 1054 was renumbered section 1063 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DateSection applicable with respect to taxable years beginning after Dec. 31, 1959, see section 8(d) of Pub. L. 86–779, set out as an Effective Date of 1960 Amendment note under section 162 of this title.

legal/us/code/title-26/chapter-1/section-1055.md

@@ -0,0 +1,67 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1055"
+description: "Redeemable ground rents"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1055"
+citation: "26 U.S.C. § 1055"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1055"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "e74fde07164339765b4100bcc316b29ebbae90ea9ad4a954b2469f4e2d527dcb"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "6098648b4bc014bc6f45022182050aa7e8938ce7c68441670b4e4c2af0b8f740"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1055 - Redeemable ground rents
+
+## Text
+
+(a) Character For purposes of this subtitle—
+
+(1) a redeemable ground rent shall be treated as being in the nature of a mortgage, and
+
+(2) real property held subject to liabilities under a redeemable ground rent shall be treated as held subject to liabilities under a mortgage.
+
+(b) Application of subsection (a) (1) In general Subsection (a) shall take effect on the day after the date of the enactment of this section and shall apply with respect to taxable years ending after such date of enactment.
+
+(2) Basis of holder In determining the basis of real property held subject to liabilities under a redeemable ground rent, subsection (a) shall apply whether such real property was acquired before or after the enactment of this section.
+
+(3) Basis of reserved redeemable ground rent In the case of a redeemable ground rent reserved or created on or before the date of the enactment of this section in connection with a transfer of the right to hold real property subject to liabilities under such ground rent, the basis of such ground rent after such date in the hands of the person who reserved or created the ground rent shall be the amount taken into account in respect of such ground rent for Federal income tax purposes as consideration for the disposition of such real property. If no such amount was taken into account, such basis shall be determined as if this section had not been enacted.
+
+(c) Redeemable ground rent defined For purposes of this subtitle, the term “redeemable ground rent” means only a ground rent with respect to which—
+
+(1) there is a lease of land which is assignable by the lessee without the consent of the lessor and which (together with periods for which the lease may be renewed at the option of the lessee) is for a term in excess of 15 years,
+
+(2) the leaseholder has a present or future right to terminate, and to acquire the entire interest of the lessor in the land, by payment of a determined or determinable amount, which right exists by virtue of State or local law and not because of any private agreement or privately created condition, and
+
+(3) the lessor’s interest in the land is primarily a security interest to protect the rental payments to which the lessor is entitled under the lease.
+
+(d) Cross reference For treatment of rentals under redeemable ground rents as interest, see section 163(c).
+
+(Added Pub. L. 88–9, § 1(b), Apr. 10, 1963, 77 Stat. 7.)
+
+## Notes
+
+Editorial Notes
+
+References in TextDate of the enactment of this section, referred to in subsec. (b)(1), (3), means Apr. 10, 1963, the date of approval of Pub. L. 88–9.
+
+Prior ProvisionsA prior section 1055 was renumbered section 1063 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DatePub. L. 88–9, § 2, Apr. 10, 1963, 77 Stat. 8, provided that: “The amendments made by subsection (a) of the first section of this Act [amending section 163 of this title] shall take effect as of January 1, 1962, and shall apply with respect to taxable years ending on or after such date. The amendments made by subsection (b) of the first section of this Act [enacting this section] shall take effect on the day after the date of the enactment of this Act [Apr. 10, 1963] and shall apply with respect to taxable years ending after such date of enactment.”

legal/us/code/title-26/chapter-1/section-1056.md

@@ -0,0 +1,39 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1056"
+description: "Repealed. Pub. L. 108–357, title VIII, § 886(b)(1)(A), Oct. 22, 2004, 118 Stat. 1641]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1056"
+citation: "26 U.S.C. § 1056"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1056"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "cb21618e6fca0b0a609973e7fe87d669a6232eef01d2b527e93107f8f091ac15"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "6e7e7f8af8ae5a49dd7f2d7f9305444b68db1e31063884ed17954ea9cd00073e"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1056 - Repealed. Pub. L. 108–357, title VIII, § 886(b)(1)(A), Oct. 22, 2004, 118 Stat. 1641]
+
+## Notes
+
+Section, added Pub. L. 94–455, title II, § 212(a)(1), Oct. 4, 1976, 90 Stat. 1545; amended Pub. L. 99–514, title VI, § 631(e)(13), Oct. 22, 1986, 100 Stat. 2275, related to basis limitation for player contracts transferred in connection with the sale of a franchise.
+
+A prior section 1056 was renumbered section 1063 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to property acquired after Oct. 22, 2004, see section 886(c)(1) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendment note under section 197 of this title.

legal/us/code/title-26/chapter-1/section-1057.md

@@ -0,0 +1,35 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1057"
+description: "Repealed. Pub. L. 105–34, title XI, § 1131(c)(2), Aug. 5, 1997, 111 Stat. 980]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1057"
+citation: "26 U.S.C. § 1057"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1057"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "f9ade0bb80e6940ac8af22f200756ebc4f91d53de9cd4169368be110009e5e67"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "68ee683df9a4dd4809a7b2ccb0f99f4dc1d12e5cf0697bd90a0925bff5d9bd21"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1057 - Repealed. Pub. L. 105–34, title XI, § 1131(c)(2), Aug. 5, 1997, 111 Stat. 980]
+
+## Notes
+
+Section, added Pub. L. 94–455, title X, § 1015(c), Oct. 4, 1976, 90 Stat. 1618, related to election to treat transfer to foreign trust, etc., as taxable exchange.
+
+A prior section 1057 was renumbered section 1063 of this title.

legal/us/code/title-26/chapter-1/section-1058.md

@@ -0,0 +1,57 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1058"
+description: "Transfers of securities under certain agreements"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1058"
+citation: "26 U.S.C. § 1058"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1058"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "13627aa2e0db3128354b8e06b66f11c6ac5491a02a52e23671eddeef5ae886c9"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "e77a0331f67b9cefa02b86879826ee778ac31bd7227fb15292047b38085f16a8"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1058 - Transfers of securities under certain agreements
+
+## Text
+
+(a) General rule In the case of a taxpayer who transfers securities (as defined in section 1236(c)) pursuant to an agreement which meets the requirements of subsection (b), no gain or loss shall be recognized on the exchange of such securities by the taxpayer for an obligation under such agreement, or on the exchange of rights under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer.
+
+(b) Agreement requirements In order to meet the requirements of this subsection, an agreement shall—
+
+(1) provide for the return to the transferor of securities identical to the securities transferred;
+
+(2) require that payments shall be made to the transferor of amounts equivalent to all interest, dividends, and other distributions which the owner of the securities is entitled to receive during the period beginning with the transfer of the securities by the transferor and ending with the transfer of identical securities back to the transferor;
+
+(3) not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and
+
+(4) meet such other requirements as the Secretary may by regulation prescribe.
+
+(c) Basis Property acquired by a taxpayer described in subsection (a), in a transaction described in that subsection, shall have the same basis as the property transferred by that taxpayer.
+
+(Added Pub. L. 95–345, § 2(d)(1), Aug. 15, 1978, 92 Stat. 482.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 1058 was renumbered section 1063 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DateSection applicable with respect to amounts received after Dec. 31, 1976, as payments with respect to securities loans (as defined in section 512(a)(5) of this title), and transfers of securities, under agreements described in this section, occurring after such date, see section 2(e) of Pub. L. 95–345, set out as an Effective Date of 1978 Amendment note under section 509 of this title.

legal/us/code/title-26/chapter-1/section-1059a.md

@@ -0,0 +1,53 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1059A"
+description: "Limitation on taxpayer’s basis or inventory cost in property imported from related persons"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1059A"
+citation: "26 U.S.C. § 1059A"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1059A"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "30a21bb4c4dcfd7d87e9a0e7a8526660c586ee6c9d536e8fd83d2683619b432a"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "38b82088b5695686d5c5a4282ec13aaa9ba33523f01441e2c5abb289b08429d6"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1059A - Limitation on taxpayer’s basis or inventory cost in property imported from related persons
+
+## Text
+
+(a) In general If any property is imported into the United States in a transaction (directly or indirectly) between related persons (within the meaning of section 482), the amount of any costs—
+
+(1) which are taken into account in computing the basis or inventory cost of such property by the purchaser, and
+
+(2) which are also taken into account in computing the customs value of such property,
+
+shall not, for purposes of computing such basis or inventory cost for purposes of this chapter, be greater than the amount of such costs taken into account in computing such customs value.
+
+(b) Customs value; import For purposes of this section—
+
+(1) Customs value The term “customs value” means the value taken into account for purposes of determining the amount of any customs duties or any other duties which may be imposed on the importation of any property.
+
+(2) Import Except as provided in regulations, the term “import” means the entering, or withdrawal from warehouse, for consumption.
+
+(Added Pub. L. 99–514, title XII, § 1248(a), Oct. 22, 1986, 100 Stat. 2584.)
+
+## Notes
+
+Statutory Notes and Related Subsidiaries
+
+Effective DatePub. L. 99–514, title XII, § 1248(c), Oct. 22, 1986, 100 Stat. 2584, provided that: “The amendments made by this section [enacting this section] shall apply to transactions entered into after March 18, 1986.”

legal/us/code/title-26/chapter-1/section-106.md

@@ -0,0 +1,139 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 106"
+description: "Contributions by employer to accident and health plans"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "106"
+citation: "26 U.S.C. § 106"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s106"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "9e376359e660a4203e3c3a2d1f05b26922a4e8aa9fa9adb0772fc950349d3d2a"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "ef1979a74fa961852d83751623ea09d4a11906a7707eed4fb99d6ebed9fa8fa6"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 106 - Contributions by employer to accident and health plans
+
+## Text
+
+(a) General rule Except as otherwise provided in this section, gross income of an employee does not include employer-provided coverage under an accident or health plan.
+
+(b) Contributions to Archer MSAs (1) In general In the case of an employee who is an eligible individual, amounts contributed by such employee’s employer to any Archer MSA of such employee shall be treated as employer-provided coverage for medical expenses under an accident or health plan to the extent such amounts do not exceed the limitation under section 220(b)(1) (determined without regard to this subsection) which is applicable to such employee for such taxable year.
+
+(2) No constructive receipt No amount shall be included in the gross income of any employee solely because the employee may choose between the contributions referred to in paragraph (1) and employer contributions to another health plan of the employer.
+
+(3) Special rule for deduction of employer contributions Any employer contribution to an Archer MSA, if otherwise allowable as a deduction under this chapter, shall be allowed only for the taxable year in which paid.
+
+(4) Employer MSA contributions required to be shown on return Every individual required to file a return under section 6012 for the taxable year shall include on such return the aggregate amount contributed by employers to the Archer MSAs of such individual or such individual’s spouse for such taxable year.
+
+(5) MSA contributions not part of COBRA coverage Paragraph (1) shall not apply for purposes of section 4980B.
+
+(6) Definitions For purposes of this subsection, the terms “eligible individual” and “Archer MSA” have the respective meanings given to such terms by section 220.
+
+(7) Cross reference For penalty on failure by employer to make comparable contributions to the Archer MSAs of comparable employees, see section 4980E.
+
+(c) Inclusion of long-term care benefits provided through flexible spending arrangements (1) In general Gross income of an employee shall include employer-provided coverage for qualified long-term care services (as defined in section 7702B(c)) to the extent that such coverage is provided through a flexible spending or similar arrangement.
+
+(2) Flexible spending arrangement For purposes of this subsection, a flexible spending arrangement is a benefit program which provides employees with coverage under which—
+
+(A) specified incurred expenses may be reimbursed (subject to reimbursement maximums and other reasonable conditions), and
+
+(B) the maximum amount of reimbursement which is reasonably available to a participant for such coverage is less than 500 percent of the value of such coverage.
+
+In the case of an insured plan, the maximum amount reasonably available shall be determined on the basis of the underlying coverage.
+
+(d) Contributions to health savings accounts (1) In general In the case of an employee who is an eligible individual (as defined in section 223(c)(1)), amounts contributed by such employee’s employer to any health savings account (as defined in section 223(d)) of such employee shall be treated as employer-provided coverage for medical expenses under an accident or health plan to the extent such amounts do not exceed the limitation under section 223(b) (determined without regard to this subsection) which is applicable to such employee for such taxable year.
+
+(2) Special rules Rules similar to the rules of paragraphs (2), (3), (4), and (5) of subsection (b) shall apply for purposes of this subsection.
+
+(3) Cross reference For penalty on failure by employer to make comparable contributions to the health savings accounts of comparable employees, see section 4980G.
+
+(e) FSA and HRA terminations to fund HSAs (1) In general A plan shall not fail to be treated as a health flexible spending arrangement or health reimbursement arrangement under this section or section 105 merely because such plan provides for a qualified HSA distribution.
+
+(2) Qualified HSA distribution The term “qualified HSA distribution” means a distribution from a health flexible spending arrangement or health reimbursement arrangement to the extent that such distribution—
+
+(A) does not exceed the lesser of the balance in such arrangement on September 21, 2006, or as of the date of such distribution, and
+
+(B) is contributed by the employer directly to the health savings account of the employee before January 1, 2012.
+
+Such term shall not include more than 1 distribution with respect to any arrangement.
+
+(3) Additional tax for failure to maintain high deductible health plan coverage (A) In general If, at any time during the testing period, the employee is not an eligible individual, then the amount of the qualified HSA distribution—
+
+(i) shall be includible in the gross income of the employee for the taxable year in which occurs the first month in the testing period for which such employee is not an eligible individual, and
+
+(ii) the tax imposed by this chapter for such taxable year on the employee shall be increased by 10 percent of the amount which is so includible.
+
+(B) Exception for disability or death Clauses (i) and (ii) of subparagraph (A) shall not apply if the employee ceases to be an eligible individual by reason of the death of the employee or the employee becoming disabled (within the meaning of section 72(m)(7)).
+
+(4) Definitions and special rules For purposes of this subsection—
+
+(A) Testing period The term “testing period” means the period beginning with the month in which the qualified HSA distribution is contributed to the health savings account and ending on the last day of the 12th month following such month.
+
+(B) Eligible individual The term “eligible individual” has the meaning given such term by section 223(c)(1).
+
+(C) Treatment as rollover contribution A qualified HSA distribution shall be treated as a rollover contribution described in section 223(f)(5).
+
+(5) Tax treatment relating to distributions For purposes of this title—
+
+(A) In general A qualified HSA distribution shall be treated as a payment described in subsection (d).
+
+(B) Comparability excise tax (i) In general Except as provided in clause (ii), section 4980G shall not apply to qualified HSA distributions.
+
+(ii) Failure to offer to all employees In the case of a qualified HSA distribution to any employee, the failure to offer such distribution to any eligible individual covered under a high deductible health plan of the employer shall (notwithstanding section 4980G(d)) be treated for purposes of section 4980G as a failure to meet the requirements of section 4980G(b).
+
+(f) Reimbursements for menstrual care products For purposes of this section and section 105, expenses incurred for menstrual care products (as defined in section 223(d)(2)(D)) shall be treated as incurred for medical care.
+
+(g) Qualified small employer health reimbursement arrangement For purposes of this section and section 105, payments or reimbursements from a qualified small employer health reimbursement arrangement (as defined in section 9831(d)) of an individual for medical care (as defined in section 213(d)) shall not be treated as paid or reimbursed under employer-provided coverage for medical expenses under an accident or health plan if for the month in which such medical care is provided the individual does not have minimum essential coverage (within the meaning of section 5000A(f)).
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 32; Pub. L. 99–272, title X, § 10001(b), Apr. 7, 1986, 100 Stat. 223; Pub. L. 99–514, title XI, §§ 1114(b)(1), 1151(j)(2), Oct. 22, 1986, 100 Stat. 2450, 2508; Pub. L. 100–647, title I, § 1018(t)(7)(A), title III, § 3011(b)(1), Nov. 10, 1988, 102 Stat. 3589, 3624; Pub. L. 101–239, title VII, § 7862(c)(1)(A), Dec. 19, 1989, 103 Stat. 2432; Pub. L. 104–191, title III, §§ 301(c)(1), 321(c)(2), Aug. 21, 1996, 110 Stat. 2048, 2058; Pub. L. 106–554, § 1(a)(7) [title II, § 202(a)(2), (b)(2)(A), (6), (10)], Dec. 21, 2000, 114 Stat. 2763, 2763A–628, 2763A–629; Pub. L. 108–173, title XII, § 1201(d)(1), Dec. 8, 2003, 117 Stat. 2476; Pub. L. 109–432, div. A, title III, § 302(a), Dec. 20, 2006, 120 Stat. 2948; Pub. L. 111–148, title IX, § 9003(c), Mar. 23, 2010, 124 Stat. 854; Pub. L. 113–295, div. A, title II, § 221(a)(17), Dec. 19, 2014, 128 Stat. 4039; Pub. L. 114–255, div. C, title XVIII, § 18001(a)(2), Dec. 13, 2016, 130 Stat. 1341; Pub. L. 116–136, div. A, title III, § 3702(c), Mar. 27, 2020, 134 Stat. 416.)
+
+## Notes
+
+Editorial Notes
+
+References in TextCOBRA, referred to in the heading for subsec. (b)(5), probably means the Consolidated Omnibus Budget Reconciliation Act of 1985, Pub. L. 99–272, Apr. 7, 1986, 100 Stat. 82. For complete classification of this Act to the Code, see Tables.
+
+Amendments2020—Subsec. (f). Pub. L. 116–136 added subsec. (f) and struck out former subsec. (f). Prior to amendment, text read as follows: “For purposes of this section and section 105, reimbursement for expenses incurred for a medicine or a drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.” 2016—Subsec. (g). Pub. L. 114–255 added subsec. (g). 2014—Subsec. (c)(1). Pub. L. 113–295 substituted “Gross income” for “Effective on and after January 1, 1997, gross income”. 2010—Subsec. (f). Pub. L. 111–148 added subsec. (f). 2006—Subsec. (e). Pub. L. 109–432 added subsec. (e). 2003—Subsec. (d). Pub. L. 108–173 added subsec. (d). 2000—Subsec. (b). Pub. L. 106–554 § 1(a)(7) [title II, § 202(b)(6)], substituted “Archer MSAs” for “medical savings accounts” in heading. Subsec. (b)(1). Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”. Subsec. (b)(3). Pub. L. 106–554 § 1(a)(7) [title II, § 202(b)(10)], substituted “an Archer MSA” for “a Archer MSA”. Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”. Subsec. (b)(4). Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(A)], substituted “Archer MSAs” for “medical savings accounts”. Subsec. (b)(6). Pub. L. 106–554 § 1(a)(7) [title II, § 202(a)(2)], substituted “Archer MSA” for “medical savings account”. Subsec. (b)(7). Pub. L. 106–554, § 1(a)(7) [title II, § 202(b)(2)(A)], substituted “Archer MSAs” for “medical savings accounts”. 1996—Pub. L. 104–191, § 301(c)(1), amended text generally. Prior to amendment, text read as follows: “Gross income of an employee does not include employer-provided coverage under an accident or health plan.” Subsec. (c). Pub. L. 104–191, § 321(c)(2), added subsec. (c). 1989—Subsec. (b)(2). Pub. L. 101–239 amended subsec. (b)(2) as it existed prior to general amendment by Pub. L. 100–647 by striking out the last sentence which read as follows: “Under regulations, rules similar to the rules of subsections (a) and (b) of section 52 (relating to employers under common control) shall apply for purposes of subparagraph (A).” See Effective Date of 1989 Amendment note below. 1988—Pub. L. 100–647, § 3011(b)(1), amended section generally, substituting a single undesignated par. for former subsec. (a) providing that gross income does not include employer-provided coverage under an accident or health plan and subsec. (b) providing for an exception for highly compensated individuals where a plan fails to provide certain continuation coverage. Subsec. (b)(1). Pub. L. 100–647, § 1018(t)(7)(A), substituted “any employer-provided coverage” for “any amount contributed by an employer” and “under a group” for “to a group”. 1986—Pub. L. 99–272 designated existing provisions as subsec. (a) and added subsec. (a) heading and subsec. (b). Subsec. (a). Pub. L. 99–514, § 1151(j)(2), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “Gross income does not include contributions by the employer to accident or health plans for compensation (through insurance or otherwise) to his employees for personal injuries or sickness.” Subsec. (b)(1). Pub. L. 99–514, § 1114(b)(1), substituted “highly compensated employee (within the meaning of section 414(q))” for “highly compensated individual (within the meaning of section 105(h)(5))”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2020 AmendmentPub. L. 116–136, div. A, title III, § 3702(d)(2), Mar. 27, 2020, 134 Stat. 416, provided that: “The amendment made by subsection (c) [amending this section] shall apply to expenses incurred after December 31, 2019.”
+
+Effective Date of 2016 AmendmentAmendment by Pub. L. 114–255 applicable to years beginning after Dec. 31, 2016, see section 18001(a)(7) of Pub. L. 114–255, set out as a note under section 36B of this title.
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 2010 AmendmentPub. L. 111–148, title IX, § 9003(d)(2), Mar. 23, 2010, 124 Stat. 854, provided that: “The amendment made by subsection (c) [amending this section] shall apply to expenses incurred with respect to taxable years beginning after December 31, 2010.”
+
+Effective Date of 2006 AmendmentPub. L. 109–432, div. A, title III, § 302(c)(1), Dec. 20, 2006, 120 Stat. 2949, provided that: “The amendment made by subsection (a) [amending this section] shall apply to distributions on or after the date of the enactment of this Act [Dec. 20, 2006].”
+
+Effective Date of 2003 AmendmentAmendment by Pub. L. 108–173 applicable to taxable years beginning after Dec. 31, 2003, see section 1201(k) of Pub. L. 108–173, set out as a note under section 62 of this title.
+
+Effective Date of 1996 AmendmentAmendment by section 301(c)(1) of Pub. L. 104–191 applicable to taxable years beginning after Dec. 31, 1996, see section 301(j) of Pub. L. 104–191, set out as a note under section 62 of this title. Amendment by section 321(c)(2) of Pub. L. 104–191 applicable to contracts issued after Dec. 31, 1996, see section 321(f) of Pub. L. 104–191, set out as an Effective Date note under section 7702B of this title.
+
+Effective Date of 1989 AmendmentPub. L. 101–239, title VII, § 7862(c)(1)(C), Dec. 19, 1989, 103 Stat. 2432, provided that: “The amendments made by this paragraph [amending this section and section 1161 of Title 29, Labor] shall apply to years beginning after December 31, 1986.” Pub. L. 101–239, title VII, § 7863, Dec. 19, 1989, 103 Stat. 2434, provided that: “Except as otherwise provided in this subpart any amendment made by this subpart [subpart A (§§ 7861–7863) of part V of title VII of Pub. L. 101–239, amending this section and sections 162, 411, 417, and 4980B of this title and sections 1052 to 1055, 1161, 1162, 1167, 1398, and 1461 of Title 29, Labor, enacting provisions set out as notes under this section and sections 162, 417, 1167, 4980, and 4980B of this title, and amending provisions set out as notes under sections 401 and 411 of this title and sections 1001 and 1054 of Title 29], shall take effect as if included in the provision of the Reform Act [Pub. L. 99–514] to which such amendment relates.”
+
+Effective Date of 1988 AmendmentAmendment by section 1018(t)(7)(A) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title. Amendment by section 3011(b)(1) of Pub. L. 100–647 applicable to taxable years beginning after Dec. 31, 1988, but not applicable to any plan for any plan year to which section 162(k) of this title (as in effect on the day before Nov. 10, 1988) did not apply by reason of section 10001(e)(2) of Pub. L. 99–272, see section 3011(d) of Pub. L. 100–647, set out as a note under section 162 of this title.
+
+Effective Date of 1986 AmendmentAmendment by section 1114(b)(1) of Pub. L. 99–514 applicable to years beginning after Dec. 31, 1986, see section 1114(c)(1) of Pub. L. 99–514, set out as a note under section 414 of this title. Amendment by section 1151(j)(2) of Pub. L. 99–514 applicable, with certain qualifications and exceptions, to years beginning after Dec. 31, 1988, see section 1151(k) of Pub. L. 99–514, as amended, set out as a note under section 79 of this title. Pub. L. 99–272, title X, § 10001(e), Apr. 7, 1986, 100 Stat. 227, provided that: “(1) General rule.—The amendments made by this section [amending this section and section 162 of this title] shall apply to plan years beginning on or after July 1, 1986. “(2) Special rule for collective bargaining agreements.—In the case of a group health plan maintained pursuant to one or more collective bargaining agreements between employee representatives and one or more employers ratified before the date of the enactment of this Act [Apr. 7, 1986], the amendments made by this section shall not apply to plan years beginning before the later of—“(A) the date on which the last of the collective bargaining agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of the enactment of this Act), or “(B) January 1, 1987. For purposes of subparagraph (A), any plan amendment made pursuant to a collective bargaining agreement relating to the plan which amends the plan solely to conform to any requirement added by this section shall not be treated as a termination of such collective bargaining agreement.”
+
+RegulationsSecretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1114 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.
+
+Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99–514 for Fiscal Year 1990No monies appropriated by Pub. L. 101–136 to be used to implement or enforce section 1151 of Pub. L. 99–514 or the amendments made by such section, see section 528 of Pub. L. 101–136, set out as a note under section 89 of this title.
+
+Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

legal/us/code/title-26/chapter-1/section-1060.md

@@ -0,0 +1,99 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1060"
+description: "Special allocation rules for certain asset acquisitions"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1060"
+citation: "26 U.S.C. § 1060"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1060"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "815f5444959ec256654672f4e50ebc793cfd696b3b5b7ad9197c376bb4cce82f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "13be91ef28cbf87f0e446b080da505b7d56ff080fb91d7eceabe2dda58294103"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1060 - Special allocation rules for certain asset acquisitions
+
+## Text
+
+(a) General rule In the case of any applicable asset acquisition, for purposes of determining both—
+
+(1) the transferee’s basis in such assets, and
+
+(2) the gain or loss of the transferor with respect to such acquisition,
+
+the consideration received for such assets shall be allocated among such assets acquired in such acquisition in the same manner as amounts are allocated to assets under section 338(b)(5). If in connection with an applicable asset acquisition, the transferee and transferor agree in writing as to the allocation of any consideration, or as to the fair market value of any of the assets, such agreement shall be binding on both the transferee and transferor unless the Secretary determines that such allocation (or fair market value) is not appropriate.
+
+(b) Information required to be furnished to Secretary Under regulations, the transferor and transferee in an applicable asset acquisition shall, at such times and in such manner as may be provided in such regulations, furnish to the Secretary the following information:
+
+(1) The amount of the consideration received for the assets which is allocated to section 197 intangibles.
+
+(2) Any modification of the amount described in paragraph (1).
+
+(3) Any other information with respect to other assets transferred in such acquisition as the Secretary deems necessary to carry out the provisions of this section.
+
+(c) Applicable asset acquisition For purposes of this section, the term “applicable asset acquisition” means any transfer (whether directly or indirectly)—
+
+(1) of assets which constitute a trade or business, and
+
+(2) with respect to which the transferee’s basis in such assets is determined wholly by reference to the consideration paid for such assets.
+
+A transfer shall not be treated as failing to be an applicable asset acquisition merely because section 1031 applies to a portion of the assets transferred.
+
+(d) Treatment of certain partnership transactions In the case of a distribution of partnership property or a transfer of an interest in a partnership—
+
+(1) the rules of subsection (a) shall apply but only for purposes of determining the value of section 197 intangibles for purposes of applying section 755, and
+
+(2) if section 755 applies, such distribution or transfer (as the case may be) shall be treated as an applicable asset acquisition for purposes of subsection (b).
+
+(e) Information required in case of certain transfers of interests in entities (1) In general If—
+
+(A) a person who is a 10-percent owner with respect to any entity transfers an interest in such entity, and
+
+(B) in connection with such transfer, such owner (or a related person) enters into an employment contract, covenant not to compete, royalty or lease agreement, or other agreement with the transferee,
+
+such owner and the transferee shall, at such time and in such manner as the Secretary may prescribe, furnish such information as the Secretary may require.
+
+(2) 10-percent owner For purposes of this subsection—
+
+(A) In general The term “10-percent owner” means, with respect to any entity, any person who holds 10 percent or more (by value) of the interests in such entity immediately before the transfer.
+
+(B) Constructive ownership Section 318 shall apply in determining ownership of stock in a corporation. Similar principles shall apply in determining the ownership of interests in any other entity.
+
+(3) Related person For purposes of this subsection, the term “related person” means any person who is related (within the meaning of section 267(b) or 707(b)(1)) to the 10-percent owner.
+
+(f) Cross reference For provisions relating to penalties for failure to file a return required by this section, see section 6721.
+
+(Added Pub. L. 99–514, title VI, § 641(a), Oct. 22, 1986, 100 Stat. 2282; amended Pub. L. 100–647, title I, § 1006(h)(1), (2), (3)(B), Nov. 10, 1988, 102 Stat. 3410; Pub. L. 101–508, title XI, § 11323(a), (b)(1), Nov. 5, 1990, 104 Stat. 1388–464; Pub. L. 103–66, title XIII, § 13261(e), Aug. 10, 1993, 107 Stat. 539.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 1060 was renumbered section 1063 of this title.
+
+Amendments1993—Subsec. (b)(1). Pub. L. 103–66, § 13261(e)(1), substituted “section 197 intangibles” for “goodwill or going concern value”. Subsec. (d)(1). Pub. L. 103–66, § 13261(e)(2), substituted “section 197 intangibles” for “goodwill or going concern value (or similar items)”. 1990—Subsec. (a). Pub. L. 101–508, § 11323(a), inserted at end “If in connection with an applicable asset acquisition, the transferee and transferor agree in writing as to the allocation of any consideration, or as to the fair market value of any of the assets, such agreement shall be binding on both the transferee and transferor unless the Secretary determines that such allocation (or fair market value) is not appropriate.” Subsecs. (e), (f). Pub. L. 101–508, § 11323(b)(1), added subsec. (e) and redesignated former subsec. (e) as (f). 1988—Subsec. (b)(3). Pub. L. 100–647, § 1006(h)(1), substituted “deems” for “may find”. Subsec. (d). Pub. L. 100–647, § 1006(h)(2), added subsec. (d). Subsec. (e). Pub. L. 100–647, § 1006(h)(3)(B), added subsec. (e).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1993 AmendmentAmendment by Pub. L. 103–66 applicable, except as otherwise provided, with respect to property acquired after Aug. 10, 1993, see section 13261(g) of Pub. L. 103–66, set out as an Effective Date note under section 197 of this title.
+
+Effective Date of 1990 AmendmentAmendment by Pub. L. 101–508 applicable to acquisitions after Oct. 9, 1990, but not applicable to any acquisition pursuant to a written binding contract in effect on Oct. 9, 1990, and at all times thereafter before such acquisition, see section 11323(d) of Pub. L. 101–508, set out as a note under section 338 of this title.
+
+Effective Date of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
+
+Effective Date of 1986 AmendmentPub. L. 99–514, title VI, § 641(c), Oct. 22, 1986, 100 Stat. 2283, provided that: “The amendments made by this section [enacting this section and renumbering former section 1060 of this title as section 1061] shall apply to any acquisition of assets after May 6, 1986, unless such acquisition is pursuant to a binding contract which was in effect on May 6, 1986, and at all times thereafter.”

legal/us/code/title-26/chapter-1/section-1061.md

@@ -0,0 +1,101 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1061"
+description: "Partnership interests held in connection with performance of services"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1061"
+citation: "26 U.S.C. § 1061"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1061"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "8553a84cae8e1afba172debe42adb0abda6e11a3a197bc078057b20367b4b080"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "331058bdcdd97e12543365847b41b39d3be151f54fa884e7e6c18bf935b187ff"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1061 - Partnership interests held in connection with performance of services
+
+## Text
+
+(a) In general If one or more applicable partnership interests are held by a taxpayer at any time during the taxable year, the excess (if any) of—
+
+(1) the taxpayer’s net long-term capital gain with respect to such interests for such taxable year, over
+
+(2) the taxpayer’s net long-term capital gain with respect to such interests for such taxable year computed by applying paragraphs (3) and (4) of sections 11 So in original. Probably should be “section”. 1222 by substituting “3 years” for “1 year”,
+
+shall be treated as short-term capital gain, notwithstanding section 83 or any election in effect under section 83(b).
+
+(b) Special rule To the extent provided by the Secretary, subsection (a) shall not apply to income or gain attributable to any asset not held for portfolio investment on behalf of third party investors.
+
+(c) Applicable partnership interest For purposes of this section—
+
+(1) In general Except as provided in this paragraph or paragraph (4), the term “applicable partnership interest” means any interest in a partnership which, directly or indirectly, is transferred to (or is held by) the taxpayer in connection with the performance of substantial services by the taxpayer, or any other related person, in any applicable trade or business. The previous sentence shall not apply to an interest held by a person who is employed by another entity that is conducting a trade or business (other than an applicable trade or business) and only provides services to such other entity.
+
+(2) Applicable trade or business The term “applicable trade or business” means any activity conducted on a regular, continuous, and substantial basis which, regardless of whether the activity is conducted in one or more entities, consists, in whole or in part, of—
+
+(A) raising or returning capital, and
+
+(B) either—
+
+(i) investing in (or disposing of) specified assets (or identifying specified assets for such investing or disposition), or
+
+(ii) developing specified assets.
+
+(3) Specified asset The term “specified asset” means securities (as defined in section 475(c)(2) without regard to the last sentence thereof), commodities (as defined in section 475(e)(2)), real estate held for rental or investment, cash or cash equivalents, options or derivative contracts with respect to any of the foregoing, and an interest in a partnership to the extent of the partnership’s proportionate interest in any of the foregoing.
+
+(4) Exceptions The term “applicable partnership interest” shall not include—
+
+(A) any interest in a partnership directly or indirectly held by a corporation, or
+
+(B) any capital interest in the partnership which provides the taxpayer with a right to share in partnership capital commensurate with—
+
+(i) the amount of capital contributed (determined at the time of receipt of such partnership interest), or
+
+(ii) the value of such interest subject to tax under section 83 upon the receipt or vesting of such interest.
+
+(5) Third party investor The term “third party investor” means a person who—
+
+(A) holds an interest in the partnership which does not constitute property held in connection with an applicable trade or business; and
+
+(B) is not (and has not been) actively engaged, and is (and was) not related to a person so engaged, in (directly or indirectly) providing substantial services described in paragraph (1) for such partnership or any applicable trade or business.
+
+(d) Transfer of applicable partnership interest to related person (1) In general If a taxpayer transfers any applicable partnership interest, directly or indirectly, to a person related to the taxpayer, the taxpayer shall include in gross income (as short term capital gain) the excess (if any) of—
+
+(A) so much of the taxpayer’s long-term capital gains with respect to such interest for such taxable year attributable to the sale or exchange of any asset held for not more than 3 years as is allocable to such interest, over
+
+(B) any amount treated as short term capital gain under subsection (a) with respect to the transfer of such interest.
+
+(2) Related person For purposes of this paragraph, a person is related to the taxpayer if—
+
+(A) the person is a member of the taxpayer’s family within the meaning of section 318(a)(1), or
+
+(B) the person performed a service within the current calendar year or the preceding three calendar years in any applicable trade or business in which or for which the taxpayer performed a service.
+
+(e) Reporting The Secretary shall require such reporting (at the time and in the manner prescribed by the Secretary) as is necessary to carry out the purposes of this section.
+
+(f) Regulations The Secretary shall issue such regulations or other guidance as is necessary or appropriate to carry out the purposes of this section 22 So in original. Probably should be followed by a period.
+
+(Added Pub. L. 115–97, title I, § 13309(a)(2), Dec. 22, 2017, 131 Stat. 2130.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 1061 was renumbered section 1063 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DatePub. L. 115–97, title I, § 13309(c), Dec. 22, 2017, 131 Stat. 2131, provided that: “The amendments made by this section [enacting this section and renumbering former section 1061 of this title as section 1062] shall apply to taxable years beginning after December 31, 2017.”

legal/us/code/title-26/chapter-1/section-1062.md

@@ -0,0 +1,91 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1062"
+description: "Gain from the sale or exchange of qualified farmland property to qualified farmers"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1062"
+citation: "26 U.S.C. § 1062"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1062"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "b38b4ce0da184a070cddc49a1d3e7c03e87fff19a4bf626f328f72049b3dea5b"
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+text_hash: "a11df8732beef87a6ceda2379e93facf965d78fe542b7dae900698b0a13ff558"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1062 - Gain from the sale or exchange of qualified farmland property to qualified farmers
+
+## Text
+
+(a) Election to pay tax in installments In the case of gain from the sale or exchange of qualified farmland property to a qualified farmer, at the election of the taxpayer, the portion of the net income tax of such taxpayer for the taxable year of the sale or exchange which is equal to the applicable net tax liability shall be paid in 4 equal installments.
+
+(b) Rules relating to installment payments (1) Date for payment of installments If an election is made under subsection (a), the first installment shall be paid on the due date (determined without regard to any extension of time for filing the return) for the return of tax for the taxable year in which the sale or exchange occurs and each succeeding installment shall be paid on the due date (as so determined) for the return of tax for the taxable year following the taxable year with respect to which the preceding installment was made.
+
+(2) Acceleration of payment (A) In general If there is an addition to tax for failure to timely pay any installment required under this section, then the unpaid portion of all remaining installments shall be due on the date of such failure.
+
+(B) Individuals In the case of an individual, if the individual dies, then the unpaid portion of all remaining installment shall be paid on the due date for the return of tax for the taxable year in which the taxpayer dies.
+
+(C) C corporations In the case of a taxpayer which is a C corporation, trust, or estate, if there is a liquidation or sale of substantially all the assets of the taxpayer (including in a title 11 or similar case), a cessation of business by the taxpayer (in the case of a C corporation), or any similar circumstance, then the unpaid portion of all remaining installments shall be due on the date of such event (or in the case of a title 11 or similar case, the day before the petition is filed). The preceding sentence shall not apply to the sale of substantially all the assets of a taxpayer to a buyer if such buyer enters into an agreement with the Secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the taxpayer.
+
+(3) Proration of deficiency to installments If an election is made under subsection (a) to pay the applicable net tax liability in installments and a deficiency has been assessed with respect to such applicable net tax liability, the deficiency shall be prorated to the installments payable under subsection (a). The part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This section shall not apply if the deficiency is due to negligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax.
+
+(c) Election (1) In general Any election under subsection (a) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a).
+
+(2) Partnerships and S corporations In the case of a sale or exchange described in subsection (a) by a partnership or S corporation, the election under subsection (a) shall be made at the partner or shareholder level. The Secretary may prescribe such regulations or other guidance as necessary to carry out the purposes of this paragraph.
+
+(d) Definitions For purposes of this section—
+
+(1) Applicable net tax liability (A) In general The applicable net tax liability with respect to the sale or exchange of any property described in subsection (a) is the excess (if any) of—
+
+(i) such taxpayer’s net income tax for the taxable year, over
+
+(ii) such taxpayer’s net income tax for such taxable year determined without regard to any gain recognized from the sale or exchange of such property.
+
+(B) Net income tax The term “net income tax” means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A.
+
+(2) Qualified farmland property (A) In general The term “qualified farmland property” means real property located in the United States—
+
+(i) which—
+
+(I) has been used by the taxpayer as a farm for farming purposes, or
+
+(II) leased by the taxpayer to a qualified farmer for farming purposes,
+
+during substantially all of the 10-year period ending on the date of the qualified sale or exchange, and
+
+(ii) which is subject to a covenant or other legally enforceable restriction which prohibits the use of such property other than as a farm for farming purposes for any period before the date that is 10 years after the date of the sale or exchange described in subsection (a).
+
+For purposes of clause (i), property which is used or leased by a partnership or S corporation in a manner described in such clause shall be treated as used or leased in such manner by each person who holds a direct or indirect interest in such partnership or S corporation.
+
+(B) Farm; farming purposes The terms “farm” and “farming purposes” have the respective meanings given such terms under section 2032A(e).
+
+(3) Qualified farmer The term “qualified farmer” means any individual who is actively engaged in farming (within the meaning of subsections (b) and (c) of section 1001 of the Food Security Act of 1986 11 See References in Text note below. (7 U.S.C. 1308–1(b) and (c))).
+
+(e) Return requirement A taxpayer making an election under subsection (a) shall include with the return for the taxable year of the sale or exchange described in subsection (a) a copy of the covenant or other legally enforceable restriction described in subsection (d)(2)(A)(ii).
+
+(Added Pub. L. 119–21, title VII, § 70437(a), July 4, 2025, 139 Stat. 248.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSubsections (b) and (c) of section 1001 of the Food Security Act of 1986, referred to in subsec. (d)(3), probably should be a reference to subsections (b) and (c) of section 1001A of the Food Security Act of 1985, which is classified to section 1308–1(b), (c) of Title 7, Agriculture.
+
+Prior ProvisionsA prior section 1062 was renumbered section 1063 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DatePub. L. 119–21, title VII, § 70437(c), July 4, 2025, 139 Stat. 250, provided that: “The amendments made by this section [enacting this section and renumbering former section 1062 of this title as section 1063] shall apply to sales or exchanges in taxable years beginning after the date of the enactment of this Act [July 4, 2025].”

legal/us/code/title-26/chapter-1/section-1063.md

@@ -0,0 +1,47 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1063"
+description: "Cross references"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1063"
+citation: "26 U.S.C. § 1063"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1063"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "664f338065bb216edfe44175fdced22d9657d26c5be9fc79ca7c08acdd93168b"
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+text_hash: "0acb5849118b6b73aece13cfb8efb10420eca5ffc1fdf624f47d653a35abc54a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1063 - Cross references
+
+## Text
+
+(1) For nonrecognition of gain in connection with the transfer of obsolete vessels to the Maritime Administration under chapter 573 of title 46, United States Code, see section 57307 of title 46.
+
+(2) For recognition of gain or loss in connection with the construction of new vessels, see chapter 533 of title 46, United States Code.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 311, § 1054; renumbered § 1055, Pub. L. 86–779, § 8(b), Sept. 14, 1960, 74 Stat. 1003; renumbered § 1056, Pub. L. 88–9, § 1(b), Apr. 10, 1963, 77 Stat. 7; renumbered § 1057, Pub. L. 94–455, title II, § 212(a)(1), Oct. 4, 1976, 90 Stat. 1545; renumbered § 1058, Pub. L. 94–455, title X, § 1015(c), Oct. 4, 1976, 90 Stat. 1618; renumbered § 1059, Pub. L. 95–345, § 2(d)(1), Aug. 15, 1978, 92 Stat. 482; renumbered § 1060, Pub. L. 98–369, div. A, title I, § 53(a), July 18, 1984, 98 Stat. 565; renumbered § 1061 and amended, Pub. L. 99–514, title VI, § 641(a), title XVIII, § 1899A(27), Oct. 22, 1986, 100 Stat. 2282, 2960; Pub. L. 109–304, § 17(e)(5), Oct. 6, 2006, 120 Stat. 1708; renumbered § 1062, Pub. L. 115–97, title I, § 13309(a)(1), Dec. 22, 2017, 131 Stat. 2130; renumbered § 1063, Pub. L. 119–21, title VII, § 70437(a), July 4, 2025, 139 Stat. 248.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2025—Pub. L. 119–21 renumbered section 1062 of this title as this section. 2017—Pub. L. 115–97 renumbered section 1061 of this title as this section. 2006—Par. (1). Pub. L. 109–304, § 17(e)(5)(A), substituted “chapter 573 of title 46, United States Code, see section 57307 of title 46” for “section 510 of the Merchant Marine Act, 1936, see subsection (e) of that section, as amended August 4, 1939 (46 U.S.C. App. 1160)”. Par. (2). Pub. L. 109–304, § 17(e)(5)(B), substituted “chapter 533 of title 46, United States Code” for “section 511 of such Act, as amended (46 U.S.C. App. 1161)”. Par. (3). Pub. L. 109–304, § 17(e)(5)(C), struck out par. (3), which read as follows: “For nonrecognition of gain in connection with vessels exchanged with the Maritime Administration under section 8 of the Merchant Ship Sales Act of 1946, see subsection (a) of that section (50 U.S.C. App. 1741).” 1986—Pub. L. 99–514, § 641(a), renumbered section 1060 of this title as this section. Pars. (1), (2). Pub. L. 99–514, § 1899A(27), which directed the amendment of pars. (1) and (2) of section 1060 by substituting “46 U.S.C. App.” for “46 U.S.C.” was executed to section 1061 to reflect the probable intent of Congress in view of the renumbering of section 1060 as 1061 by section 641(a) of Pub. L. 99–514.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2025 AmendmentAmendment by Pub. L. 119–21 applicable to sales or exchanges in taxable years beginning after July 4, 2025, see section 70437(c) of Pub. L. 119–21, set out as an Effective Date note under section 1062 of this title.

legal/us/code/title-26/chapter-1/section-107.md

@@ -0,0 +1,49 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 107"
+description: "Rental value of parsonages"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "107"
+citation: "26 U.S.C. § 107"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s107"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "b161f3763ee14a62304f70ceb7f1b823870b65aa38ca54f47ff46663f09e3a93"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "130545f688fd4ad5fe304156b43ec757ba176573f3617479960ea66bff90ba2a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 107 - Rental value of parsonages
+
+## Text
+
+In the case of a minister of the gospel, gross income does not include—
+
+(1) the rental value of a home furnished to him as part of his compensation; or
+
+(2) the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 32; Pub. L. 107–181, § 2(a), May 20, 2002, 116 Stat. 583.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2002—Par. (2). Pub. L. 107–181 inserted “and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities” before period at end.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2002 AmendmentPub. L. 107–181, § 2(b), May 20, 2002, 116 Stat. 583, provided that: “(1) In general.—The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2001. “(2) Returns positions.—The amendment made by this section also shall apply to any taxable year beginning before January 1, 2002, for which the taxpayer—“(A) on a return filed before April 17, 2002, limited the exclusion under section 107 of the Internal Revenue Code of 1986 as provided in such amendment, or “(B) filed a return after April 16, 2002. “(3) Other years before 2002.—Except as provided in paragraph (2), notwithstanding any prior regulation, revenue ruling, or other guidance issued by the Internal Revenue Service, no person shall be subject to the limitations added to section 107 of such Code by this Act for any taxable year beginning before January 1, 2002.”

legal/us/code/title-26/chapter-1/section-1071.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1071"
+description: "Repealed. Pub. L. 104–7, § 2(a), Apr. 11, 1995, 109 Stat. 93]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1071"
+citation: "26 U.S.C. § 1071"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1071"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "02a8eb48d7b8b9e44874c7b960bedaec66194b21a756fa39d7a60e87c3206bcd"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "f3dc47f49a23a8040fe23ac9a3f20ae22fc9469908da803b91204a6ac0036f9a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1071 - Repealed. Pub. L. 104–7, § 2(a), Apr. 11, 1995, 109 Stat. 93]
+
+## Notes
+
+Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 311; Sept. 2, 1958, Pub. L. 85–866, title I, § 48(a), 72 Stat. 1642; Oct. 4, 1976, Pub. L. 94–455, title XIX, §§ 1901(b)(31)(E), 1906(b)(13)(A), 90 Stat. 1800, 1834, provided for nonrecognition on FCC certified sales and exchanges.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealPub. L. 104–7, § 2(d), Apr. 11, 1995, 109 Stat. 93, provided that: “(1) In general.—The amendments made by this section [repealing this section and amending sections 1245 and 1250 of this title] shall apply to—“(A) sales and exchanges on or after January 17, 1995, and “(B) sales and exchanges before such date if the FCC tax certificate with respect to such sale or exchange is issued on or after such date. “(2) Binding contracts.—“(A) In general.—The amendments made by this section shall not apply to any sale or exchange pursuant to a written contract which was binding on January 16, 1995, and at all times thereafter before the sale or exchange, if the FCC tax certificate with respect to such sale or exchange was applied for, or issued, on or before such date. “(B) Sales contingent on issuance of certificate.—“(i) In general.—A contract shall be treated as not binding for purposes of subparagraph (A) if the sale or exchange pursuant to such contract, or the material terms of such contract, were contingent, at any time on January 16, 1995, on the issuance of an FCC tax certificate. The preceding sentence shall not apply if the FCC tax certificate for such sale or exchange is issued on or before January 16, 1995. “(ii) Material terms.—For purposes of clause (i), the material terms of a contract shall not be treated as contingent on the issuance of an FCC tax certificate solely because such terms provide that the sales price would, if such certificate were not issued, be increased by an amount not greater than 10 percent of the sales price otherwise provided in the contract. “(3) FCC tax certificate.—For purposes of this subsection, the term ‘FCC tax certificate’ means any certificate of the Federal Communications Commission for the effectuation of section 1071 of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act [Apr. 11, 1995]).”

legal/us/code/title-26/chapter-1/section-1081-to-1083.md

@@ -0,0 +1,41 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1081 to 1083"
+description: "Repealed. Pub. L. 109–135, title IV, § 402(a)(1), Dec. 21, 2005, 119 Stat. 2610]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1081 to 1083"
+citation: "26 U.S.C. § 1081 to 1083"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1081...1083"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "86cd81f8885f4138d1d9ad9e8ce75372e74f0df3472b949f133383a75c20f873"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "3716f5558af962b8c6f7d60ed8eb2f29a9a7905c1306fe335a602f98b1f4d183"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1081 to 1083 - Repealed. Pub. L. 109–135, title IV, § 402(a)(1), Dec. 21, 2005, 119 Stat. 2610]
+
+## Notes
+
+Section 1081, acts Aug. 16, 1954, ch. 736, 68A Stat. 312; Pub. L. 94–455, title XIX, §§ 1901(a)(132), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1786, 1834, provided for nonrecognition of gain or loss on exchanges or distributions in obedience to orders of SEC.
+
+Section 1082, acts Aug. 16, 1954, ch. 736, 68A Stat. 315; Pub. L. 91–172, title VII, § 704(b)(3), Dec. 30, 1969, 83 Stat. 669; Pub. L. 92–178, title III, § 303(c)(5), Dec. 10, 1971, 85 Stat. 522; Pub. L. 94–455, title XIX, §§ 1901(b)(11)(C), 1906(b)(13)(A), 1951(c)(2)(B), title XXI, § 2124(a)(3)(C), Oct. 4, 1976, 90 Stat. 1795, 1834, 1840, 1917; Pub. L. 97–34, title II, § 212(d)(2)(E), Aug. 13, 1981, 95 Stat. 239; Pub. L. 99–514, title II, § 242(b)(1), Oct. 22, 1986, 100 Stat. 2181; Pub. L. 101–508, title XI, § 11801(c)(6)(D), Nov. 5, 1990, 104 Stat. 1388–524, related to basis for determining gain or loss.
+
+Section 1083, acts Aug. 16, 1954, ch. 736, 68A Stat. 317; Pub. L. 94–455, title XIX, § 1901(a)(133), Oct. 4, 1976, 90 Stat. 1786, related to definitions for this part.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal effective as if included in the provisions of the Energy Policy Act of 2005, Pub. L. 109–58, to which it relates, but not applicable with respect to any transaction ordered in compliance with the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.) before that Act’s repeal, see section 402(m) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amendments note under section 23 of this title.

legal/us/code/title-26/chapter-1/section-109.md

@@ -0,0 +1,35 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 109"
+description: "Improvements by lessee on lessor’s property"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "109"
+citation: "26 U.S.C. § 109"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s109"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "e92cceb32391febd8bda7f9a3583658652c967315946fc14c5601ae95d1741a0"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "b13418360a417ef3b52d43205ca7b87d5e594f7032f5dce5f5d9e4e9c0190d46"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 109 - Improvements by lessee on lessor’s property
+
+## Text
+
+Gross income does not include income (other than rent) derived by a lessor of real property on the termination of a lease, representing the value of such property attributable to buildings erected or other improvements made by the lessee.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 33.)

legal/us/code/title-26/chapter-1/section-1091.md

@@ -0,0 +1,65 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1091"
+description: "Loss from wash sales of stock or securities"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1091"
+citation: "26 U.S.C. § 1091"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1091"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "91a7951f9ee2f1a7c69501726a213e9664d38a5511286e5a93776fe0ed2744c8"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "0dd5f5d26942dc48ad3061d7bce3d0a4543d986d7fff089761cf6d288d9b8f55"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1091 - Loss from wash sales of stock or securities
+
+## Text
+
+(a) Disallowance of loss deduction In the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction shall be allowed under section 165 unless the taxpayer is a dealer in stock or securities and the loss is sustained in a transaction made in the ordinary course of such business. For purposes of this section, the term “stock or securities” shall, except as provided in regulations, include contracts or options to acquire or sell stock or securities.
+
+(b) Stock acquired less than stock sold If the amount of stock or securities acquired (or covered by the contract or option to acquire) is less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under regulations prescribed by the Secretary.
+
+(c) Stock acquired not less than stock sold If the amount of stock or securities acquired (or covered by the contract or option to acquire) is not less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility of the loss shall be determined under regulations prescribed by the Secretary.
+
+(d) Unadjusted basis in case of wash sale of stock If the property consists of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility (under this section or corresponding provisions of prior internal revenue laws) of the loss from the sale or other disposition of substantially identical stock or securities, then the basis shall be the basis of the stock or securities so sold or disposed of, increased or decreased, as the case may be, by the difference, if any, between the price at which the property was acquired and the price at which such substantially identical stock or securities were sold or otherwise disposed of.
+
+(e) Certain short sales of stock or securities and securities futures contracts to sell Rules similar to the rules of subsection (a) shall apply to any loss realized on the closing of a short sale of (or the sale, exchange, or termination of a securities futures contract to sell) stock or securities if, within a period beginning 30 days before the date of such closing and ending 30 days after such date—
+
+(1) substantially identical stock or securities were sold, or
+
+(2) another short sale of (or securities futures contracts to sell) substantially identical stock or securities was entered into.
+
+For purposes of this subsection, the term “securities futures contract” has the meaning provided by section 1234B(c).
+
+(f) Cash settlement This section shall not fail to apply to a contract or option to acquire or sell stock or securities solely by reason of the fact that the contract or option settles in (or could be settled in) cash or property other than such stock or securities.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 319; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title I, § 106(a), (b), July 18, 1984, 98 Stat. 629; Pub. L. 100–647, title V, § 5075(a), Nov. 10, 1988, 102 Stat. 3682; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–649; Pub. L. 107–147, title IV, § 412(d)(2), Mar. 9, 2002, 116 Stat. 53.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2002—Subsec. (e). Pub. L. 107–147 substituted “securities and securities futures contracts to sell” for “securities” in heading, inserted “(or the sale, exchange, or termination of a securities futures contract to sell)” after “closing of a short sale of” in introductory provisions and “(or securities futures contracts to sell)” after “short sale of” in par. (2), and inserted concluding provisions. 2000—Subsec. (f). Pub. L. 106–554 added subsec. (f). 1988—Subsec. (a). Pub. L. 100–647 inserted sentence at end defining “stock or securities”. 1984—Subsec. (a). Pub. L. 98–369, § 106(b), substituted “no deduction shall be allowed under section 165 unless the taxpayer is a dealer in stock or securities and the loss is sustained in a transaction made in the ordinary course of such business” for “no deduction for the loss shall be allowed under section 165(c)(2); nor shall such deduction be allowed a corporation under section 165(a) unless it is a dealer in stocks or securities, and the loss is sustained in a transaction made in the ordinary course of business”. Subsec. (e). Pub. L. 98–369, § 106(a), added subsec. (e). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2002 AmendmentAmendment by Pub. L. 107–147 effective as if included in the provisions of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by Pub. L. 106–554], to which such amendment relates, see section 412(e) of Pub. L. 107–147, set out as a note under section 151 of this title.
+
+Effective Date of 1988 AmendmentPub. L. 100–647, title V, § 5075(b), Nov. 10, 1988, 102 Stat. 3682, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to any sale after the date of enactment of this Act [Nov. 10, 1988], in taxable years ending after such date.”
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 106(c), July 18, 1984, 98 Stat. 629, provided that: “(1) Subsection (a).—The amendment made by subsection (a) [amending this section] shall apply to short sales of stock or securities after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date. “(2) Subsection (b).—The amendment made by subsection (b) [amending this section] shall apply to sales after December 31, 1984, in taxable years ending after such date.”

legal/us/code/title-26/chapter-1/section-110.md

@@ -0,0 +1,67 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 110"
+description: "Qualified lessee construction allowances for short-term leases"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "110"
+citation: "26 U.S.C. § 110"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s110"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "3a0d22be1346f0b0dbd25c1f01665f249a35c3cab54c210f99bca28dc2ad6d51"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "85fef199533eaa09ef99811e237090f622d6f62be0f6160df5314807ccf61344"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 110 - Qualified lessee construction allowances for short-term leases
+
+## Text
+
+(a) In general Gross income of a lessee does not include any amount received in cash (or treated as a rent reduction) by a lessee from a lessor—
+
+(1) under a short-term lease of retail space, and
+
+(2) for the purpose of such lessee’s constructing or improving qualified long-term real property for use in such lessee’s trade or business at such retail space,
+
+but only to the extent that such amount does not exceed the amount expended by the lessee for such construction or improvement.
+
+(b) Consistent treatment by lessor Qualified long-term real property constructed or improved in connection with any amount excluded from a lessee’s income by reason of subsection (a) shall be treated as nonresidential real property of the lessor (including for purposes of section 168(i)(8)(B)).
+
+(c) Definitions For purposes of this section—
+
+(1) Qualified long-term real property The term “qualified long-term real property” means nonresidential real property which is part of, or otherwise present at, the retail space referred to in subsection (a) and which reverts to the lessor at the termination of the lease.
+
+(2) Short-term lease The term “short-term lease” means a lease (or other agreement for occupancy or use) of retail space for 15 years or less (as determined under the rules of section 168(i)(3)).
+
+(3) Retail space The term “retail space” means real property leased, occupied, or otherwise used by a lessee in its trade or business of selling tangible personal property or services to the general public.
+
+(d) Information required to be furnished to Secretary Under regulations, the lessee and lessor described in subsection (a) shall, at such times and in such manner as may be provided in such regulations, furnish to the Secretary—
+
+(1) information concerning the amounts received (or treated as a rent reduction) and expended as described in subsection (a), and
+
+(2) any other information which the Secretary deems necessary to carry out the provisions of this section.
+
+(Added Pub. L. 105–34, title XII, § 1213(a), Aug. 5, 1997, 111 Stat. 1000.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 110, act Aug. 16, 1954, ch. 736, 68A Stat. 33, related to income taxes paid by lessee corporations, prior to repeal by Pub. L. 101–508, title XI, § 11801(a)(6), Nov. 5, 1990, 104 Stat. 1388–520.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DatePub. L. 105–34, title XII, § 1213(e), Aug. 5, 1997, 111 Stat. 1001, provided that: “The amendments made by this section [enacting this section and amending sections 168 and 6724 of this title] shall apply to leases entered into after the date of the enactment of this Act [Aug. 5, 1997].”

legal/us/code/title-26/chapter-1/section-1101-to-1103.md

@@ -0,0 +1,41 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1101 to 1103"
+description: "Repealed. Pub. L. 101–508, title XI, § 11801(a)(34), Nov. 5, 1990, 104 Stat. 1388–521]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1101 to 1103"
+citation: "26 U.S.C. § 1101 to 1103"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1101...1103"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "6c3c428113bc39540e5673dcd3438e1e7daa051b04ad34cddabc3cf51b44fa0b"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "f551aaaced01e6c7aaeff622ea5c43efd155633dcbb74edbca998661b6abe15f"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1101 to 1103 - Repealed. Pub. L. 101–508, title XI, § 11801(a)(34), Nov. 5, 1990, 104 Stat. 1388–521]
+
+## Notes
+
+Section 1101, added May 9, 1956, ch. 240, § 10(a), 70 Stat. 139; amended Oct. 2, 1976, Pub. L. 94–452, § 2(a), 90 Stat. 1503; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834; Oct. 19, 1982, Pub. L. 97–354, § 5(a)(34), 96 Stat. 1695, related to distributions of property pursuant to Bank Holding Company Act.
+
+Section 1102, added May 9, 1956, ch. 240, § 10(a), 70 Stat. 143; amended Dec. 27, 1967, Pub. L. 90–225, § 1, 81 Stat. 730; Oct. 2, 1976, Pub. L. 94–452, § 2(a), 90 Stat. 1508; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834, related to basis of property acquired in distributions, periods of limitation, allocation of earnings and profits, and itemization of property.
+
+Section 1103, added May 9, 1956, ch. 240, § 10(a), 70 Stat. 144; amended Oct. 2, 1976, Pub. L. 94–452, § 2(a), 90 Stat. 1509; Oct. 4, 1976, Pub. L. 94–455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834, related to definitions for this part.
+
+Statutory Notes and Related Subsidiaries
+
+Savings ProvisionFor provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

legal/us/code/title-26/chapter-1/section-111.md

@@ -0,0 +1,71 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 111"
+description: "Recovery of tax benefit items"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "111"
+citation: "26 U.S.C. § 111"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s111"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "d2b31c6d8803a4b6c0b5993fc78900655ece677f94e6dfa1b8f6b5175b6a706f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "9e28f6114c07fd1798e8cb7c794f67e70a4b2a74ab742c90d06ff2035807846f"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 111 - Recovery of tax benefit items
+
+## Text
+
+(a) Deductions Gross income does not include income attributable to the recovery during the taxable year of any amount deducted in any prior taxable year to the extent such amount did not reduce the amount of tax imposed by this chapter.
+
+(b) Credits (1) In general If—
+
+(A) a credit was allowable with respect to any amount for any prior taxable year, and
+
+(B) during the taxable year there is a downward price adjustment or similar adjustment,
+
+the tax imposed by this chapter for the taxable year shall be increased by the amount of the credit attributable to the adjustment.
+
+(2) Exception where credit did not reduce tax Paragraph (1) shall not apply to the extent that the credit allowable for the recovered amount did not reduce the amount of tax imposed by this chapter.
+
+(3) Exception for investment tax credit and foreign tax credit This subsection shall not apply with respect to the credit determined under section 46 and the foreign tax credit.
+
+(c) Treatment of carryovers For purposes of this section, an increase in a carryover which has not expired before the beginning of the taxable year in which the recovery or adjustment takes place shall be treated as reducing tax imposed by this chapter.
+
+(d) Special rules for accumulated earnings tax and for personal holding company tax In applying subsection (a) for the purpose of determining the accumulated earnings tax under section 531 or the tax under section 541 (relating to personal holding companies)—
+
+(1) any excluded amount under subsection (a) allowed for the purposes of this subtitle (other than section 531 or section 541) shall be allowed whether or not such amount resulted in a reduction of the tax under section 531 or the tax under section 541 for the prior taxable year; and
+
+(2) where any excluded amount under subsection (a) was not allowable as a deduction for the prior taxable year for purposes of this subtitle other than of section 531 or section 541 but was allowable for the same taxable year under section 531 or section 541, then such excluded amount shall be allowable if it did not result in a reduction of the tax under section 531 or the tax under section 541.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 33; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–589, § 2(c), Dec. 24, 1980, 94 Stat. 3396; Pub. L. 98–369, div. A, title I, § 171(a), July 18, 1984, 98 Stat. 698; Pub. L. 99–514, title XVIII, § 1812(a)(1), (2), Oct. 22, 1986, 100 Stat. 2833.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1986—Subsec. (a). Pub. L. 99–514, § 1812(a)(1), substituted “did not reduce the amount of tax imposed by this chapter” for “did not reduce income subject to tax”. Subsec. (c). Pub. L. 99–514, § 1812(a)(2), substituted “reducing tax imposed by this chapter” for “reducing income subject to tax or reducing tax imposed by this chapter, as the case may be”. 1984—Pub. L. 98–369 amended section generally, substituting provisions relating to recovery of tax benefit items for provisions relating to recovery of bad debts, prior taxes, and delinquency amounts. 1980—Subsec. (d). Pub. L. 96–589 added subsec. (d). 1976—Subsec. (b)(4). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1986 AmendmentAmendment by Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 171(c), July 18, 1984, 98 Stat. 699, provided that: “The amendments made by this section [amending this section] shall apply to amounts recovered after December 31, 1983, in taxable years ending after such date.”
+
+Effective Date of 1980 AmendmentAmendment by Pub. L. 96–589 applicable to transactions which occur after Dec. 31, 1980, other than transactions which occur in a proceeding in a bankruptcy case or similar judicial proceeding or in a proceeding under Title 11 commencing on or after Dec. 31, 1980, with an exception permitting the debtor to make the amendment applicable to transactions occurring after Sept. 30, 1979, in a specified manner, see section 7(a)(1), (f) of Pub. L. 96–589, set out as a note under section 108 of this title.
+
+Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

legal/us/code/title-26/chapter-1/section-1111.md

@@ -0,0 +1,33 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1111"
+description: "Repealed. Pub. L. 94–455, title XIX, § 1901(a)(134), Oct. 4, 1976, 90 Stat. 1786]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1111"
+citation: "26 U.S.C. § 1111"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1111"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "3f469f3df82b15bf9b7035a1fa1ae2e65481f66864614d7fbc7fd811d7d776c9"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "bce56e71fc203859d29cc7513db33fb9f499194ac5f2b24ea662cf8915d8a9c1"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1111 - Repealed. Pub. L. 94–455, title XIX, § 1901(a)(134), Oct. 4, 1976, 90 Stat. 1786]
+
+## Notes
+
+Section, added Pub. L. 87–403, § 1(a), Feb. 2, 1962, 76 Stat. 4, related to distribution of stock pursuant to order enforcing antitrust laws.

legal/us/code/title-26/chapter-1/section-112.md

@@ -0,0 +1,119 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 112"
+description: "Certain combat zone compensation of members of the Armed Forces"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "112"
+citation: "26 U.S.C. § 112"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s112"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "7dda264e72ec59cde75bb1569b43039e3f3da3c374148019d06899eb203d2a6c"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "ea61575000be9594857c6d7d4522d25e37e3862b76fc9a056528aa703c5b06d1"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 112 - Certain combat zone compensation of members of the Armed Forces
+
+## Text
+
+(a) Enlisted personnel Gross income does not include compensation received for active service as a member below the grade of commissioned officer in the Armed Forces of the United States for any month during any part of which such member—
+
+(1) served in a combat zone, or
+
+(2) was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone; but this paragraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone.
+
+With respect to service in the combat zone designated for purposes of the Vietnam conflict, paragraph (2) shall not apply to any month after January 1978.
+
+(b) Commissioned officers Gross income does not include so much of the compensation as does not exceed the maximum enlisted amount received for active service as a commissioned officer in the Armed Forces of the United States for any month during any part of which such officer—
+
+(1) served in a combat zone, or
+
+(2) was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone; but this paragraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone.
+
+With respect to service in the combat zone designated for purposes of the Vietnam conflict, paragraph (2) shall not apply to any month after January 1978.
+
+(c) Definitions For purposes of this section—
+
+(1) The term “commissioned officer” does not include a commissioned warrant officer.
+
+(2) The term “combat zone” means any area which the President of the United States by Executive Order designates, for purposes of this section or corresponding provisions of prior income tax laws, as an area in which Armed Forces of the United States are or have engaged in combat.
+
+(3) Service is performed in a combat zone only if performed on or after the date designated by the President by Executive Order as the date of the commencing of combatant activities in such zone, and on or before the date designated by the President by Executive Order as the date of the termination of combatant activities in such zone.
+
+(4) The term “compensation” does not include pensions and retirement pay.
+
+(5) The term “maximum enlisted amount” means, for any month, the sum of—
+
+(A) the highest rate of basic pay payable for such month to any enlisted member of the Armed Forces of the United States at the highest pay grade applicable to enlisted members, and
+
+(B) in the case of an officer entitled to special pay under section 310, or paragraph (1) or (3) of section 351(a), of title 37, United States Code, for such month, the amount of such special pay payable to such officer for such month.
+
+(d) Prisoners of war, etc. (1) Members of the Armed Forces Gross income does not include compensation received for active service as a member of the Armed Forces of the United States for any month during any part of which such member is in a missing status (as defined in section 551(2) of title 37, United States Code) during the Vietnam conflict as a result of such conflict, other than a period with respect to which it is officially determined under section 552(c) of such title 37 that he is officially absent from his post of duty without authority.
+
+(2) Civilian employees Gross income does not include compensation received for active service as an employee for any month during any part of which such employee is in a missing status during the Vietnam conflict as a result of such conflict. For purposes of this paragraph, the terms “active service”, “employee”, and “missing status” have the respective meanings given to such terms by section 5561 of title 5 of the United States Code.
+
+(3) Period of conflict For purposes of this subsection, the Vietnam conflict began February 28, 1961, and ends on the date designated by the President by Executive order as the date of the termination of combatant activities in Vietnam. For purposes of this subsection, an individual is in a missing status as a result of the Vietnam conflict if immediately before such status began he was performing service in Vietnam or was performing service in Southeast Asia in direct support of military operations in Vietnam.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 34; Pub. L. 89–739, § 1, Nov. 2, 1966, 80 Stat. 1165; Pub. L. 92–279, § 1, Apr. 26, 1972, 86 Stat. 124; Pub. L. 93–597, § 2(a), (b), Jan. 2, 1975, 88 Stat. 1950; Pub. L. 94–569, § 3(b), Oct. 20, 1976, 90 Stat. 2699; Pub. L. 104–117, § 1(d), Mar. 20, 1996, 110 Stat. 828; Pub. L. 104–188, title I, § 1704(t)(4)(A), Aug. 20, 1996, 110 Stat. 1887; Pub. L. 113–295, div. A, title II, § 221(a)(18), Dec. 19, 2014, 128 Stat. 4039; Pub. L. 114–328, div. A, title VI, § 618(k), Dec. 23, 2016, 130 Stat. 2161.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2016—Subsec. (c)(5)(B). Pub. L. 114–328 inserted “, or paragraph (1) or (3) of section 351(a),” after “section 310”. 2014—Subsec. (c)(2). Pub. L. 113–295, § 221(a)(18)(A), struck out “(after June 24, 1950)” after “are or have”. Subsec. (c)(3). Pub. L. 113–295, § 221(a)(18)(B), substituted “such zone.” for “such zone; except that June 25, 1950, shall be considered the date of the commencing of combatant activities in the combat zone designated in Executive Order 10195.” 1996—Pub. L. 104–188 substituted “combat zone compensation” for “combat pay” in section catchline. Subsec. (b). Pub. L. 104–117, § 1(d)(1), substituted “the maximum enlisted amount” for “$500” in introductory provisions. Subsec. (c)(5). Pub. L. 104–117, § 1(d)(2), added par. (5). 1976—Subsec. (a). Pub. L. 94–569 substituted “after January 1978” for “beginning more than 2 years after the date of the enactment of this sentence” after “With respect to service in the combat zone designated for purposes of the Vietnam conflict, paragraph (2) shall not apply to any month”. Subsec. (b). Pub. L. 94–569 substituted “after January 1978” for “beginning more than 2 years after the date of enactment of this sentence” after “With respect to service in the combat zone designated for purposes of the Vietnam conflict, paragraph (2) shall not apply to any month”. 1975—Subsec. (a). Pub. L. 93–597, § 2(a)(3), inserted provision relating to the applicability of par. (2) with respect to service in the combat zone designated for purposes of the Vietnam conflict. Subsec. (a)(1). Pub. L. 93–597, § 2(a)(1), struck out “during an induction period” after “served in a combat zone”. Subsec. (a)(2). Pub. L. 93–597, § 2(a)(2), substituted “; but this paragraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone” for “during an induction period; but this paragraph shall not apply for any month during any part of which there are no combatant activities in any combat zone as determined under subsection (c)(3) of this section”. Subsec. (b). Pub. L. 93–597, § 2(a)(3), inserted provision relating to applicability of par. (2) with respect to service in the combat zone designated for purposes of the Vietnam conflict. Subsec. (b)(1). Pub. L. 93–597, § 2(a)(1), struck out “during an induction period” after “served in a combat zone”. Subsec. (b)(2). Pub. L. 93–597, § 2(a)(2), substituted “; but this paragraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone” for “during an induction period; but this paragraph shall not apply for any month during any part of which there are no combatant activities in any combat zone as determined under subsection (c)(3) of this section”. Subsec. (c)(5). Pub. L. 93–597, § 2(b), struck out par. (5) which defined “induction period”. 1972—Subsec. (d). Pub. L. 92–279 added subsec. (d). 1966—Subsec. (b). Pub. L. 89–739 substituted “$500” for “$200”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 1975 AmendmentPub. L. 93–597, § 2(c), Jan. 2, 1975, 88 Stat. 1950, provided that: “The amendments made by this section [amending this section] shall take effect on July 1, 1973.”
+
+Effective Date of 1972 AmendmentPub. L. 92–279, § 3(a)(1), Apr. 26, 1972, 86 Stat. 125, provided that: “The amendment made by the first section of this Act [amending this section] shall apply to taxable years ending on or after February 28, 1961.”
+
+Effective Date of 1966 AmendmentPub. L. 89–739, § 2, Nov. 2, 1966, 80 Stat. 1165, provided that: “The amendment made by the first section of this Act [amending this section] shall apply with respect to compensation received in taxable years ending after December 31, 1965, for periods of active service after such date.”
+
+Treatment of Certain Individuals Performing Services in the Sinai Peninsula of EgyptPub. L. 115–97, title I, § 11026, Dec. 22, 2017, 131 Stat. 2076, as amended by Pub. L. 119–21, title VII, § 70118(a)–(c), July 4, 2025, 139 Stat. 167, 168, provided that: “(a) In General.—For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):“(1) Section 2(a)(3) (relating to special rule where deceased spouse was in missing status). “(2) Section 112 (relating to the exclusion of certain combat pay of members of the Armed Forces). “(3) Section 692 (relating to income taxes of members of Armed Forces on death). “(4) Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.). “(5) Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces). “(6) Section 4253(d) (relating to the taxation of phone service originating from a combat zone from members of the Armed Forces). “(7) Section 6013(f)(1) (relating to joint return where individual is in missing status). “(8) Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone). “(b) Qualified Hazardous Duty Area.—For purposes of this section, the term ‘qualified hazardous duty area’ means each of the following locations, but only during the period for which any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger), for services performed in such location:“(1) the Sinai Peninsula of Egypt. “(2) Kenya. “(3) Mali. “(4) Burkina Faso. “(5) Chad.” [Pub. L. 119–21, title VII, § 70118(d), July 4, 2025, 139 Stat. 168, provided that: “The amendments made by this section [amending section 11026 of Pub. L. 115–97, set out above] shall take effect on January 1, 2026.” ]
+
+Sense of Congress Regarding Tax Treatment of Members Receiving Special Pay for Duty Subject to Hostile Fire or Imminent DangerPub. L. 106–398, § 1 [[div. A], title X, § 1089], Oct. 30, 2000, 114 Stat. 1654, 1654A–294, provided that: “It is the sense of Congress that members of the Armed Forces who receive special pay under section 310 of title 37, United States Code, for duty subject to hostile fire or imminent danger should receive the same treatment under Federal income tax laws as members serving in combat zones.”
+
+Sense of Congress Regarding Treatment Under Internal Revenue Code of Members Receiving Hostile Fire or Imminent Danger Special Pay During Contingency OperationsPub. L. 106–65, div. A, title VI, § 677, Oct. 5, 1999, 113 Stat. 676, provided that: “It is the sense of Congress that a member of the Armed Forces who is receiving special pay under section 310 of title 37, United States Code, while assigned to duty in support of a contingency operation should be treated under the Internal Revenue Code of 1986 in the same manner as a member of the Armed Forces serving in a combat zone (as defined in section 112 of the Internal Revenue Code of 1986).”
+
+Availability of Certain Tax Benefits for Services as Part of Operation Allied ForcePub. L. 106–21, § 1, Apr. 19, 1999, 113 Stat. 34, provided that: “(a) General Rule.—For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):“(1) Section 2(a)(3) (relating to special rule where deceased spouse was in missing status). “(2) Section 112 (relating to the exclusion of certain combat pay of members of the Armed Forces). “(3) Section 692 (relating to income taxes of members of Armed Forces on death). “(4) Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.). “(5) Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces). “(6) Section 4253(d) (relating to the taxation of phone service originating from a combat zone from members of the Armed Forces). “(7) Section 6013(f)(1) (relating to joint return where individual is in missing status). “(8) Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone). “(b) Qualified Hazardous Duty Area.—For purposes of this section, the term ‘qualified hazardous duty area’ means any area of the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the Adriatic Sea, and the northern Ionian Sea (above the 39th parallel) during the period (which includes the date of the enactment of this Act [Apr. 19, 1999]) that any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay: duty subject to hostile fire or imminent danger) for services performed in such area. “(c) Special Rule for Section 7508.—Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Allied Force outside the United States while deployed away from such individual’s permanent duty station, the term ‘qualified hazardous duty area’ includes, during the period for which the entitlement referred to in subsection (b) is in effect, any area in which such services are performed. “(d) Effective Dates.—“(1) In general.—Except as provided in paragraph (2), this section shall take effect on March 24, 1999. “(2) Withholding.—Subsection (a)(5) shall apply to remuneration paid after the date of the enactment of this Act [Apr. 19, 1999].”
+
+Treatment of Certain Individuals Performing Services in Certain Hazardous Duty Areas; Effective DatePub. L. 104–117, § 1, Mar. 20, 1996, 110 Stat. 827, provided that: “(a) General Rule.—For purposes of the following provisions of the Internal Revenue Code of 1986, a qualified hazardous duty area shall be treated in the same manner as if it were a combat zone (as determined under section 112 of such Code):“(1) Section 2(a)(3) (relating to special rule where deceased spouse was in missing status). “(2) Section 112 (relating to the exclusion of certain combat pay of members of the Armed Forces). “(3) Section 692 (relating to income taxes of members of Armed Forces on death). “(4) Section 2201 (relating to members of the Armed Forces dying in combat zone or by reason of combat-zone-incurred wounds, etc.). “(5) Section 3401(a)(1) (defining wages relating to combat pay for members of the Armed Forces). “(6) Section 4253(d) (relating to the taxation of phone service originating from a combat zone from members of the Armed Forces). “(7) Section 6013(f)(1) (relating to joint return where individual is in missing status). “(8) Section 7508 (relating to time for performing certain acts postponed by reason of service in combat zone). “(b) Qualified Hazardous Duty Area.—For purposes of this section, the term ‘qualified hazardous duty area’ means Bosnia and Herzegovina, Croatia, or Macedonia, if as of the date of the enactment of this section [Mar. 20, 1996] any member of the Armed Forces of the United States is entitled to special pay under section 310 of title 37, United States Code (relating to special pay; duty subject to hostile fire or imminent danger) for services performed in such country. Such term includes any such country only during the period such entitlement is in effect. Solely for purposes of applying section 7508 of the Internal Revenue Code of 1986, in the case of an individual who is performing services as part of Operation Joint Endeavor outside the United States while deployed away from such individual’s permanent duty station, the term ‘qualified hazardous duty area’ includes, during the period for which such entitlement is in effect, any area in which such services are performed. “(c) Exclusion of Combat Pay From Withholding Limited to Amount Excludable From Gross Income.— [Amended section 3401 of this title.] “(d) Increase in Combat Pay Exclusion for Officers to Highest Amount Applicable to Enlisted Personnel.—“(1) In general.— [Amended this section.] “(2) Maximum enlisted amount.— [Amended this section.] “(e) Effective Date.—“(1) In general.—Except as provided in paragraph (2), the provisions of and amendments made by this section shall take effect on November 21, 1995. “(2) Withholding.—Subsection (a)(5) and the amendment made by subsection (c) shall apply to remuneration paid after the date of the enactment of this Act [Mar. 20, 1996].”
+
+[Amended section 3401 of this title.]
+
+[Amended this section.]
+
+[Amended this section.]
+
+Refund or Credit of Overpayment; Applicable PeriodPub. L. 92–279, § 3(a)(2), (3), Apr. 26, 1972, 86 Stat. 125, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(2) If refund or credit of any overpayment for any taxable year resulting from the application of the amendment made by the first section of this Act [amending this section] (including interest, additions to the tax, and additional amounts) is prevented at any time before the expiration of the applicable period specified in paragraph (3) by the operation of any law or rule of law, such refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor is filed before the expiration of such applicable period. “(3) For purposes of paragraph (2), the applicable period for any individual with respect to any compensation is the period ending on whichever of the following days is the later:“(A) the day which is one year after the date of the enactment of this Act [Apr. 26, 1972], or “(B) the day which is 2 years after the date on which it is determined that the individual’s missing status (within the meaning of section 112(d) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) has terminated for purposes of such section 112.”
+
+Executive Documents
+
+Ex. Ord. No. 10585. Termination of Combatant Activities in Korea Ex. Ord. No. 10585, Jan. 1, 1955, 20 F.R. 17, provided: By virtue of the authority vested in me by section 112(c)(3) of the Internal Revenue Code of 1954 [now I.R.C. 1986], January 31, 1955, as of midnight thereof, is hereby designated as the date of termination of combatant activities in the zone comprised of the area described in Executive Order No. 10195 of December 20, 1950 (15 F.R. 9177). Dwight D. Eisenhower.
+
+Ex. Ord. No. 11216. Designation of Vietnam and Adjacent Waters as Combat Zone Ex. Ord. No. 11216, Apr. 24, 1965, 30 F.R. 5817, provided: Pursuant to the authority vested in me by section 112 of the Internal Revenue Code of 1954 [now I.R.C. 1986], I hereby designate, for the purposes of that section, as an area in which Armed Forces of the United States are and have been engaged in combat: Vietnam, including the waters adjacent thereto within the following-described limits: From a point on the East Coast of Vietnam at the juncture of Vietnam with China southeastward to 21° N Lat., 108°15′ E Long.; thence southward to 18° N Lat., 108°15′ E Long.; thence southeastward to 17°30 N Lat., 111° E Long.; thence southward to 11° N Lat., 111° E Long.; thence southwestward to 7° N Lat., 105° E Long.; thence westward to 7° N Lat., 103° E Long.; thence northward to 9°30′ N Lat., 103° E Long.; thence northeastward to 10°15′ N Lat., 104°27′ E Long.; thence northward to a point on the West Coast of Vietnam at the juncture of Vietnam with Cambodia. The date of the commencing of combatant activities in such area is hereby designated as January 1, 1964. Lyndon B. Johnson.
+
+Ex. Ord. No. 12744. Designation of Arabian Peninsula Areas, Airspace, and Adjacent Waters as Combat Zone Ex. Ord. No. 12744, Jan. 21, 1991, 56 F.R. 2663, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 112 of the Internal Revenue Code of 1986 (26 U.S.C. 112), I hereby designate, for purposes of that section, the following locations, including the airspace above such locations, as an area in which Armed Forces of the United States are and have been engaged in combat: —the Persian Gulf —the Red Sea —the Gulf of Oman —that portion of the Arabian Sea that lies north of 10 degrees north latitude and west of 68 degrees east longitude —the Gulf of Aden —the total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. For the purposes of this order, the date of the commencing of combatant activities in such zone is hereby designated as January 17, 1991. George Bush.
+
+Ex. Ord. No. 13002. Termination of Combat Zone Designation in Vietnam and Waters Adjacent Thereto Ex. Ord. No. 13002, May 13, 1996, 61 F.R. 24665, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 112(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 112(c)(3)), June 30, 1996, as of midnight thereof, is hereby designated as the date of termination of combatant activities in the zone comprised of the area described in Executive Order No. 11216 of April 24, 1965 [set out above]. William J. Clinton.
+
+Ex. Ord. No. 13119. Designation of Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the Airspace Above, and Adjacent Waters as a Combat Zone Ex. Ord. No. 13119, April 13, 1999, 64 F.R. 18797, provided: Pursuant to the authority vested in me as President by the Constitution and laws of the United States of America, including section 112 of the Internal Revenue Code of 1986 (26 U.S.C. 112), I designate, for the purposes of that section, the following locations, including the airspace above such locations, as an area in which Armed Forces of the United States are and have been engaged in combat: —The Federal Republic of Yugoslavia (Serbia/Montenegro); —Albania; —the Adriatic Sea; —the Ionian Sea north of the 39th parallel. For the purposes of this order, I designate March 24, 1999, as the date of the commencement of combatant activities in such zone. William J. Clinton.
+
+Ex. Ord. No. 13239. Designation of Afghanistan and the Airspace Above as a Combat Zone Ex. Ord. No. 13239, Dec. 12, 2001, 66 F.R. 64907, provided: Pursuant to the authority vested in me as President by the Constitution and the laws of the United States of America, including section 112 of the Internal Revenue Code of 1986 (26 U.S.C. 112), I designate, for purposes of that section, Afghanistan, including the airspace above, as an area in which Armed Forces of the United States are and have been engaged in combat. For purposes of this order, I designate September 19, 2001, as the date of the commencement of combatant activities in such zone. George W. Bush.

legal/us/code/title-26/chapter-1/section-113.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 113"
+description: "Repealed. Pub. L. 101–508, title XI, § 11801(a)(7), Nov. 5, 1990, 104 Stat. 1388–520]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "113"
+citation: "26 U.S.C. § 113"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s113"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "594b883905f3a951f5b0562a0f943dad7e584f6ed31fade77c0d0786ea9efa3e"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "bcfcbcf4769e87410c73d61526da829d6125e4ac0dddc4f02cc7e2b5d446ccc0"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 113 - Repealed. Pub. L. 101–508, title XI, § 11801(a)(7), Nov. 5, 1990, 104 Stat. 1388–520]
+
+## Notes
+
+Section, act Aug. 16, 1954, ch. 736, 68A Stat. 35, related to mustering-out payments for members of Armed Forces.
+
+Statutory Notes and Related Subsidiaries
+
+Savings ProvisionFor provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

legal/us/code/title-26/chapter-1/section-114.md

@@ -0,0 +1,41 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 114"
+description: "Repealed. Pub. L. 108–357, title I, § 101(a), Oct. 22, 2004, 118 Stat. 1423]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "114"
+citation: "26 U.S.C. § 114"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s114"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "fb144ea7c57415323d3138d98b332139589844caf67d36a8b3a4635e8624e765"
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+text_hash: "96321883bc287dea6b2cbc50c950d1caabec8cbbd176f464f350dc6cfe4b298a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 114 - Repealed. Pub. L. 108–357, title I, § 101(a), Oct. 22, 2004, 118 Stat. 1423]
+
+## Notes
+
+Section, added Pub. L. 106–519, § 3(a), Nov. 15, 2000, 114 Stat. 2423, related to exclusion of extraterritorial income from gross income.
+
+A prior section 114, act Aug. 16, 1954, ch. 736, 68A Stat. 35, related to sports programs conducted for American National Red Cross, prior to repeal by Pub. L. 101–508, title XI, § 11801(a)(8), Nov. 5, 1990, 104 Stat. 1388–520.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to transactions after Dec. 31, 2004, see section 101(c) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.
+
+Transition ProvisionsPub. L. 108–357, title I, § 101(d)–(f), Oct. 22, 2004, 118 Stat. 1423, 1424, as amended by Pub. L. 109–222, title V, § 513(b), May 17, 2006, 120 Stat. 366; Pub. L. 113–295, div. A, title II, § 219(a), Dec. 19, 2014, 128 Stat. 4035, provided that: “(d) Transitional Rule for 2005 and 2006.—“(1) In general.—In the case of transactions during 2005 or 2006, the amount includible in gross income by reason of the amendments made by this section [amending sections 56, 275, 864, 903, and 999 of this title and repealing this section and sections 941 to 943 of this title] shall not exceed the applicable percentage of the amount which would have been so included but for this subsection. “(2) Applicable percentage.—For purposes of paragraph (1), the applicable percentage shall be as follows:“(A) For 2005, the applicable percentage shall be 20 percent. “(B) For 2006, the applicable percentage shall be 40 percent. “(3) Coordination with section 199.—This subsection shall be applied without regard to any deduction allowable under section 199 [probably means former section 199 of the Internal Revenue Code of 1986]. “(e) Revocation of Election To Be Treated as Domestic Corporation.—If, during the 1-year period beginning on the date of the enactment of this Act [Oct. 22, 2004], a corporation for which an election is in effect under section 943(e) of the Internal Revenue Code of 1986 revokes such election, no gain or loss shall be recognized with respect to property treated as transferred under clause (ii) of section 943(e)(4)(B) of such Code to the extent such property—“(1) was treated as transferred under clause (i) thereof, or “(2) was acquired during a taxable year to which such election applies and before May 1, 2003, in the ordinary course of its trade or business. The Secretary of the Treasury (or such Secretary’s delegate) may prescribe such regulations as may be necessary to prevent the abuse of the purposes of this subsection. “[(f) Repealed. Pub. L. 109–222, title V, § 513(b), May 17, 2006, 120 Stat. 366.]”

legal/us/code/title-26/chapter-1/section-115.md

@@ -0,0 +1,51 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 115"
+description: "Income of States, municipalities, etc."
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "115"
+citation: "26 U.S.C. § 115"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s115"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "f7d47e156aa85717f427244f270a40501f4ee78af81c251ea7f8aa809f7ab720"
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+text_hash: "7dbb18cde65d6a33a460218c6034598738e686dc6c9cc2a337fa87cc1d7dab4f"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 115 - Income of States, municipalities, etc.
+
+## Text
+
+Gross income does not include—
+
+(1) income derived from any public utility or the exercise of any essential governmental function and accruing to a State or any political subdivision thereof, or the District of Columbia; or
+
+(2) income accruing to the government of any possession of the United States, or any political subdivision thereof.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 35; Pub. L. 94–455, title XIX, § 1901(a)(19), Oct. 4, 1976, 90 Stat. 1766.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1976—Pub. L. 94–455 struck out “(a) General rule” before “Gross income does not include”, struck out subsecs. (b) and (c) which related to contracts concerning public utilities made before Sept. 8, 1916, and contracts concerning bridge acquisition made before May 29, 1928, respectively, and in par. (1) of former subsec. (a), struck out “or territory” after “accruing to a State”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1976 AmendmentAmendment by Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Tax Treatment of State Ownership of Railroad Real Estate Investment TrustPub. L. 109–59, title XI, § 11146, Aug. 10, 2005, 119 Stat. 1966, provided that: “(a) In General.—If a State owns all of the outstanding stock of a corporation—“(1) which is a real estate investment trust on the date of the enactment of this Act [Aug. 10, 2005], “(2) which is a non-operating class III railroad, and “(3) substantially all of the activities of which consist of the ownership, leasing, and operation by such corporation of facilities, equipment, and other property used by the corporation or other persons for railroad transportation and for economic development purposes for the benefit of the State and its citizens, then, to the extent such activities are of a type which are an essential governmental function within the meaning of section 115 of the Internal Revenue Code of 1986, income derived from such activities by the corporation shall be treated as accruing to the State for purposes of section 115 of such Code. “(b) Gain or Loss not Recognized on Conversion.—Notwithstanding section 337(d) of the Internal Revenue Code of 1986—“(1) no gain or loss shall be recognized under section 336 or 337 of such Code, and “(2) no change in basis of the property of such corporation shall occur, because of any change of status of a corporation to a tax-exempt entity by reason of the application of subsection (a). “(c) Tax-Exempt Financing.—“(1) In general.—Any obligation issued by a corporation described in subsection (a) at least 95 percent of the net proceeds (as defined in section 150(a) of the Internal Revenue Code of 1986) of which are to be used to provide for the acquisition, construction, or improvement of railroad transportation infrastructure (including railroad terminal facilities)—“(A) shall be treated as a State or local bond (within the meaning of section 103(c) of such Code), and “(B) shall not be treated as a private activity bond (within the meaning of section 103(b)(1) of such Code) solely by reason of the ownership or use of such railroad transportation infrastructure by the corporation. “(2) No inference.—Except as provided in paragraph (1), nothing in this subsection shall be construed to affect the treatment of the private use of proceeds or property financed with obligations issued by the corporation for purposes of section 103 of the Internal Revenue Code of 1986 and part IV of subchapter B [probably means part IV of subchapter B of chapter 1] of such Code. “(d) Definitions.—For purposes of this section:“(1) Real estate investment trust.—The term ‘real estate investment trust’ has the meaning given such term by section 856(a) of the Internal Revenue Code of 1986. “(2) Non-operating class iii railroad.—The term ‘non-operating class III railroad’ has the meaning given such term by part A of subtitle IV of title 49, United States Code (49 U.S.C. 10101 et seq.), and the regulations thereunder. “(3) State.—The term ‘State’ includes—“(A) the District of Columbia and any possession of the United States, and “(B) any authority, agency, or public corporation of a State. “(e) Applicability.—“(1) In general.—Except as provided in paragraph (2), this section shall apply on and after the date on which a State becomes the owner of all of the outstanding stock of a corporation described in subsection (a) through action of such corporation’s board of directors. “(2) Exception.—This section shall not apply to any State which—“(A) becomes the owner of all of the voting stock of a corporation described in subsection (a) after December 31, 2003, or “(B) becomes the owner of all of the outstanding stock of a corporation described in subsection (a) after December 31, 2006.”

legal/us/code/title-26/chapter-1/section-116.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 116"
+description: "Repealed. Pub. L. 99–514, title VI, § 612(a), Oct. 22, 1986, 100 Stat. 2250]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "116"
+citation: "26 U.S.C. § 116"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s116"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "d1c13e9fb0bd61f4dbeb173affacf6179f1b9723c3adb15e11c71567f187b37d"
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+text_hash: "1cb5c57e21502eaa86a71cfb7b5a13430cb818b7379c17b47a45040f75e4255a"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 116 - Repealed. Pub. L. 99–514, title VI, § 612(a), Oct. 22, 1986, 100 Stat. 2250]
+
+## Notes
+
+Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 37; June 25, 1959, Pub. L. 86–69, § 3(a)(2), 73 Stat. 139; Sept. 14, 1960, Pub. L. 86–779, § 10(f), 74 Stat. 1009; Feb. 26, 1964, Pub. L. 88–272, title II, § 201(c), (d)(6)(C), 78 Stat. 32; Nov. 13, 1966, Pub. L. 89–809, title I, § 103(g), 80 Stat. 1552; Oct. 4, 1976, Pub. L. 94–455, title X, §§ 1051(h)(2), 1053(d)(1), title XIX, § 1901(a)(20), 90 Stat. 1647, 1649, 1766; Apr. 2, 1980, Pub. L. 96–223, title IV, § 404(a), 94 Stat. 305; Aug. 13, 1981, Pub. L. 97–34, title III, § 302(b)(2), 95 Stat. 272; July 18, 1984, Pub. L. 98–369, div. A, title V, § 542(b), 98 Stat. 891, authorized partial exclusion of dividends received by individuals.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to taxable years beginning after Dec. 31, 1986, see section 612(c) of Pub. L. 99–514, set out as an Effective Date of 1986 Amendment note under section 301 of this title.

legal/us/code/title-26/chapter-1/section-117.md

@@ -0,0 +1,113 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 117"
+description: "Qualified scholarships"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "117"
+citation: "26 U.S.C. § 117"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s117"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "12896476d444921fc595676600c3bbb9866efce81cf5bb61a84e103d14ba29be"
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+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 117 - Qualified scholarships
+
+## Text
+
+(a) General rule Gross income does not include any amount received as a qualified scholarship by an individual who is a candidate for a degree at an educational organization described in section 170(b)(1)(A)(ii).
+
+(b) Qualified scholarship For purposes of this section—
+
+(1) In general The term “qualified scholarship” means any amount received by an individual as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses.
+
+(2) Qualified tuition and related expenses For purposes of paragraph (1), the term “qualified tuition and related expenses” means—
+
+(A) tuition and fees required for the enrollment or attendance of a student at an educational organization described in section 170(b)(1)(A)(ii), and
+
+(B) fees, books, supplies, and equipment required for courses of instruction at such an educational organization.
+
+(c) Limitation (1) In general Except as provided in paragraph (2), subsections (a) and (d) shall not apply to that portion of any amount received which represents payment for teaching, research, or other services by the student required as a condition for receiving the qualified scholarship or qualified tuition reduction.
+
+(2) Exceptions Paragraph (1) shall not apply to any amount received by an individual under—
+
+(A) the National Health Service Corps Scholarship Program under section 338A(g)(1)(A) of the Public Health Service Act,
+
+(B) the Armed Forces Health Professions Scholarship and Financial Assistance program under subchapter I of chapter 105 of title 10, United States Code, or
+
+(C) a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in such section).
+
+(d) Qualified tuition reduction (1) In general Gross income shall not include any qualified tuition reduction.
+
+(2) Qualified tuition reduction For purposes of this subsection, the term “qualified tuition reduction” means the amount of any reduction in tuition provided to an employee of an organization described in section 170(b)(1)(A)(ii) for the education (below the graduate level) at such organization (or another organization described in section 170(b)(1)(A)(ii)) of—
+
+(A) such employee, or
+
+(B) any person treated as an employee (or whose use is treated as an employee use) under the rules of section 132(h).
+
+(3) Reduction must not discriminate in favor of highly compensated, etc. Paragraph (1) shall apply with respect to any qualified tuition reduction provided with respect to any highly compensated employee only if such reduction is available on substantially the same terms to each member of a group of employees which is defined under a reasonable classification set up by the employer which does not discriminate in favor of highly compensated employees (within the meaning of section 414(q)). For purposes of this paragraph, the term “highly compensated employee” has the meaning given such term by section 414(q).
+
+[(4) Repealed. Pub. L. 101–140, title II, § 203(a)(1), (2), Nov. 8, 1989, 103 Stat. 830]
+
+(5) Special rules for teaching and research assistants In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(1)(A)(ii) and who is engaged in teaching or research activities for such organization, paragraph (2) shall be applied as if it did not contain the phrase “(below the graduate level)”.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 38; Pub. L. 87–256, § 110(a), Sept. 21, 1961, 75 Stat. 535; Pub. L. 94–455, title XIX, § 1901(b)(8)(A), (c)(3), Oct. 4, 1976, 90 Stat. 1794, 1803; Pub. L. 96–541, § 5(a)(1), Dec. 17, 1980, 94 Stat. 3205; Pub. L. 98–369, div. A, title V, § 532(a), July 18, 1984, 98 Stat. 887; Pub. L. 99–514, title I, § 123(a), title XI, §§ 1114(b)(2), 1151(g)(2), Oct. 22, 1986, 100 Stat. 2112, 2450, 2506; Pub. L. 100–647, title I, § 1011B(a)(31)(B), title IV, § 4001(b)(2), Nov. 10, 1988, 102 Stat. 3488, 3643; Pub. L. 101–140, title II, § 203(a)(1), (2), Nov. 8, 1989, 103 Stat. 830; Pub. L. 104–188, title I, § 1703(n)(14), Aug. 20, 1996, 110 Stat. 1878; Pub. L. 107–16, title IV, § 413(a), June 7, 2001, 115 Stat. 64; Pub. L. 114–113, div. Q, title III, § 301(a), Dec. 18, 2015, 129 Stat. 3086.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 338A(g)(1)(A) of the Public Health Service Act, referred to in subsec. (c)(2)(A), is classified to section 254l(g)(1)(A) of Title 42, The Public Health and Welfare. Section 448(e) of the Higher Education Act of 1965, referred to in subsec. (c)(2)(C), is classified to section 1087–58(e) of Title 20, Education.
+
+Amendments2015—Subsec. (c)(2)(C). Pub. L. 114–113 added subpar. (C). 2001—Subsec. (c). Pub. L. 107–16 designated existing provisions as par. (1), inserted par. heading, substituted “Except as provided in paragraph (2), subsections (a)” for “Subsections (a)”, and added par. (2). 1996—Subsec. (d)(2)(B). Pub. L. 104–188 substituted “section 132(h)” for “section 132(f)”. 1989—Subsec. (d)(4). Pub. L. 101–140, § 203(a)(2), amended par. (4) to read as if amendments by Pub. L. 100–647, § 1011B(a)(31)(B), had not been enacted, see 1988 Amendment note below. Pub. L. 101–140, § 203(a)(1), amended subsec. (d) to read as if amendments by Pub. L. 99–514, § 1151(g)(2), which added par. (4), had not been enacted, see 1986 Amendment note below. 1988—Subsec. (d)(4). Pub. L. 100–647, § 1011B(a)(31)(B), substituted “there shall” for “there may” and “who are” for “who may be”. Subsec. (d)(5). Pub. L. 100–647, § 4001(b)(2), added par. (5). 1986—Pub. L. 99–514, § 123(a), in amending section generally, substituted “Qualified scholarships” for “Scholarships and fellowship grants” in section catchline. Subsec. (a). Pub. L. 99–514, § 123(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “In the case of an individual, gross income does not include— “(1) any amount received— “(A) as a scholarship at an educational organization described in section 170(b)(1)(A)(ii), or “(B) as a fellowship grant, including the value of contributed services and accommodations; and “(2) any amount received to cover expenses for— “(A) travel, “(B) research, “(C) clerical help, or “(D) equipment, which are incident to such a scholarship or to a fellowship grant, but only to the extent that the amount is so expended by the recipient.” Subsec. (b). Pub. L. 99–514, § 123(a), in amending subsec. (b) generally, substituted qualified scholarship provision for former limitations provision, which related in par. (1) to individuals who were candidates for degrees, and in par. (2) to individuals who were not candidates for degrees, describing in subpar. (A) conditions for exclusion and in subpar. (B) extent of exclusion, such detailed provision now covered in subsec. (c). Subsec. (c). Pub. L. 99–514, § 123(a), in amending subsec. (c) generally, substituted limitation provision for former provision relating to Federal grants for tuition and related expenses not includable merely because there was requirement of future service as Federal employee. Subsec. (d). Pub. L. 99–514, § 123(a), in amending subsec. (d) generally, substituted “reduction” for “reductions” in heading and inserted “(within the meaning of section 414(q))” after “highly compensated employees” in par. (3). Subsec. (d)(3). Pub. L. 99–514, § 1114(b)(2), struck out “officer, owner, or” after “with respect to any” and “officers, owners, or” after “in favor of” and inserted at end “For purposes of this paragraph, the term ‘highly compensated employee’ has the meaning given such term by section 414(q).” Subsec. (d)(4). Pub. L. 99–514, § 1151(g)(2), added par. (4). 1984—Subsec. (d). Pub. L. 98–369 added subsec. (d). 1980—Subsec. (c). Pub. L. 96–541 added subsec. (c). 1976—Subsecs. (a)(1)(A), (b)(1), (2). Pub. L. 94–455, § 1901(b)(8)(A), substituted “educational organization described in section 170(b)(1)(A)(ii)” for “educational institution (as defined in section 151(e)(4))” after “scholarship at an”. Subsec. (b)(2)(A)(iv). Pub. L. 94–455, § 1901(c)(3), struck out “a territory” after “or a State”. Subsec. (b)(2)(B). Pub. L. 94–455, § 1901(b)(8)(A), substituted “educational organization described in section 170(b)(1)(A)(ii)” for “educational institution (as defined in section 151(e)(4))” after “degree at an”. 1961—Subsec. (b)(2)(A). Pub. L. 87–256 included cases where the grantor of the scholarship or fellowship grant is a foreign government, an international organization, or a binational or multinational educational and cultural foundation or commission created or continued pursuant to the Mutual Educational and Cultural Exchange Act of 1961.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2015 AmendmentPub. L. 114–113, div. Q, title III, § 301(b), Dec. 18, 2015, 129 Stat. 3086, provided that: “The amendments made by this section [amending this section] shall apply to amounts received in taxable years beginning after the date of the enactment of this Act [Dec. 18, 2015].”
+
+Effective Date of 2001 AmendmentPub. L. 107–16, title IV, § 413(b), June 7, 2001, 115 Stat. 64, provided that: “The amendments made by subsection (a) [amending this section] shall apply to amounts received in taxable years beginning after December 31, 2001.”
+
+Effective Date of 1996 AmendmentAmendment by Pub. L. 104–188 effective as if included in the provision of the Revenue Reconciliation Act of 1993, Pub. L. 103–66, §§ 13001–13444, to which such amendment relates, see section 1703(o) of Pub. L. 104–188, set out as a note under section 39 of this title.
+
+Effective Date of 1989 AmendmentAmendment by Pub. L. 101–140 effective as if included in section 1151 of Pub. L. 99–514, see section 203(c) of Pub. L. 101–140, set out as a note under section 79 of this title.
+
+Effective Date of 1988 AmendmentAmendment by section 1011B(a)(31)(B) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title. Pub. L. 100–647, title IV, § 4001(c), Nov. 10, 1988, 102 Stat. 3643, provided that: “The amendments made by this section [amending this section and section 127 of this title] shall apply to taxable years beginning after December 31, 1987.”
+
+Effective Date of 1986 AmendmentAmendment by section 123(a) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, but only in the case of scholarships and fellowships granted after Aug. 16, 1986, see section 151(d) of Pub. L. 99–514, set out as a note under section 1 of this title. Amendment by section 1114(b)(2) of Pub. L. 99–514 applicable to years beginning after Dec. 31, 1987, see section 1114(c)(2) of Pub. L. 99–514, set out as a note under section 414 of this title. Amendment by section 1151(g)(2) of Pub. L. 99–514 applicable, with certain qualifications and exceptions, to years beginning after Dec. 31, 1988, see section 1151(k) of Pub. L. 99–514, as amended, set out as a note under section 79 of this title.
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title V, § 532(b), July 18, 1984, 98 Stat. 887, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by this section [amending this section] shall apply to qualified tuition reductions (as defined in section 117(d)(2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) for education furnished after June 30, 1985, in taxable years ending after such date.” Provisions of subsec. (d) treated as in effect on and after Jan. 1, 1984, in case of education described in section 127(c)(8) of this title, see section 1(g)(5) of Pub. L. 98–611, set out as a note under section 127 of this title.
+
+Effective Date of 1980 AmendmentPub. L. 96–541, § 5(a)(2), Dec. 17, 1980, 94 Stat. 3206, provided: “The amendment made by paragraph (1) [amending this section] shall apply to taxable years beginning after December 31, 1980.”
+
+Effective Date of 1976 AmendmentAmendment by Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective Date of 1961 AmendmentPub. L. 87–256, § 110(h)(1), Sept. 21, 1961, 75 Stat. 537, provided that: “The amendments made by subsections (a), (b), and (c) of this section [amending this section and sections 871 and 872 of this title] shall apply to taxable years beginning after December 31, 1961.”
+
+RegulationsSecretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1114 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.
+
+Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99–514 for Fiscal Year 1990No monies appropriated by Pub. L. 101–136 to be used to implement or enforce section 1151 of Pub. L. 99–514 or the amendments made by such section, see section 528 of Pub. L. 101–136, set out as a note under section 89 of this title.
+
+Applicability of Certain Amendments by Public Law 99–514 in Relation to Treaty Obligations of United StatesFor nonapplication of amendment by section 123(a) of Pub. L. 99–514 to the extent application of such amendment would be contrary to any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Pub. L. 100–647 be treated as if it had been included in the provision of Pub. L. 99–514 to which such amendment relates, see section 1012(aa)(3), (4) of Pub. L. 100–647, set out as a note under section 861 of this title.
+
+Plan Amendments Not Required Until January 1, 1989For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.
+
+Transitional Rules for Treatment of Certain Reductions in TuitionPub. L. 99–514, title XVIII, § 1853(f), Oct. 22, 1986, 100 Stat. 2872, provided that: “(1) A tuition reduction plan shall be treated as meeting the requirements of section 117(d)(3) of the Internal Revenue Code of 1954 [now 1986] if—“(A) such plan would have met the requirements of such section (as amended by this section but without regard to the lack of evidence that benefits under such plan were the subject of good faith bargaining) on the day on which eligibility to participate in the plan was closed, “(B) at all times thereafter, the tuition reductions available under such plan are available on substantially the same terms to all employees eligible to participate in such plan, and “(C) the eligibility to participate in such plan closed on June 30, 1972, June 30, 1974, or December 31, 1975. “(2) For purposes of applying section 117(d)(3) of the Internal Revenue Code of 1954 [now 1986] to all tuition reduction plans of an employer with at least 1 such plan described in paragraph (1) of this subsection, there shall be excluded from consideration employees not included in the plan who are included in a unit of employees covered by an agreement that the Secretary of the Treasury or his delegate finds to be a collective bargaining agreement between employee representatives and 1 or more employers, if, with respect to plans other than plans described in paragraph (1), there is evidence that such benefits were the subject of good faith bargaining. “(3) Any reduction in tuition provided with respect to a full-time course of education furnished at the graduate level before July 1, 1988, shall not be included in gross income if—“(A) such reduction would not be included in gross income under the Internal Revenue Service regulations in effect on the date of the enactment of the Tax Reform Act of 1984 [July 18, 1984], and “(B) such reduction is provided with respect to a student who was accepted for admission to such course of education before July 1, 1984, and began such course of education before June 30, 1985.”
+
+National Research Service AwardsPub. L. 95–600, title I, § 161(b), Nov. 6, 1978, 92 Stat. 2810, as amended by Pub. L. 96–167, § 9(b), Dec. 29, 1979, 93 Stat. 1278; Pub. L. 96–541, § 5(b), Dec. 17, 1980, 94 Stat. 3206; Pub. L. 97–248, title II, § 285, Sept. 3, 1982, 96 Stat. 569; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that any amount paid to, or on behalf of, an individual as a national research service award under former section 289l–1 of title 42 during calendar years 1974 through 1983 was to be treated as a scholarship or fellowship grant under this section.
+
+Scholarship Programs for Members of the Uniformed ServicesPub. L. 93–483, § 4, Oct. 26, 1974, 88 Stat. 1458, as amended Pub. L. 94–455, title XXI, § 2130, Oct. 4, 1976, 90 Stat. 1922; Pub. L. 95–171, § 5, Nov. 12, 1977, 91 Stat. 1355; Pub. L. 95–600, title I, § 161(a), Nov. 6, 1978, 92 Stat. 2810; Pub. L. 95–615, title I, § 6, Nov. 8, 1978, 92 Stat. 3098; Pub. L. 96–167, § 9(a), Dec. 29, 1979, 93 Stat. 1278; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(a) In General.—Any amount received from appropriated funds as a scholarship, including the value of contributed services and accommodations, by a member of a uniformed service who is receiving training under the Armed Forces Health Professions Scholarship Program (or any other program determined by the Secretary of the Treasury or his delegate to have substantially similar objectives) from an educational institution (as defined in section 151(e)(4) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) [see section 170(b)(1)(A)(ii) of this title] shall be treated as a scholarship under section 117 of such Code [this section], whether that member is receiving training while on active duty or in an off-duty or inactive status, and without regard to whether a period of active duty is required of the member as a condition of receiving those payments. “(b) Definition of Uniformed Services.—For purposes of this section, the term ‘uniformed service’ has the meaning given it by section 101(3) of title 37, United States Code. “(c) Effective Date.—The provisions of this section shall apply with respect to amounts received during calendar years 1973, 1974, and 1975, and, in the case of a member of a uniformed service receiving training after 1975 and before 1981 in programs described in subsection (a), with respect to amounts received after 1975 and before 1985.” [Section 6 of Pub. L. 95–615, which reenacted § 4(c) of Pub. L. 93–483 without change, to cease to have effect on the day after Nov. 8, 1978, see section 210(a) of Pub. L. 95–615, set out as a note under section 61 of this title.]

legal/us/code/title-26/chapter-1/section-118.md

@@ -0,0 +1,115 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 118"
+description: "Contributions to the capital of a corporation"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "118"
+citation: "26 U.S.C. § 118"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s118"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "a4a095653681a8435d886d9f454cf52277beafb7b9a178ff59f5cb67de7f40cf"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "cc7e7f7229e4ee4c39a9d3218a01e7713dc353749a88a0acda22872cc59e3b34"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 118 - Contributions to the capital of a corporation
+
+## Text
+
+(a) General rule In the case of a corporation, gross income does not include any contribution to the capital of the taxpayer.
+
+(b) Exceptions For purposes of subsection (a), except as provided in subsection (c), the term “contribution to the capital of the taxpayer” does not include—
+
+(1) any contribution in aid of construction or any other contribution as a customer or potential customer, and
+
+(2) any contribution by any governmental entity or civic group (other than a contribution made by a shareholder as such).
+
+(c) Special rules for water and sewerage disposal utilities (1) General rule For purposes of this section, the term “contribution to the capital of the taxpayer” includes any amount of money or other property received from any person (whether or not a shareholder) by a regulated public utility which provides water or sewerage disposal services if—
+
+(A) such amount is—
+
+(i) a contribution in aid of construction, or
+
+(ii) a contribution to the capital of such utility by a governmental entity providing for the protection, preservation, or enhancement of drinking water or sewerage disposal services,
+
+(B) in the case of a contribution in aid of construction which is property other than water or sewerage disposal facilities, such amount meets the requirements of the expenditure rule of paragraph (2), and
+
+(C) such amount (or any property acquired or constructed with such amount) is not included in the taxpayer’s rate base for ratemaking purposes.
+
+(2) Expenditure rule An amount meets the requirements of this paragraph if—
+
+(A) an amount equal to such amount is expended for the acquisition or construction of tangible property described in section 1231(b)—
+
+(i) which is the property for which the contribution was made or is of the same type as such property, and
+
+(ii) which is used predominantly in the trade or business of furnishing water or sewerage disposal services,
+
+(B) the expenditure referred to in subparagraph (A) occurs before the end of the second taxable year after the year in which such amount was received, and
+
+(C) accurate records are kept of the amounts contributed and expenditures made, the expenditures to which contributions are allocated, and the year in which the contributions and expenditures are received and made.
+
+(3) Definitions For purposes of this subsection—
+
+(A) Contribution in aid of construction The term “contribution in aid of construction” shall be defined by regulations prescribed by the Secretary, except that such term shall not include amounts paid as service charges for starting or stopping services.
+
+(B) Predominantly The term “predominantly” means 80 percent or more.
+
+(C) Regulated public utility The term “regulated public utility” has the meaning given such term by section 7701(a)(33), except that such term shall not include any utility which is not required to provide water or sewerage disposal services to members of the general public in its service area.
+
+(4) Disallowance of deductions and credits; adjusted basis Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure which constitutes a contribution in aid of construction to which this subsection applies. The adjusted basis of any property acquired with contributions in aid of construction to which this subsection applies shall be zero.
+
+(d) Statute of limitations If the taxpayer for any taxable year treats an amount as a contribution to the capital of the taxpayer described in subsection (c)(1)(A)(i), then—
+
+(1) the statutory period for the assessment of any deficiency attributable to any part of such amount shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may prescribe) of—
+
+(A) the amount of the expenditure referred to in subparagraph (A) of subsection (c)(2),
+
+(B) the taxpayer’s intention not to make the expenditures referred to in such subparagraph, or
+
+(C) a failure to make such expenditure within the period described in subparagraph (B) of subsection (c)(2), and
+
+(2) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.
+
+(e) Cross references (1) For basis of property acquired by a corporation through a contribution to its capital, see section 362.
+
+(2) For special rules in the case of contributions of indebtedness, see section 108(e)(6).
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 39; Pub. L. 94–455, title XXI, § 2120(a), Oct. 4, 1976, 90 Stat. 1912; Pub. L. 95–600, title III, § 364(a), Nov. 6, 1978, 92 Stat. 2854; Pub. L. 96–589, § 2(e)(2), Dec. 24, 1980, 94 Stat. 3396; Pub. L. 98–369, div. A, title I, § 163(a), July 18, 1984, 98 Stat. 697; Pub. L. 99–514, title VIII, § 824(a), Oct. 22, 1986, 100 Stat. 2374; Pub. L. 104–188, title I, § 1613(a)(1), (2), Aug. 20, 1996, 110 Stat. 1848–1850; Pub. L. 115–97, title I, § 13312(a), Dec. 22, 2017, 131 Stat. 2132; Pub. L. 117–58, div. H, title VI, § 80601(a), Nov. 15, 2021, 135 Stat. 1337.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2021—Subsec. (b). Pub. L. 117–58, § 80601(a)(1), inserted “except as provided in subsection (c),” after “For purposes of subsection (a),” in introductory provisions. Subsecs. (c) to (e). Pub. L. 117–58, § 80601(a)(2), (3), added subsecs. (c) and (d), redesignated former subsec. (d) as (e), and struck out former subsec. (c) which related to regulations. 2017—Subsecs. (b) to (e). Pub. L. 115–97 added subsecs. (b) and (c), redesignated subsec. (e) as (d), and struck out former subsecs. (b) to (d) which related to contributions in aid of construction, special rules for water and sewerage disposal utilities, and statute of limitations for assessment of deficiencies, respectively. 1996—Subsec. (b). Pub. L. 104–188, § 1613(a)(2), inserted “except as provided in subsection (c),” before “the term”. Subsecs. (c) to (e). Pub. L. 104–188, § 1613(a)(1), added subsecs. (c) and (d) and redesignated former subsec. (c) as (e). 1986—Subsec. (b). Pub. L. 99–514, § 824(a), added subsec. (b) and struck out former subsec. (b) relating to contributions in aid of construction, containing par. (1) general rule, par. (2) expenditure rule, par. (3) definitions, and par. (4) disallowance of deductions and investment credit; adjusted basis. Subsecs. (c), (d). Pub. L. 99–514, § 824(a), redesignated former subsec. (d) as (c) and struck out former subsec. (c), statute of limitations, which read as follows: “If the taxpayer for any taxable year treats an amount as a contribution to the capital of the taxpayer described in subsection (b), then— “(1) the statutory period for the assessment of any deficiency attributable to any part of such amount shall not expire before the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may prescribe) of— “(A) the amount of the expenditure referred to in subparagraph (A) of subsection (b)(2), “(B) the taxpayer’s intention not to make the expenditures referred to in such subparagraph, or “(C) a failure to make such expenditure within the period described in subparagraph (B) of subsection (b)(2); and “(2) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.” 1984—Subsecs. (c), (d). Pub. L. 98–369 added subsec. (c) and redesignated former subsec. (c) as (d). 1980—Subsec. (c). Pub. L. 96–589 designated existing provisions as par. (1) and added par. (2). 1978—Subsec. (b)(1). Pub. L. 95–600, § 364(a)(1), (2), substituted in provisions preceding subpar. (A) “electric energy, gas (through a local distribution system or transportation by pipeline), water,” for “water” and in subpar. (B) “electric energy, gas, steam, water,” for “water”. Subsec. (b)(2)(A)(ii). Pub. L. 95–600, § 364(a)(3), substituted “electric energy, gas, steam, water,” for “water”. Subsec. (b)(3)(A). Pub. L. 95–600, § 364(a)(4), substituted “line to an electric line, a gas main, a steam line, or a main water or sewer line” for “property to a main water or sewer line”. Subsec. (b)(3)(C). Pub. L. 95–600, § 364(a)(5), substituted “electric energy, gas, water,” for “water” and inserted “(including in the case of a gas transmission utility, the provision of gas services by sale for resale to the general public)” after “members of the general public”. 1976—Subsecs. (b), (c). Pub. L. 94–455, § 2120(a), added subsec. (b) and redesignated former subsec. (b) as (c).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2021 AmendmentPub. L. 117–58, div. H, title VI, § 80601(b), Nov. 15, 2021, 135 Stat. 1338, provided that: “The amendments made by this section [amending this section] shall apply to contributions made after December 31, 2020.”
+
+Effective Date of 2017 AmendmentPub. L. 115–97, title I, § 13312(b), Dec. 22, 2017, 131 Stat. 2132, provided that: “(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to contributions made after the date of enactment of this Act [Dec. 22, 2017]. “(2) Exception.—The amendments made by this section shall not apply to any contribution, made after the date of enactment of this Act by a governmental entity, which is made pursuant to a master development plan that has been approved prior to such date by a governmental entity.”
+
+Effective Date of 1996 AmendmentPub. L. 104–188, title I, § 1613(a)(3), Aug. 20, 1996, 110 Stat. 1850, provided that: “The amendments made by this subsection [amending this section] shall apply to amounts received after June 12, 1996.”
+
+Effective Date of 1986 AmendmentPub. L. 99–514, title VIII, § 824(c), Oct. 22, 1986, 100 Stat. 2374, as amended by Pub. L. 100–647, title I, § 1008(j)(2), Nov. 10, 1988, 102 Stat. 3445, provided that: “(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and section 362 of this title] shall apply to amounts received after December 31, 1986, in taxable years ending after such date. “(2) Treatment of certain water supply projects.—The amendments made by this section shall not apply to amounts which are paid by the New Jersey Department of Environmental Protection for construction of alternative water supply projects in zones of drinking water contamination and which are designated by such department as being taken into account under this paragraph. Not more than $4,631,000 of such amounts may be designated under the preceding sentence. “(3) Treatment of certain contributions by transportation authority.—The amendments made by this section shall not apply to contributions in aid of construction by a qualified transportation authority which were clearly identified in a master plan in existence on September 13, 1984, and which are designated by such authority as being taken into account under this paragraph. Not more than $68,000,000 of such contributions may be designated under the preceding sentence. For purposes of this paragraph, a qualified transportation authority is an entity which was created on February 20, 1967, and which was established by an interstate compact and consented to by Congress in Public Law 89–774, 80 Stat. 1324 (1966). “(4) Treatment of certain partnerships.—In the case of a partnership with a taxable year beginning May 1, 1986, if such partnership realized net capital gain during the period beginning on the 1st day of such taxable year and ending on May 29, 1986, pursuant to an underwriting agreement dated May 6, 1986, then such partnership may elect to treat each asset to which such net capital gain relates as having been distributed to the partners of such partnership in proportion to their distributive share of the capital gain or loss realized by the partnership with respect to such asset and to treat each such asset as having been sold by each partner on the date of the sale of the asset by the partnership. If such an election is made, the consideration received by the partnership in connection with the sale of such assets shall be treated as having been received by the partners in connection with the deemed sale of such assets. In the case of a tiered partnership, for purposes of this paragraph each partnership shall be treated as having realized net capital gain equal to its proportionate share of the net capital gain of each partnership in which it is a partner, and the election provided by this paragraph shall apply to each tier.”
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 163(c), July 18, 1984, 98 Stat. 698, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section [amending this section and sections 6501 and 6511 of this title] shall apply to expenditures with respect to which the second taxable year described in [former] section 118(b)(2)(B) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] ends after December 31, 1984.”
+
+Effective Date of 1980 AmendmentAmendment by Pub. L. 96–589 applicable to transactions which occur after Dec. 31, 1980, other than transactions which occur in a proceeding in a bankruptcy case or similar judicial proceeding or in a proceeding under Title 11 commencing on or after Dec. 31, 1980, with an exception permitting the debtor to make the amendment applicable to transactions occurring after Sept. 30, 1979, in a specified manner, see section 7(a)(1), (f) of Pub. L. 96–589, set out as a note under section 108 of this title.
+
+Effective Date of 1978 AmendmentPub. L. 95–600, title III, § 364(b), Nov. 6, 1978, 92 Stat. 2854, provided that: “The amendments made by this section [amending this section] shall apply to contributions made after January 31, 1976.”
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XXI, § 2120(c), Oct. 4, 1976, 90 Stat. 1913, provided that: “The amendments made by this section [amending this section and section 362 of this title] apply to contributions made after January 31, 1976.”

legal/us/code/title-26/chapter-1/section-119.md

@@ -0,0 +1,137 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 119"
+description: "Meals or lodging furnished for the convenience of the employer"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "119"
+citation: "26 U.S.C. § 119"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s119"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "7daab85b1783647ba3af8d5a378176f024ef1ccd05594d2ee98568ce114536d8"
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+text_hash: "ca50a658cb5b053f17101645e1df8a602faf319e8245aeab4c81d424688ee694"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 119 - Meals or lodging furnished for the convenience of the employer
+
+## Text
+
+(a) Meals and lodging furnished to employee, his spouse, and his dependents, pursuant to employment There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him, his spouse, or any of his dependents by or on behalf of his employer for the convenience of the employer, but only if—
+
+(1) in the case of meals, the meals are furnished on the business premises of the employer, or
+
+(2) in the case of lodging, the employee is required to accept such lodging on the business premises of his employer as a condition of his employment.
+
+(b) Special rules For purposes of subsection (a)—
+
+(1) Provisions of employment contract or State statute not to be determinative In determining whether meals or lodging are furnished for the convenience of the employer, the provisions of an employment contract or of a State statute fixing terms of employment shall not be determinative of whether the meals or lodging are intended as compensation.
+
+(2) Certain factors not taken into account with respect to meals In determining whether meals are furnished for the convenience of the employer, the fact that a charge is made for such meals, and the fact that the employee may accept or decline such meals, shall not be taken into account.
+
+(3) Certain fixed charges for meals (A) In general If—
+
+(i) an employee is required to pay on a periodic basis a fixed charge for his meals, and
+
+(ii) such meals are furnished by the employer for the convenience of the employer,
+
+there shall be excluded from the employee’s gross income an amount equal to such fixed charge.
+
+(B) Application of subparagraph (A) Subparagraph (A) shall apply—
+
+(i) whether the employee pays the fixed charge out of his stated compensation or out of his own funds, and
+
+(ii) only if the employee is required to make the payment whether he accepts or declines the meals.
+
+(4) Meals furnished to employees on business premises where meals of most employees are otherwise excludable All meals furnished on the business premises of an employer to such employer’s employees shall be treated as furnished for the convenience of the employer if, without regard to this paragraph, more than half of the employees to whom such meals are furnished on such premises are furnished such meals for the convenience of the employer.
+
+(c) Employees living in certain camps (1) In general In the case of an individual who is furnished lodging in a camp located in a foreign country by or on behalf of his employer, such camp shall be considered to be part of the business premises of the employer.
+
+(2) Camp For purposes of this section, a camp constitutes lodging which is—
+
+(A) provided by or on behalf of the employer for the convenience of the employer because the place at which such individual renders services is in a remote area where satisfactory housing is not available on the open market,
+
+(B) located, as near as practicable, in the vicinity of the place at which such individual renders services, and
+
+(C) furnished in a common area (or enclave) which is not available to the public and which normally accommodates 10 or more employees.
+
+(d) Lodging furnished by certain educational institutions to employees (1) In general In the case of an employee of an educational institution, gross income shall not include the value of qualified campus lodging furnished to such employee during the taxable year.
+
+(2) Exception in cases of inadequate rent Paragraph (1) shall not apply to the extent of the excess of—
+
+(A) the lesser of—
+
+(i) 5 percent of the appraised value of the qualified campus lodging, or
+
+(ii) the average of the rentals paid by individuals (other than employees or students of the educational institution) during such calendar year for lodging provided by the educational institution which is comparable to the qualified campus lodging provided to the employee, over
+
+(B) the rent paid by the employee for the qualified campus lodging during such calendar year.
+
+The appraised value under subparagraph (A)(i) shall be determined as of the close of the calendar year in which the taxable year begins, or, in the case of a rental period not greater than 1 year, at any time during the calendar year in which such period begins.
+
+(3) Qualified campus lodging For purposes of this subsection, the term “qualified campus lodging” means lodging to which subsection (a) does not apply and which is—
+
+(A) located on, or in the proximity of, a campus of the educational institution, and
+
+(B) furnished to the employee, his spouse, and any of his dependents by or on behalf of such institution for use as a residence.
+
+(4) Educational institution, etc. For purposes of this subsection—
+
+(A) In general The term “educational institution” means—
+
+(i) an institution described in section 170(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or
+
+(ii) an academic health center.
+
+(B) Academic health center For purposes of subparagraph (A), the term “academic health center” means an entity—
+
+(i) which is described in section 170(b)(1)(A)(iii),
+
+(ii) which receives (during the calendar year in which the taxable year of the taxpayer begins) payments under subsection (d)(5)(B) or (h) of section 1886 of the Social Security Act (relating to graduate medical education), and
+
+(iii) which has as one of its principal purposes or functions the providing and teaching of basic and clinical medical science and research with the entity’s own faculty.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 39; Pub. L. 95–427, § 4(a), Oct. 7, 1978, 92 Stat. 997; Pub. L. 95–615, title II, § 205, Nov. 8, 1978, 92 Stat. 3107; Pub. L. 96–222, title I, § 108(a)(1)(G), Apr. 1, 1980, 94 Stat. 225; Pub. L. 97–34, title I, § 113, Aug. 13, 1981, 95 Stat. 195; Pub. L. 99–514, title XI, § 1164(a), Oct. 22, 1986, 100 Stat. 2511; Pub. L. 100–647, title I, § 1011B(d), Nov. 10, 1988, 102 Stat. 3489; Pub. L. 104–188, title I, § 1123(a), Aug. 20, 1996, 110 Stat. 1768; Pub. L. 105–206, title V, § 5002(a), July 22, 1998, 112 Stat. 788.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 1886(d)(5)(B) or (h) of the Social Security Act, referred to in subsec. (d)(4)(B)(ii), is classified to section 1395ww(d)(5)(B) or (h) of Title 42, The Public Health and Welfare.
+
+Amendments1998—Subsec. (b)(4). Pub. L. 105–206 added par. (4). 1996—Subsec. (d)(4). Pub. L. 104–188 amended par. (4) generally. Prior to amendment, par. (4) read as follows: “Educational institution.—For purposes of this paragraph, the term ‘educational institution’ means an institution described in section 170(b)(1)(A)(ii).” 1988—Subsec. (d). Pub. L. 100–647 struck out “(as of the close of the calendar year in which the taxable year begins)” after “appraised value” in par. (2)(A)(i) and inserted at end “The appraised value under subparagraph (A)(i) shall be determined as of the close of the calendar year in which the taxable year begins, or, in the case of a rental period not greater than 1 year, at any time during the calendar year in which such period begins.” as concluding provision. 1986—Subsec. (d). Pub. L. 99–514 added subsec. (d). 1981—Subsec. (c). Pub. L. 97–34 added subsec. (c). 1980—Subsec. (a). Pub. L. 96–222 struck out “General rule” in subsec. (a) as in effect on the day before the date of enactment of the Foreign Earned Income Act of 1978 to correct a legislative oversight in the amendment of subsec. (a) of this section by section 205 of Pub. L. 95–615. The amendment by Pub. L. 95–615, however, was executed without reference to “General rule” as the probable intent of Congress, thereby requiring no change in text. 1978—Subsec. (a). Pub. L. 95–615 designated existing provisions as subsec. (a), added subsec. (a) heading, and substituted “furnished to him, his spouse, or any of his dependents by or on behalf of his employer for the convenience of the employer” for “furnished to him by his employer for the convenience of the employer”. Pub. L. 95–427 inserted provisions relating to factors not taken into account with respect to meals and certain fixed charges for meals.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1998 AmendmentPub. L. 105–206, title v, § 5002(b), July 22, 1998, 112 Stat. 789, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning before, on, or after the date of the enactment of this Act [July 22, 1998].”
+
+Effective Date of 1996 AmendmentPub. L. 104–188, title I, § 1123(b), Aug. 20, 1996, 110 Stat. 1768, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1995.”
+
+Effective Date of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
+
+Effective Date of 1986 AmendmentPub. L. 99–514, title XI, § 1164(b), Oct. 22, 1986, 100 Stat. 2511, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1985.”
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable with respect to taxable years beginning after Dec. 31, 1981, see section 115 of Pub. L. 97–34, set out as a note under section 911 of this title.
+
+Effective Date of 1980 AmendmentAmendment by Pub. L. 96–222 effective as if included in the Foreign Earned Income Act of 1978, Pub. L. 95–615, see section 108(a)(2)(A) of Pub. L. 96–222, set out as a note under section 3 of this title.
+
+Effective Date of 1978 AmendmentPub. L. 95–427, § 4(b), Oct. 7, 1978, 92 Stat. 998, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to taxable years beginning after December 31, 1953, and ending after August 16, 1954.”
+
+Effective Date of 1978 Amendment; Election of Prior LawAmendment by Pub. L. 95–615 applicable to taxable years beginning after Dec. 31, 1977, with provision for election of prior law, see section 209 of Pub. L. 95–615, set out as a note under section 911 of this title.
+
+Statute of LimitationsPub. L. 96–605, title I, § 107(b), Dec. 28, 1980, 94 Stat. 3524, provided that: “In the case of any allowance received during calendar year 1974, 1975, 1976, or 1977, subsections (a)(2) and (e) of such section 3 [section 3 of Pub. L. 95–427, set out below] shall be applied by substituting the date one year after the date of the enactment of this Act [Dec. 28, 1980] for ‘April 15, 1979’ each place it appears.”
+
+Treatment of Certain Statutory Subsistence Allowances or Subsistence Allowances Negotiated in Accordance With State Law Received by State Police Officers Before January 1, 1978Pub. L. 95–427, § 3, Oct. 7, 1978, 92 Stat. 996, as amended by Pub. L. 96–605, title I, § 107(a), Dec. 28, 1980, 94 Stat. 3524; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “(a) General Rule.—If—“(1) an individual who was employed as a State police officer received a statutory subsistence allowance or a subsistence allowance negotiated in accordance with State law while so employed, “(2) such individual elects, on or before April 15, 1979, and in such manner and form as the Secretary of the Treasury may prescribe, to have this section apply to such allowance, and “(3) this section applies to such allowance, then, for purposes of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], such allowance shall not be included in such individual’s gross income. “(b) Allowances to Which Section Applies.—For purposes of this section, this section applies to any statutory subsistence allowance or subsistence allowance negotiated in accordance with State law which was received—“(1) after December 31, 1969, and before January 1, 1974, to the extent such individual did not include such allowance in gross income on his income tax return for the taxable year in which such allowance was received, or “(2) during the calendar year 1974, 1975, 1976, or 1977. “(c) Other Definitions.—For purposes of this section—“(1) State police officer.—The term ‘State police officer’ means any police officer (including a highway patrolman) employed by a State (or the District of Columbia) on a full-time basis with the power to arrest. “(2) Income tax return.—The term ‘income tax return’ means the return of the taxes imposed by subtitle A of the Internal Revenue Code of 1986. If an individual filed before November 29, 1977, an amended return for any taxable year, such amended return shall be treated as the return for such taxable year. “(d) Limitation on Deduction.—If any individual receives a subsistence allowance which is excluded from gross income under subsection (a), no deduction shall be allowed under any provision of chapter 1 of the Internal Revenue Code of 1986 for expenses in respect of which he has received such allowance, except to the extent that such expenses exceed the amount excludable from gross income under subsection (a) and the excess is otherwise allowed as a deduction under such chapter 1. “(e) Statute of Limitations.—If refund or credit of any overpayment of tax resulting from the application of this section is prevented at any time on or before April 15, 1979, by the operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to the application of this section) may, nevertheless, be made or allowed if claim therefor is filed on or before April 15, 1979.”

legal/us/code/title-26/chapter-1/section-12.md

@@ -0,0 +1,69 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 12"
+description: "Cross references relating to tax on corporations"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "12"
+citation: "26 U.S.C. § 12"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s12"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "b42cfd493b8c24fa87e2d6159a80019dd790b386bc556d37e4ae69ccb7ab628f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "209edebb3436875b352bea17eed03dd0f21380e0be1f1db4423e3e95c91acf25"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 12 - Cross references relating to tax on corporations
+
+## Text
+
+(1) For tax on the unrelated business income of certain charitable and other corporations exempt from tax under this chapter, see section 511.
+
+(2) For accumulated earnings tax and personal holding company tax, see parts I and II of subchapter G (sec. 531 and following).
+
+(3) For doubling of tax on corporations of certain foreign countries, see section 891.
+
+(4) For rate of withholding in case of foreign corporations, see section 1442.
+
+(5) For alternative minimum tax, see section 55.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 11; Pub. L. 88–272, title II, § 234(b)(4), Feb. 26, 1964, 78 Stat. 115; Pub. L. 91–172, title III, § 301(b)(3), Dec. 30, 1969, 83 Stat. 585; Pub. L. 94–12, title III, § 303(c)(2), Mar. 29, 1975, 89 Stat. 44; Pub. L. 95–600, title III, § 301(b)(1), Nov. 6, 1978, 92 Stat. 2820; Pub. L. 98–369, div. A, title IV, § 474(r)(29)(E), July 18, 1984, 98 Stat. 844; Pub. L. 99–514, title VII, § 701(e)(4)(B), Oct. 22, 1986, 100 Stat. 2343; Pub. L. 115–97, title I, §§ 12001(b)(12), 13001(b)(2)(B), Dec. 22, 2017, 131 Stat. 2094, 2096; Pub. L. 117–169, title I, § 10101(a)(4)(D), Aug. 16, 2022, 136 Stat. 1822.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2022—Par. (5). Pub. L. 117–169 added par. (5). 2017—Pars. (4) to (6). Pub. L. 115–97, § 13001(b)(2)(B), redesignated par. (5) as (4) and struck out former pars. (4) and (6) which read as follows: “(4) For alternative tax in case of capital gains, see section 1201(a). “(6) For limitation on benefits of graduated rate schedule provided in section 11(b), see section 1551.” Par. (7). Pub. L. 115–97, § 12001(b)(12), struck out par. (7) which read as follows: “For alternative minimum tax, see section 55.” 1986—Par. (7). Pub. L. 99–514 amended par. (7) generally, substituting “alternative minimum tax” and “55” for “minimum tax for tax preferences” and “56”, respectively. 1984—Pars. (6) to (8). Pub. L. 98–369 redesignated pars. (7) and (8) as (6) and (7), respectively. Former par. (6), which referred to section 1451 for withholding of tax on tax-free covenant bonds, was struck out. 1978—Par. (7). Pub. L. 95–600 substituted “benefits of graduated rate schedule provided in section 11(b)” for “the $25,000 exemption from surtax provided in section 11(c)”. 1975—Par. (7). Pub. L. 94–12 substituted “$50,000” for “$25,000” for a limited period. See Effective and Termination Dates of 1975 Amendment note set out below. 1969—Par. (8). Pub. L. 91–172 added par. (8). 1964—Par. (8). Pub. L. 88–272 struck out par. (8) which referred to section 1503 for additional tax for corporations filing consolidated returns.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2022 AmendmentAmendment by Pub. L. 117–169 applicable to taxable years beginning after Dec. 31, 2022, see section 10101(f) of Pub. L. 117–169, set out as a note under section 11 of this title.
+
+Effective Date of 2017 AmendmentAmendment by section 12001(b)(12) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 12001(c) of Pub. L. 115–97, set out as a note under section 11 of this title. Amendment by section 13001(b)(2)(B) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13001(c)(1) of Pub. L. 115–97, set out as a note under section 11 of this title.
+
+Effective Date of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an Effective Date note under section 55 of this title.
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 not applicable with respect to obligations issued before Jan. 1, 1984, see section 475(b) of Pub. L. 98–369, set out as a note under section 33 of this title.
+
+Effective Date of 1978 AmendmentAmendment by Pub. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 301(c) of Pub. L. 95–600, set out as a note under section 11 of this title.
+
+Effective and Termination Dates of 1975 AmendmentAmendment by Pub. L. 94–12 applicable to taxable years ending after Dec. 31, 1974, but to cease to apply for taxable years ending after Dec. 31, 1975, see section 305(b)(1) of Pub. L. 94–12, set out as a note under section 11 of this title.
+
+Effective Date of 1969 AmendmentAmendment by Pub. L. 91–172 applicable to taxable years ending after Dec. 31, 1969, see section 301(c) of Pub. L. 91–172, set out as a note under section 5 of this title.
+
+Effective Date of 1964 AmendmentAmendment by Pub. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 234(c) of Pub. L. 88–272, set out as a note under section 1503 of this title.
+
+Applicability of Certain Amendments by Public Law 99–514 in Relation to Treaty Obligations of United StatesFor applicability of amendment by Pub. L. 99–514 notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, see section 1012(aa)(2) of Pub. L. 100–647, set out as a note under section 861 of this title.

legal/us/code/title-26/chapter-1/section-120.md

@@ -0,0 +1,39 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 120"
+description: "Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(19)(A), Dec. 19, 2014, 128 Stat. 4039]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "120"
+citation: "26 U.S.C. § 120"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s120"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "ccf6676f513ecbeae2d43bf997a7251960b3f91710032c746b7008a23fbf8066"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "fceac1904ab332330d8905c8fc5b7923bf73e0fd03e7fcd880a205fe2b3c7fa8"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 120 - Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(19)(A), Dec. 19, 2014, 128 Stat. 4039]
+
+## Notes
+
+Section, added Pub. L. 94–455, title XXI, § 2134(a), Oct. 4, 1976, 90 Stat. 1926; amended Pub. L. 97–34, title VIII, § 802(a), Aug. 13, 1981, 95 Stat. 349; Pub. L. 97–448, title I, § 108(a), Jan. 12, 1983, 96 Stat. 2391; Pub. L. 98–612, § 1(a), (b)(3)(A), Oct. 31, 1984, 98 Stat. 3180, 3181; Pub. L. 99–514, title XI, §§ 1114(b)(3), 1151(c)(3), (g)(1), 1162(b), Oct. 22, 1986, 100 Stat. 2450, 2503, 2506, 2510; Pub. L. 100–647, title I, § 1011B(a)(31)(B), title IV, § 4002(a), (b)(1), Nov. 10, 1988, 102 Stat. 3488, 3643; Pub. L. 101–140, title II, § 203(a)(1), (2), Nov. 8, 1989, 103 Stat. 830; Pub. L. 101–239, title VII, § 7102(a)(1), Dec. 19, 1989, 103 Stat. 2305; Pub. L. 101–508, title XI, § 11404(a), Nov. 5, 1990, 104 Stat. 1388–473; Pub. L. 102–227, title I, § 104(a)(1), Dec. 11, 1991, 105 Stat. 1687; Pub. L. 108–311, title II, § 207(10), Oct. 4, 2004, 118 Stat. 1177, related to amounts received under qualified group legal services plans.
+
+A prior section 120, act Aug. 16, 1954, ch. 736, 68A Stat. 39, related to statutory subsistence allowance received by police, prior to repeal by Pub. L. 85–866, title I, § 3(a), (c), Sept. 2, 1958, 72 Stat. 1607, effective with respect to taxable years ending after Sept. 30, 1958, but only with respect to amounts received as a statutory subsistence allowance for any day after Sept. 30, 1958.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as an Effective Date of 2014 Amendment note under section 1 of this title.

legal/us/code/title-26/chapter-1/section-1201.md

@@ -0,0 +1,39 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1201"
+description: "Repealed. Pub. L. 115–97, title I, § 13001(b)(2)(A), Dec. 22, 2017, 131 Stat. 2096]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1201"
+citation: "26 U.S.C. § 1201"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1201"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "aee7606fd856eb44a152c8340e2878883ba114a8352ef37b8ebfb760ad025cde"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "69a2378e93a4e27733ede3e004c4cd5068255e7580d900c676a4903c4bd0fca1"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1201 - Repealed. Pub. L. 115–97, title I, § 13001(b)(2)(A), Dec. 22, 2017, 131 Stat. 2096]
+
+## Notes
+
+Section, Aug. 16, 1954, ch. 736, 68A Stat. 320; Mar. 13, 1956, ch. 83, § 5(7), 70 Stat. 49; Pub. L. 86–69, § 3(f)(2), June 25, 1959, 73 Stat. 140; Pub. L. 87–834, § 8(g)(3), Oct. 16, 1962, 76 Stat. 999; Pub. L. 91–172, title V, § 511(b), Dec. 30, 1969, 83 Stat. 635; Pub. L. 94–455, title XIX, § 1901(a)(135), (b)(33)(L), Oct. 4, 1976, 90 Stat. 1786, 1801; Pub. L. 95–600, title IV, §§ 401(a), 403(a), (b), Nov. 6, 1978, 92 Stat. 2866, 2868; Pub. L. 96–222, title I, § 104(a)(2)(B), (3)(A), Apr. 1, 1980, 94 Stat. 214, 215; Pub. L. 98–369, div. A, title II, § 211(b)(16), July 18, 1984, 98 Stat. 756; Pub. L. 99–514, title III, § 311(a), title X, § 1024(c)(14), Oct. 22, 1986, 100 Stat. 2219, 2408; Pub. L. 100–647, title I, § 1003(c)(1), title II, § 2004(l), Nov. 10, 1988, 102 Stat. 3384, 3606; Pub. L. 103–66, title XIII, § 13221(c)(2), Aug. 10, 1993, 107 Stat. 477; Pub. L. 104–188, title I, § 1703(f), Aug. 20, 1996, 110 Stat. 1876; Pub. L. 105–34, title III, § 314(a), Aug. 5, 1997, 111 Stat. 842; Pub. L. 110–234, title XV, § 15311(a), May 22, 2008, 122 Stat. 1502; Pub. L. 110–246, § 4(a), title XV, § 15311(a), June 18, 2008, 122 Stat. 1664, 2264; Pub. L. 114–113, div. Q, title III, § 334(a), Dec. 18, 2015, 129 Stat. 3108, related to alternative tax for corporations.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to taxable years beginning after Dec. 31, 2017, see section 13001(c)(1) of Pub. L. 115–97, set out as an Effective Date of 2017 Amendment note under section 11 of this title.
+
+Extension of Special Rule Relating to Qualified Timber GainPub. L. 115–123, div. D, title I, § 40310, Feb. 9, 2018, 132 Stat. 147, provided that: “For purposes of applying section 1201(b) of the Internal Revenue Code of 1986 with respect to taxable years beginning during 2017, such section shall be applied by substituting ‘2016 or 2017’ for ‘2016’.”

legal/us/code/title-26/chapter-1/section-1211.md

@@ -0,0 +1,57 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1211"
+description: "Limitation on capital losses"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1211"
+citation: "26 U.S.C. § 1211"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1211"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "48b40712e78ac45845addb335ab8f85e970c098686adbabf7e0ffdf59b6b9d2e"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "abba63476590769c215e2f980b2bf1873ae45ee45d179243a2710baf48017d98"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1211 - Limitation on capital losses
+
+## Text
+
+(a) Corporations In the case of a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of gains from such sales or exchanges.
+
+(b) Other taxpayers In the case of a taxpayer other than a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) the lower of—
+
+(1) $3,000 ($1,500 in the case of a married individual filing a separate return), or
+
+(2) the excess of such losses over such gains.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 321; Pub. L. 91–172, title V, § 513(a), Dec. 30, 1969, 83 Stat. 642; Pub. L. 94–455, title V, § 501(b)(6), title XIV, § 1401(a), (b), Oct. 4, 1976, 90 Stat. 1559, 1731; Pub. L. 95–30, title I, § 102(b)(14), May 23, 1977, 91 Stat. 138; Pub. L. 99–514, title III, § 301(b)(10), Oct. 22, 1986, 100 Stat. 2217.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1986—Subsec. (b). Pub. L. 99–514 amended subsec. (b) generally, substituting present provisions for provisions which had declared in: par. (1), general rule for limitation on capital losses for taxpayer other than corporation; in par. (2), meaning of term “applicable amount”; and in par. (3), rule relating to computation of taxable income. 1977—Subsec. (b)(1)(A). Pub. L. 95–30 inserted “reduced (but not below zero) by the zero bracket amount” after “taxable year”. 1976—Subsec. (b)(1)(B). Pub. L. 94–455, § 1401(a), substituted “the applicable amount” for “$1,000”. Subsec. (b)(2). Pub. L. 94–455, § 1401(b), substituted provision relating to “applicable amount” for prior provision limiting amount of capital losses for married individuals and reading “In the case of a husband or wife who files a separate return, the amount specified in paragraph (1)(B) shall be $500 in lieu of $1,000.” Subsec. (b)(3). Pub. L. 94–455, § 501(b)(6), struck out last sentence “If the taxpayer elects to pay the optional tax imposed by section 3, ‘taxable income’ as used in this subsection shall read as ‘adjusted gross income’.” 1969—Subsec. (b). Pub. L. 91–172 provided for only 50 percent of an individual’s long-term capital losses to be offset against his ordinary income up to the $1,000 limit although short-term capital losses continue to be fully deductible within the $1,000 limit and the deduction of capital losses against ordinary income for married persons filing separate returns to be limited to $500 for each spouse rather than the $1,000 formerly allowed.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 301(c) of Pub. L. 99–514, set out as a note under section 62 of this title.
+
+Effective Date of 1977 AmendmentAmendment by Pub. L. 95–30 applicable to taxable years beginning after Dec. 31, 1976, see section 106(a) of Pub. L. 95–30, set out as a note under section 1 of this title.
+
+Effective Date of 1976 AmendmentAmendment by section 501(b)(6) of Pub. L. 94–455 applicable to taxable years beginning after Dec. 31, 1975, see section 508 of Pub. L. 94–455, set out as a note under section 3 of this title. Pub. L. 94–455, title XIV, § 1401(c), Oct. 4, 1976, 90 Stat. 1731, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1976.”
+
+Effective Date of 1969 AmendmentPub. L. 91–172, title V, § 513(d), Dec. 30, 1969, 83 Stat. 643, provided that: “The amendments made by this section [amending this section and sections 1212 and 1222 of this title] shall apply to taxable years beginning after December 31, 1969.”

legal/us/code/title-26/chapter-1/section-122.md

@@ -0,0 +1,59 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 122"
+description: "Certain reduced uniformed services retirement pay"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "122"
+citation: "26 U.S.C. § 122"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s122"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "5cb58bcd85814b9f14dd60174a9e3cfc025178751164c4c8a618969b32fab0c1"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "e66139711be48ccf96d4e5736e7a1d576df772b5ede54703863be4823aad75de"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 122 - Certain reduced uniformed services retirement pay
+
+## Text
+
+(a) General rule In the case of a member or former member of the uniformed services of the United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code.
+
+(b) Special rule (1) Amount excluded from gross income In the case of any individual referred to in subsection (a), all amounts received as retired or retainer pay shall be excluded from gross income until there has been so excluded an amount equal to the consideration for the contract. The preceding sentence shall apply only to the extent that the amounts received would, but for such sentence, be includible in gross income.
+
+(2) Consideration for the contract For purposes of paragraph (1) and section 72(n), the term “consideration for the contract” means, in respect of any individual, the sum of—
+
+(A) the total amount of the reductions before January 1, 1966, in his retired or retainer pay by reason of an election under chapter 73 of title 10 of the United States Code, and
+
+(B) any amounts deposited at any time by him pursuant to section 1438 or 1452(d) of such title 10.
+
+(Added Pub. L. 89–365, § 1(a)(1), Mar. 8, 1966, 80 Stat. 32; amended Pub. L. 93–406, title II, §§ 2005(c)(10), 2007(a), (b)(1), Sept. 2, 1974, 88 Stat. 992, 994; Pub. L. 113–295, div. A, title II, § 221(a)(21), Dec. 19, 2014, 128 Stat. 4040.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 122 was renumbered section 140 of this title.
+
+Amendments2014—Subsec. (b)(1). Pub. L. 113–295 struck out “after December 31, 1965,” after “all amounts received”. 1974—Subsec. (a). Pub. L. 93–406, § 2007(a), substituted “United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code” for “United States who has made an election under chapter 73 of title 10 of the United States Code to receive a reduced amount of retired or retainer pay, gross income does not include the amount of any reduction after December 31, 1965, in his retired or retainer pay by reason of such election”. Subsec. (b)(2). Pub. L. 93–406, § 2005(c)(10), substituted “72(n)” for “72(o)”. Subsec. (b)(2)(B). Pub. L. 93–406, § 2007(b)(1), inserted reference to section 1452(d) of title 10.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 1974 AmendmentAmendment by section 2005(c)(10) of Pub. L. 93–406 applicable only with respect to distributions or payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93–406, set out as a note under section 402 of this title. Pub. L. 93–406, title II, § 2007(c), Sept. 2, 1974, 88 Stat. 993, provided that: “The amendments made by this section [amending this section and sections 72, 101, and 2039 of this title] apply to taxable years ending on or after September 21, 1972. The amendments made by paragraphs (3) and (4) of subsection (b) [amending sections 101 and 2039 of this title] apply with respect to individuals dying on or after such date”.
+
+Effective DatePub. L. 89–365, § 1(d), Mar. 10, 1966, 80 Stat. 33, provided that: “The amendments made by subsections (a) and (b) [enacting this section and amending section 72 of this title] shall apply with respect to taxable years ending after December 31, 1965. The amendment made by subsection (c) [amending section 101 of this title] shall apply with respect to individuals making an election under chapter 73 of title 10 of the United States Code who die after December 31, 1965.”

legal/us/code/title-26/chapter-1/section-1221.md

@@ -0,0 +1,121 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1221"
+description: "Capital asset defined"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1221"
+citation: "26 U.S.C. § 1221"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1221"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "4026856a10cbea3338a32f578b8bd4f88ea7d6eef8968f51676d7f356fb07576"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "4ee13da8f532c5f7d65b062b7f996cab3ddaa7712400aaa435372f9899cb81c5"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1221 - Capital asset defined
+
+## Text
+
+(a) In general For purposes of this subtitle, the term “capital asset” means property held by the taxpayer (whether or not connected with his trade or business), but does not include—
+
+(1) stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business;
+
+(2) property, used in his trade or business, of a character which is subject to the allowance for depreciation provided in section 167, or real property used in his trade or business;
+
+(3) a patent, invention, model or design (whether or not patented), a secret formula or process, a copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property, held by—
+
+(A) a taxpayer whose personal efforts created such property,
+
+(B) in the case of a letter, memorandum, or similar property, a taxpayer for whom such property was prepared or produced, or
+
+(C) a taxpayer in whose hands the basis of such property is determined, for purposes of determining gain from a sale or exchange, in whole or part by reference to the basis of such property in the hands of a taxpayer described in subparagraph (A) or (B);
+
+(4) accounts or notes receivable acquired in the ordinary course of trade or business for services rendered or from the sale of property described in paragraph (1);
+
+(5) a publication of the United States Government (including the Congressional Record) which is received from the United States Government or any agency thereof, other than by purchase at the price at which it is offered for sale to the public, and which is held by—
+
+(A) a taxpayer who so received such publication, or
+
+(B) a taxpayer in whose hands the basis of such publication is determined, for purposes of determining gain from a sale or exchange, in whole or in part by reference to the basis of such publication in the hands of a taxpayer described in subparagraph (A);
+
+(6) any commodities derivative financial instrument held by a commodities derivatives dealer, unless—
+
+(A) it is established to the satisfaction of the Secretary that such instrument has no connection to the activities of such dealer as a dealer, and
+
+(B) such instrument is clearly identified in such dealer’s records as being described in subparagraph (A) before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may by regulations prescribe);
+
+(7) any hedging transaction which is clearly identified as such before the close of the day on which it was acquired, originated, or entered into (or such other time as the Secretary may by regulations prescribe); or
+
+(8) supplies of a type regularly used or consumed by the taxpayer in the ordinary course of a trade or business of the taxpayer.
+
+(b) Definitions and special rules (1) Commodities derivative financial instruments For purposes of subsection (a)(6)—
+
+(A) Commodities derivatives dealer The term “commodities derivatives dealer” means a person which 11 So in original. Probably should be “who”. regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the ordinary course of a trade or business.
+
+(B) Commodities derivative financial instrument (i) In general The term “commodities derivative financial instrument” means any contract or financial instrument with respect to commodities (other than a share of stock in a corporation, a beneficial interest in a partnership or trust, a note, bond, debenture, or other evidence of indebtedness, or a section 1256 contract (as defined in section 1256(b))), the value or settlement price of which is calculated by or determined by reference to a specified index.
+
+(ii) Specified index The term “specified index” means any one or more or any combination of—
+
+(I) a fixed rate, price, or amount, or
+
+(II) a variable rate, price, or amount,
+
+which is based on any current, objectively determinable financial or economic information with respect to commodities which is not within the control of any of the parties to the contract or instrument and is not unique to any of the parties’ circumstances.
+
+(2) Hedging transaction (A) In general For purposes of this section, the term “hedging transaction” means any transaction entered into by the taxpayer in the normal course of the taxpayer’s trade or business primarily—
+
+(i) to manage risk of price changes or currency fluctuations with respect to ordinary property which is held or to be held by the taxpayer,
+
+(ii) to manage risk of interest rate or price changes or currency fluctuations with respect to borrowings made or to be made, or ordinary obligations incurred or to be incurred, by the taxpayer, or
+
+(iii) to manage such other risks as the Secretary may prescribe in regulations.
+
+(B) Treatment of nonidentification or improper identification of hedging transactions Notwithstanding subsection (a)(7), the Secretary shall prescribe regulations to properly characterize any income, gain, expense, or loss arising from a transaction—
+
+(i) which is a hedging transaction but which was not identified as such in accordance with subsection (a)(7), or
+
+(ii) which was so identified but is not a hedging transaction.
+
+(3) Sale or exchange of self-created musical works At the election of the taxpayer, paragraphs (1) and (3) of subsection (a) shall not apply to musical compositions or copyrights in musical works sold or exchanged by a taxpayer described in subsection (a)(3).
+
+(4) Regulations The Secretary shall prescribe such regulations as are appropriate to carry out the purposes of paragraph (6) and (7) of subsection (a) in the case of transactions involving related parties.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 321; Pub. L. 91–172, title V, § 514(a), Dec. 30, 1969, 83 Stat. 643; Pub. L. 94–455, title XIX, § 1901(c)(9), title XXI, § 2132(a), Oct. 4, 1976, 90 Stat. 1803, 1925; Pub. L. 97–34, title V, § 505(a), Aug. 13, 1981, 95 Stat. 331; Pub. L. 106–170, title V, § 532(a), Dec. 17, 1999, 113 Stat. 1928; Pub. L. 107–16, title V, § 542(e)(2)(A), June 7, 2001, 115 Stat. 85; Pub. L. 107–147, title IV, § 417(20), Mar. 9, 2002, 116 Stat. 57; Pub. L. 109–222, title II, § 204(a), May 17, 2006, 120 Stat. 350; Pub. L. 109–432, div. A, title IV, § 412(a), Dec. 20, 2006, 120 Stat. 2963; Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300; Pub. L. 115–97, title I, § 13314(a), Dec. 22, 2017, 131 Stat. 2133.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2017—Subsec. (a)(3). Pub. L. 115–97 inserted “a patent, invention, model or design (whether or not patented), a secret formula or process,” before “a copyright” in introductory provisions. 2010—Subsec. (a)(3)(C). Pub. L. 111–312 amended subsec. (a)(3)(C) to read as if amendment by Pub. L. 107–16, § 542(e)(2)(A), had never been enacted. See 2001 Amendment note below. 2006—Subsec. (b)(3). Pub. L. 109–432 struck out “before January 1, 2011,” after “exchanged”. Pub. L. 109–222 added par. (3). Former par. (3) redesignated (4). Subsec. (b)(4). Pub. L. 109–222 redesignated par. (3) as (4). 2002—Subsec. (b)(1)(B)(i). Pub. L. 107–147 substituted “1256(b)))” for “1256(b))”. 2001—Subsec. (a)(3)(C). Pub. L. 107–16, § 542(e)(2)(A), inserted “(other than by reason of section 1022)” after “is determined”. 1999—Pub. L. 106–170 designated existing provisions as subsec. (a), inserted heading, and added pars. (6) to (8) and subsec. (b). 1981—Pars. (5), (6). Pub. L. 97–34 redesignated par. (6) as (5) and struck out former par. (5), which excluded from definition of “capital asset” an obligation of the United States or any of its possessions, or of a State or any political subdivision thereof, or of the District of Columbia, issued on or after March 1, 1941, on a discount basis and payable without interest at a fixed maturity date not exceeding one year from the date of issue, and is covered by section 1232(a)(4)(B) of this title. 1976—Par. (5). Pub. L. 94–455, § 1901(c)(9), struck out “or Territory,” after “State”. Par. (6). Pub. L. 94–455, § 2132(a), added par. (6). 1969—Par. (3). Pub. L. 91–172 inserted reference to a letter or memorandum, added subpar. (B) dealing with a letter or memorandum, and redesignated former subpar. (B) as (C).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2017 AmendmentPub. L. 115–97, title I, § 13314(c), Dec. 22, 2017, 131 Stat. 2133, provided that: “The amendments made by this section [amending this section and section 1231 of this title] shall apply to dispositions after December 31, 2017.”
+
+Effective Date of 2010 AmendmentAmendment by Pub. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Pub. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.
+
+Effective Date of 2006 AmendmentPub. L. 109–432, div. A, title IV, § 412(b), Dec. 20, 2006, 120 Stat. 2963, provided that: “The amendment made by this section [amending this section] shall take effect as if included in section 204 of the Tax Increase Prevention and Reconciliation Act of 2005 [Pub. L. 109–222].” Amendment by Pub. L. 109–222 applicable to sales and exchanges in taxable years beginning after May 17, 2006, see section 204(c) of Pub. L. 109–222, set out as a note under section 170 of this title.
+
+Effective Date of 2001 AmendmentAmendment by Pub. L. 107–16 applicable to estates of decedents dying after Dec. 31, 2009, see section 542(f)(1) of Pub. L. 107–16, set out as a note under section 121 of this title.
+
+Effective Date of 1999 AmendmentAmendment by Pub. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Pub. L. 106–170, set out as a note under section 170 of this title.
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Pub. L. 97–34, set out as an Effective Date note under section 1092 of this title.
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XXI, § 2132(b), Oct. 4, 1976, 90 Stat. 1925, provided that: “The amendment made by subsection (a) [amending this section] shall apply to sales, exchanges, and contributions made after the date of enactment of this Act [Oct. 4, 1976].”
+
+Effective Date of 1969 AmendmentPub. L. 91–172, title V, § 514(c), Dec. 30, 1969, 83 Stat. 643, provided that: “The amendments made by this section [amending this section and sections 341 and 1231 of this title] shall apply to sales and other dispositions occurring after July 25, 1969.”

legal/us/code/title-26/chapter-1/section-1222.md

@@ -0,0 +1,77 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1222"
+description: "Other terms relating to capital gains and losses"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1222"
+citation: "26 U.S.C. § 1222"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1222"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "bad9b1d9c2d50ba8577c7801d812a3d192f42438a78909831db5e5bb17826fde"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "77e0dd197e50acafe9ed35610a84d362e91c726bf1509447388b9fce1cd7be20"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1222 - Other terms relating to capital gains and losses
+
+## Text
+
+For purposes of this subtitle—
+
+(1) Short-term capital gain The term “short-term capital gain” means gain from the sale or exchange of a capital asset held for not more than 1 year, if and to the extent such gain is taken into account in computing gross income.
+
+(2) Short-term capital loss The term “short-term capital loss” means loss from the sale or exchange of a capital asset held for not more than 1 year, if and to the extent that such loss is taken into account in computing taxable income.
+
+(3) Long-term capital gain The term “long-term capital gain” means gain from the sale or exchange of a capital asset held for more than 1 year, if and to the extent such gain is taken into account in computing gross income.
+
+(4) Long-term capital loss The term “long-term capital loss” means loss from the sale or exchange of a capital asset held for more than 1 year, if and to the extent that such loss is taken into account in computing taxable income.
+
+(5) Net short-term capital gain The term “net short-term capital gain” means the excess of short-term capital gains for the taxable year over the short-term capital losses for such year.
+
+(6) Net short-term capital loss The term “net short-term capital loss” means the excess of short-term capital losses for the taxable year over the short-term capital gains for such year.
+
+(7) Net long-term capital gain The term “net long-term capital gain” means the excess of long-term capital gains for the taxable year over the long-term capital losses for such year.
+
+(8) Net long-term capital loss The term “net long-term capital loss” means the excess of long-term capital losses for the taxable year over the long-term capital gains for such year.
+
+(9) Capital gain net income The term “capital gain net income” means the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges.
+
+(10) Net capital loss The term “net capital loss” means the excess of the losses from sales or exchanges of capital assets over the sum allowed under section 1211. In the case of a corporation, for the purpose of determining losses under this paragraph, amounts which are short-term capital losses under section 1212(a)(1) shall be excluded.
+
+(11) Net capital gain The term “net capital gain” means the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such year.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 322; Pub. L. 88–272, title II, § 230(b), Feb. 26, 1964, 78 Stat. 100; Pub. L. 91–172, title V, §§ 511(a), 513(c), Dec. 30, 1969, 83 Stat. 635, 643; Pub. L. 94–455, title XIV, § 1402(a)(1), (2), (d), title XIX, § 1901(a)(136), Oct. 4, 1976, 90 Stat. 1731, 1733, 1787; Pub. L. 98–369, div. A, title X, § 1001(a), (e), July 18, 1984, 98 Stat. 1011, 1012; Pub. L. 111–325, title I, § 101(b)(2), Dec. 22, 2010, 124 Stat. 3538; Pub. L. 113–295, div. A, title II, § 221(a)(79), Dec. 19, 2014, 128 Stat. 4049.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2014—Pub. L. 113–295 struck out concluding provisions which read as follows: “For purposes of this subtitle, in the case of futures transactions in any commodity subject to the rules of a board of trade or commodity exchange, the length of the holding period taken into account under this section or under any other section amended by section 1402 of the Tax Reform Act of 1976 shall be determined without regard to the amendments made by subsections (a) and (b) of such section 1402.” 2010—Par. (10). Pub. L. 111–325 substituted “section 1212(a)(1)” for “section 1212”. 1984—Pars. (1) to (4). Pub. L. 98–369 substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. 1976—Pars. (1) to (4). Pub. L. 94–455, § 1402(a)(2), provided that “9 months” would be changed to “1 year”. Pub. L. 94–455, § 1402(a)(1), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977. Par. (9). Pub. L. 94–455, § 1901(a)(136)(A), substituted “Capital gain net income” and “capital gain net income” for “Net capital gain” and “net capital gain” in heading and text. Par. (11). Pub. L. 94–455, § 1901(a)(136)(B), substituted “Net capital gain” and “net capital gain” for “Net section 1201 gain” and “net section 1201 gain” in heading and text. Pub. L. 94–455, § 1402(d), inserted sentence at end relating to length of holding period in case of futures transactions in commodities. 1969—Par. (9). Pub. L. 91–172, § 513(c), substituted “The” for “In the case of a corporation, the”. Par. (11). Pub. L. 91–172, § 511(a), added par. (11). 1964—Pars. (9), (10). Pub. L. 88–272 struck out provisions from par. (9) relating to taxpayers other than corporations, and inserted “In the case of a corporation” in par. (10).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 2010 AmendmentExcept as otherwise provided, amendment by Pub. L. 111–325 applicable to net capital losses for taxable years beginning after Dec. 22, 2010, see section 101(c) of Pub. L. 111–325, set out as a note under section 1212 of this title.
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XIV, § 1402(a)(1), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning in 1977. Pub. L. 94–455, title XIV, § 1402(a)(2), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977. Amendment by section 1901(a)(136) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective Date of 1969 AmendmentAmendment by section 511(a) of Pub. L. 91–172 applicable with respect to taxable years beginning after Dec. 31, 1969, see section 511(d) of Pub. L. 91–172, set out as an Effective Date note under section 852 of this title. Amendment by section 513(c) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 513(d) of Pub. L. 91–172, set out as a note under section 1211 of this title.
+
+Effective Date of 1964 AmendmentAmendment by Pub. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 230(c) of Pub. L. 88–272, set out as a note under section 1212 of this title.

legal/us/code/title-26/chapter-1/section-123.md

@@ -0,0 +1,51 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 123"
+description: "Amounts received under insurance contracts for certain living expenses"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "123"
+citation: "26 U.S.C. § 123"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s123"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "2c6a77b68d038d29c0fd0603c2cfbe9458965bddb5a3ef1c0a87bccf4496937f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "768061d5f22e12f35de013988e2cc8e3232ed5a1032f3aab035f9b8e324cc442"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 123 - Amounts received under insurance contracts for certain living expenses
+
+## Text
+
+(a) General rule In the case of an individual whose principal residence is damaged or destroyed by fire, storm, or other casualty, or who is denied access to his principal residence by governmental authorities because of the occurrence or threat of occurrence of such a casualty, gross income does not include amounts received by such individual under an insurance contract which are paid to compensate or reimburse such individual for living expenses incurred for himself and members of his household resulting from the loss of use or occupancy of such residence.
+
+(b) Limitation Subsection (a) shall apply to amounts received by the taxpayer for living expenses incurred during any period only to the extent the amounts received do not exceed the amount by which—
+
+(1) the actual living expenses incurred during such period for himself and members of his household resulting from the loss of use or occupancy of their residence, exceed
+
+(2) the normal living expenses which would have been incurred for himself and members of his household during such period.
+
+(Added Pub. L. 91–172, title IX, § 901(a), Dec. 30, 1969, 83 Stat. 709.)
+
+## Notes
+
+Editorial Notes
+
+Prior ProvisionsA prior section 123 was renumbered section 140 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective DatePub. L. 91–172, title IX, § 901(c), Dec. 30, 1969, 83 Stat. 709, provided that: “The amendments made by this section [enacting this section] shall apply with respect to amounts received on or after January 1, 1969.”

legal/us/code/title-26/chapter-1/section-1231.md

@@ -0,0 +1,161 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1231"
+description: "Property used in the trade or business and involuntary conversions"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1231"
+citation: "26 U.S.C. § 1231"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1231"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "09b744644d0a06bc5288409b8d1daeca0126baba6e011a013a4ee10ad5d9c656"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "5bbb5df54a7b15e0f4e759cad9768a97f9d79a7d6fe1cb39647319d972dca236"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1231 - Property used in the trade or business and involuntary conversions
+
+## Text
+
+(a) General rule (1) Gains exceed losses If—
+
+(A) the section 1231 gains for any taxable year, exceed
+
+(B) the section 1231 losses for such taxable year,
+
+such gains and losses shall be treated as long-term capital gains or long-term capital losses, as the case may be.
+
+(2) Gains do not exceed losses If—
+
+(A) the section 1231 gains for any taxable year, do not exceed
+
+(B) the section 1231 losses for such taxable year,
+
+such gains and losses shall not be treated as gains and losses from sales or exchanges of capital assets.
+
+(3) Section 1231 gains and losses For purposes of this subsection—
+
+(A) Section 1231 gain The term “section 1231 gain” means—
+
+(i) any recognized gain on the sale or exchange of property used in the trade or business, and
+
+(ii) any recognized gain from the compulsory or involuntary conversion (as a result of destruction in whole or in part, theft or seizure, or an exercise of the power of requisition or condemnation or the threat or imminence thereof) into other property or money of—
+
+(I) property used in the trade or business, or
+
+(II) any capital asset which is held for more than 1 year and is held in connection with a trade or business or a transaction entered into for profit.
+
+(B) Section 1231 loss The term “section 1231 loss” means any recognized loss from a sale or exchange or conversion described in subparagraph (A).
+
+(4) Special rules For purposes of this subsection—
+
+(A) In determining under this subsection whether gains exceed losses—
+
+(i) the section 1231 gains shall be included only if and to the extent taken into account in computing gross income, and
+
+(ii) the section 1231 losses shall be included only if and to the extent taken into account in computing taxable income, except that section 1211 shall not apply.
+
+(B) Losses (including losses not compensated for by insurance or otherwise) on the destruction, in whole or in part, theft or seizure, or requisition or condemnation of—
+
+(i) property used in the trade or business, or
+
+(ii) capital assets which are held for more than 1 year and are held in connection with a trade or business or a transaction entered into for profit,
+
+shall be treated as losses from a compulsory or involuntary conversion.
+
+(C) In the case of any involuntary conversion (subject to the provisions of this subsection but for this sentence) arising from fire, storm, shipwreck, or other casualty, or from theft, of any—
+
+(i) property used in the trade or business, or
+
+(ii) any capital asset which is held for more than 1 year and is held in connection with a trade or business or a transaction entered into for profit,
+
+this subsection shall not apply to such conversion (whether resulting in gain or loss) if during the taxable year the recognized losses from such conversions exceed the recognized gains from such conversions.
+
+(b) Definition of property used in the trade or business For purposes of this section—
+
+(1) General rule The term “property used in the trade or business” means property used in the trade or business, of a character which is subject to the allowance for depreciation provided in section 167, held for more than 1 year, and real property used in the trade or business, held for more than 1 year, which is not—
+
+(A) property of a kind which would properly be includible in the inventory of the taxpayer if on hand at the close of the taxable year,
+
+(B) property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business,
+
+(C) a patent, invention, model or design (whether or not patented), a secret formula or process, a copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property, held by a taxpayer described in paragraph (3) of section 1221(a), or
+
+(D) a publication of the United States Government (including the Congressional Record) which is received from the United States Government, or any agency thereof, other than by purchase at the price at which it is offered for sale to the public, and which is held by a taxpayer described in paragraph (5) of section 1221(a).
+
+(2) Timber, coal, or domestic iron ore Such term includes timber, coal, and iron ore with respect to which section 631 applies.
+
+(3) Livestock Such term includes—
+
+(A) cattle and horses, regardless of age, held by the taxpayer for draft, breeding, dairy, or sporting purposes, and held by him for 24 months or more from the date of acquisition, and
+
+(B) other livestock, regardless of age, held by the taxpayer for draft, breeding, dairy, or sporting purposes, and held by him for 12 months or more from the date of acquisition.
+
+Such term does not include poultry.
+
+(4) Unharvested crop In the case of an unharvested crop on land used in the trade or business and held for more than 1 year, if the crop and the land are sold or exchanged (or compulsorily or involuntarily converted) at the same time and to the same person, the crop shall be considered as “property used in the trade or business.”
+
+(c) Recapture of net ordinary losses (1) In general The net section 1231 gain for any taxable year shall be treated as ordinary income to the extent such gain does not exceed the non-recaptured net section 1231 losses.
+
+(2) Non-recaptured net section 1231 losses For purposes of this subsection, the term “non-recaptured net section 1231 losses” means the excess of—
+
+(A) the aggregate amount of the net section 1231 losses for the 5 most recent preceding taxable years, over
+
+(B) the portion of such losses taken into account under paragraph (1) for such preceding taxable years.
+
+(3) Net section 1231 gain For purposes of this subsection, the term “net section 1231 gain” means the excess of—
+
+(A) the section 1231 gains, over
+
+(B) the section 1231 losses.
+
+(4) Net section 1231 loss For purposes of this subsection, the term “net section 1231 loss” means the excess of—
+
+(A) the section 1231 losses, over
+
+(B) the section 1231 gains.
+
+(5) Special rules For purposes of determining the amount of the net section 1231 gain or loss for any taxable year, the rules of paragraph (4) of subsection (a) shall apply.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 325; Pub. L. 85–866, title I, § 49(a), Sept. 2, 1958, 72 Stat. 1642; Pub. L. 88–272, title II, § 227(a)(2), Feb. 26, 1964, 78 Stat. 97; Pub. L. 91–172, title II, § 212(b)(1), title V, §§ 514(b)(2), 516(b), Dec. 30, 1969, 83 Stat. 571, 643, 646; Pub. L. 94–455, title XIV, § 1402(b)(1)(R), (2), Oct. 4, 1976, 90 Stat. 1732; Pub. L. 95–600, title VII, § 701(ee)(1), Nov. 6, 1978, 92 Stat. 2924; Pub. L. 97–34, title V, § 505(c)(1), Aug. 13, 1981, 95 Stat. 332; Pub. L. 98–369, div. A, title I, § 176(a), title VII, § 711(c)(2)(A)(iii), title X, § 1001(b)(15), (e), July 18, 1984, 98 Stat. 709, 944, 1012; Pub. L. 106–170, title V, § 532(c)(1)(G), Dec. 17, 1999, 113 Stat. 1930; Pub. L. 113–295, div. A, title II, § 221(a)(81), Dec. 19, 2014, 128 Stat. 4049; Pub. L. 115–97, title I, § 13314(b), Dec. 22, 2017, 131 Stat. 2133.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2017—Subsec. (b)(1)(C). Pub. L. 115–97 inserted “a patent, invention, model or design (whether or not patented), a secret formula or process,” before “a copyright”. 2014—Subsec. (c)(2)(A). Pub. L. 113–295 struck out “beginning after December 31, 1981” after “years”. 1999—Subsec. (b)(1)(C), (D). Pub. L. 106–170 substituted “section 1221(a)” for “section 1221”. 1984—Subsec. (a). Pub. L. 98–369, § 1001(b)(15), (e), substituted “6 months” for “1 year” wherever appearing, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. Pub. L. 98–369, § 711(c)(2)(A)(iii), amended subsec. (a) generally, substituting pars. (1) to (4), for “If, during the taxable year, the recognized gains on sales or exchanges of property used in the trade or business, plus the recognized gains from the compulsory or involuntary conversion (as a result of destruction in whole or in part, theft or seizure, or an exercise of the power of requisition or condemnation or the threat or imminence thereof) of property used in the trade or business and capital assets held for more than 1 year into other property or money, exceed the recognized losses from such sales, exchanges, and conversions, such gains and losses shall be considered as gains and losses from sales or exchanges of capital assets held for more than 1 year. If such gains do not exceed such losses, such gains and losses shall not be considered as gains and losses from sales or exchanges of capital assets. For purposes of this subsection— “(1) in determining under this subsection whether gains exceed losses, the gains described therein shall be included only if and to the extent taken into account in computing gross income and the losses described therein shall be included only if and to the extent taken into account in computing taxable income, except that section 1211 shall not apply; and “(2) losses (including losses not compensated for by insurance or otherwise) upon the destruction, in whole or in part, theft or seizure, or requisition or condemnation of (A) property used in the trade or business or (B) capital assets held for more than 1 year shall be considered losses from a compulsory or involuntary conversion. In the case of any involuntary conversion (subject to the provisions of this subsection but for this sentence) arising from fire, storm, shipwreck, or other casualty, or from theft, of any property used in the trade or business or of any capital asset held for more than 1 year, this subsection shall not apply to such conversion (whether resulting in gain or loss) if during the taxable year the recognized losses from such conversions exceed the recognized gains from such conversions.” Subsec. (b)(1), (4). Pub. L. 98–369, § 1001(b)(15), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. Subsec. (c). Pub. L. 98–369, § 176(a), added subsec. (c). 1981—Subsec. (b)(1)(D). Pub. L. 97–34 substituted “paragraph (5)” for “paragraph (6)”. 1978—Subsec. (b)(1)(D). Pub. L. 95–600 added subpar. (D). 1976—Subsecs. (a), (b)(1), (4). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year” wherever appearing. Pub. L. 94–455, § 1402(b)(1)(R), provided that in subsecs. (a), first and last sentences, (a)(2), and (b)(1), (4), “6 months” would be changed to “9 months” for taxable years beginning in 1977. 1969—Subsec. (a). Pub. L. 91–172, § 516(b), provided that casualty (or theft) losses with respect to depreciable property and real estate used in trade or business and capital assets held for the production of income as well as personal assets are to be consolidated with casualty (or theft) gains with respect to this type of property and if the casualty losses exceed the casualty gains, the net loss is treated as an ordinary loss without regard to whether there may be noncasualty gains under this section, but, if the casualty gains exceed the casualty losses, the net gain is treated as a gain under this section and must be consolidated with other gains and losses under this section. Subsec. (b)(1)(C). Pub. L. 91–172, § 514(b)(2), inserted reference to a letter or memorandum. Subsec. (b)(3). Pub. L. 91–172, § 212(b)(1), redesignated existing provisions as subpar. (B) and added subpar. (A). 1964—Subsec. (b)(2). Pub. L. 88–272 inserted reference to iron ore in text, and to domestic iron ore in heading. 1958—Subsec. (a). Pub. L. 85–866 inserted provision respecting casualty losses sustained upon certain uninsured property.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2017 AmendmentAmendment by Pub. L. 115–97 applicable to dispositions after Dec. 31, 2017, see section 13314(c) of Pub. L. 115–97, set out as a note under section 1221 of this title.
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 1999 AmendmentAmendment by Pub. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Pub. L. 106–170, set out as a note under section 170 of this title.
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 176(b), July 18, 1984, 98 Stat. 709, provided that: “The amendment made by subsection (a) [amending this section] shall apply to net section 1231 gains for taxable years beginning after December 31, 1984.” Amendment by section 711(c)(2)(A)(iii) of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 711(c)(2)(A)(v) of Pub. L. 98–369, set out as a note under section 165 of this title. Amendment by section 1001(b)(15) of Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Pub. L. 97–34, set out as an Effective Date note under section 1092 of this title.
+
+Effective Date of 1978 AmendmentPub. L. 95–600, title VII, § 701(ee)(2), Nov. 6, 1978, 92 Stat. 2924, provided that: “The amendment made by paragraph (1) [amending this section] shall apply with respect to sales, exchanges, and contributions made after October 4, 1976.”
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XIV, § 1402(b)(1), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning in 1977. Pub. L. 94–455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977.
+
+Effective Date of 1969 AmendmentPub. L. 91–172, title II, § 212(b)(2), Dec. 30, 1969, 83 Stat. 571, provided that: “The amendments made by paragraph (1) [amending this section] shall apply to livestock acquired after December 31, 1969.” Amendment by section 514(b)(2) of Pub. L. 91–172 applicable to sales and other dispositions occurring after July 25, 1969, see section 514(c) of Pub. L. 91–172, set out as a note under section 1221 of this title. Amendment by section 516(b) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 516(d)(2) of Pub. L. 91–172, set out as a note under section 1001 of this title.
+
+Effective Date of 1964 AmendmentAmendment by Pub. L. 88–272 applicable with respect to amounts received or accrued in taxable years beginning after Dec. 31, 1963, attributable to iron ore mined in such years, see section 227(c) of Pub. L. 88–272, set out as a note under section 272 of this title.
+
+Effective Date of 1958 AmendmentPub. L. 85–866, title I, § 49(b), Sept. 2, 1958, 72 Stat. 1642, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1957.”

legal/us/code/title-26/chapter-1/section-1232-to-1232b.md

@@ -0,0 +1,41 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1232 to 1232B"
+description: "Repealed. Pub. L. 98–369, div. A, title I, § 42(a)(1), July 18, 1984, 98 Stat. 556]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1232 to 1232B"
+citation: "26 U.S.C. § 1232 to 1232B"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1232...1232B"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "56773adb206bad8607a7ae9a895adf8e2846e44a91c7a22262c61da7ffae8322"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "bbe8502bd681f97404010c4e8e9d9ad580dd699c10944897c4a656dcad6e4ffa"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1232 to 1232B - Repealed. Pub. L. 98–369, div. A, title I, § 42(a)(1), July 18, 1984, 98 Stat. 556]
+
+## Notes
+
+Section 1232, acts Aug. 16, 1954, ch. 736, 68A Stat. 326; Sept. 2, 1958, Pub. L. 85–866, title I, §§ 50(a), 51, 72 Stat. 1642, 1643; June 25, 1959, Pub. L. 86–69, § 3(e), 73 Stat. 140; Sept. 2, 1964, Pub. L. 88–563, § 5, 78 Stat. 845; Dec. 30, 1969, Pub. L. 91–172, title IV, § 413(a), (b), 83 Stat. 609, 611; Oct. 4, 1976, Pub. L. 94–455, title XIV, § 1402(b)(1)(S), (2), title XIX, §§ 1901(b)(3)(I), (14)(D), 1904(b)(10)(C), 90 Stat. 1732, 1793, 1796, 1817; Aug. 13, 1981, Pub. L. 97–34, title V, § 505(b), 95 Stat. 331; Sept. 3, 1982, Pub. L. 97–248, title II, §§ 231(c), 232(b), title III, § 310(b)(6), 96 Stat. 499, 501, 599; Jan. 12, 1983, Pub. L. 97–448, title III, § 306(a)(9)(B), (C)(i), (ii), 96 Stat. 2403, 2404; July 18, 1984, Pub. L. 98–369, div. A, title X, § 1001(b)(16), (d), (e), 98 Stat. 1012, related to bonds and other evidences of indebtedness. See section 1271 et seq. of this title.
+
+Section 1232A, added Pub. L. 97–248, title II, § 231(a), Sept. 3, 1982, 96 Stat. 496; amended Pub. L. 98–369, div. A, title II, § 211(b)(17), July 18, 1984, 98 Stat. 756, related to original issue discount. See section 1271 et seq. of this title.
+
+Section 1232B, added Pub. L. 97–248, title II, § 232(a), Sept. 3, 1982, 96 Stat. 499, related to stripped bonds. See section 1286 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable to taxable years ending after July 18, 1984, see section 44 of Pub. L. 98–369, set out as an Effective Date note under section 1271 of this title.

legal/us/code/title-26/chapter-1/section-1233.md

@@ -0,0 +1,129 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1233"
+description: "Gains and losses from short sales"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1233"
+citation: "26 U.S.C. § 1233"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1233"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "55440c5ba4a3290acff16b7a4383b0eaa5291c555a6cab184161f00569fe85c9"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "dacd1d3721c6e78ed7a43c8e4caed3fe8c01cef4683f39547f34e9236d6af12d"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1233 - Gains and losses from short sales
+
+## Text
+
+(a) Capital assets For purposes of this subtitle, gain or loss from the short sale of property shall be considered as gain or loss from the sale or exchange of a capital asset to the extent that the property, including a commodity future, used to close the short sale constitutes a capital asset in the hands of the taxpayer.
+
+(b) Short-term gains and holding periods If gain or loss from a short sale is considered as gain or loss from the sale or exchange of a capital asset under subsection (a) and if on the date of such short sale substantially identical property has been held by the taxpayer for not more than 1 year (determined without regard to the effect, under paragraph (2) of this subsection, of such short sale on the holding period), or if substantially identical property is acquired by the taxpayer after such short sale and on or before the date of the closing thereof—
+
+(1) any gain on the closing of such short sale shall be considered as a gain on the sale or exchange of a capital asset held for not more than 1 year (notwithstanding the period of time any property used to close such short sale has been held); and
+
+(2) the holding period of such substantially identical property shall be considered to begin (notwithstanding section 1223, relating to the holding period of property) on the date of the closing of the short sale, or on the date of a sale, gift, or other disposition of such property, whichever date occurs first. This paragraph shall apply to such substantially identical property in the order of the dates of the acquisition of such property, but only to so much of such property as does not exceed the quantity sold short.
+
+For purposes of this subsection, the acquisition of an option to sell property at a fixed price shall be considered as a short sale, and the exercise or failure to exercise such option shall be considered as a closing of such short sale.
+
+(c) Certain options to sell Subsection (b) shall not include an option to sell property at a fixed price acquired on the same day on which the property identified as intended to be used in exercising such option is acquired and which, if exercised, is exercised through the sale of the property so identified. If the option is not exercised, the cost of the option shall be added to the basis of the property with which the option is identified. This subsection shall apply only to options acquired after August 16, 1954.
+
+(d) Long-term losses If on the date of such short sale substantially identical property has been held by the taxpayer for more than 1 year, any loss on the closing of such short sale shall be considered as a loss on the sale or exchange of a capital asset held for more than 1 year (notwithstanding the period of time any property used to close such short sale has been held, and notwithstanding section 1234).
+
+(e) Rules for application of section (1) Subsection (b)(1) or (d) shall not apply to the gain or loss, respectively, on any quantity of property used to close such short sale which is in excess of the quantity of the substantially identical property referred to in the applicable subsection.
+
+(2) For purposes of subsections (b) and (d)—
+
+(A) the term “property” includes only stocks and securities (including stocks and securities dealt with on a “when issued” basis), and commodity futures, which are capital assets in the hands of the taxpayer, but does not include any position to which section 1092(b) applies;
+
+(B) in the case of futures transactions in any commodity on or subject to the rules of a board of trade or commodity exchange, a commodity future requiring delivery in 1 calendar month shall not be considered as property substantially identical to another commodity future requiring delivery in a different calendar month;
+
+(C) in the case of a short sale of property by an individual, the term “taxpayer”, in the application of this subsection and subsections (b) and (d), shall be read as “taxpayer or his spouse”; but an individual who is legally separated from the taxpayer under a decree of divorce or of separate maintenance shall not be considered as the spouse of the taxpayer;
+
+(D) a securities futures contract (as defined in section 1234B) to acquire substantially identical property shall be treated as substantially identical property; and
+
+(E) entering into a securities futures contract (as so defined) to sell shall be considered to be a short sale, and the settlement of such contract shall be considered to be the closing of such short sale.
+
+(3) Where the taxpayer enters into 2 commodity futures transactions on the same day, one requiring delivery by him in one market and the other requiring delivery to him of the same (or substantially identical) commodity in the same calendar month in a different market, and the taxpayer subsequently closes both such transactions on the same day, subsections (b) and (d) shall have no application to so much of the commodity involved in either such transaction as does not exceed in quantity the commodity involved in the other.
+
+(4) (A) In the case of a taxpayer who is a dealer in securities (within the meaning of section 1236)—
+
+(i) if, on the date of a short sale of stock, substantially identical property which is a capital asset in the hands of the taxpayer has been held for not more than 1 year, and
+
+(ii) if such short sale is closed more than 20 days after the date on which it was made,
+
+subsection (b)(2) shall apply in respect of the holding period of such substantially identical property.
+
+(B) For purposes of subparagraph (A)—
+
+(i) the last sentence of subsection (b) applies; and
+
+(ii) the term “stock” means any share or certificate of stock in a corporation, any bond or other evidence of indebtedness which is convertible into any such share or certificate, or any evidence of an interest in, or right to subscribe to or purchase, any of the foregoing.
+
+(f) Arbitrage operations in securities In the case of a short sale which had been entered into as an arbitrage operation, to which sale the rule of subsection (b)(2) would apply except as otherwise provided in this subsection—
+
+(1) subsection (b)(2) shall apply first to substantially identical assets acquired for arbitrage operations held at the close of business on the day such sale is made, and only to the extent that the quantity sold short exceeds the substantially identical assets acquired for arbitrage operations held at the close of business on the day such sale is made, shall the holding period of any other such identical assets held by the taxpayer be affected;
+
+(2) in the event that assets acquired for arbitrage operations are disposed of in such manner as to create a net short position in assets acquired for arbitrage operations, such net short position shall be deemed to constitute a short sale made on that day;
+
+(3) for the purpose of paragraphs (1) and (2) of this subsection the taxpayer will be deemed as of the close of any business day to hold property which he is or will be entitled to receive or acquire by virtue of any other asset acquired for arbitrage operations or by virtue of any contract he has entered into in an arbitrage operation; and
+
+(4) for the purpose of this subsection arbitrage operations are transactions involving the purchase and sale of assets for the purpose of profiting from a current difference between the price of the asset purchased and the price of the asset sold, and in which the asset purchased, if not identical to the asset sold, is such that by virtue thereof the taxpayer is, or will be, entitled to acquire assets identical to the assets sold. Such operations must be clearly identified by the taxpayer in his records as arbitrage operations on the day of the transaction or as soon thereafter as may be practicable. Assets acquired for arbitrage operations will include stocks and securities and the right to acquire stocks and securities.
+
+(g) Hedging transactions This section shall not apply in the case of a hedging transaction in commodity futures.
+
+(h) Short sales of property which becomes substantially worthless (1) In general If—
+
+(A) the taxpayer enters into a short sale of property, and
+
+(B) such property becomes substantially worthless,
+
+the taxpayer shall recognize gain in the same manner as if the short sale were closed when the property becomes substantially worthless. To the extent provided in regulations prescribed by the Secretary, the preceding sentence also shall apply with respect to any option with respect to property, any offsetting notional principal contract with respect to property, any futures or forward contract to deliver any property, and any other similar transaction.
+
+(2) Statute of limitations If property becomes substantially worthless during a taxable year and any short sale of such property remains open at the time such property becomes substantially worthless, then—
+
+(A) the statutory period for the assessment of any deficiency attributable to any part of the gain on such transaction shall not expire before the earlier of—
+
+(i) the date which is 3 years after the date the Secretary is notified by the taxpayer (in such manner as the Secretary may by regulations prescribe) of the substantial worthlessness of such property, or
+
+(ii) the date which is 6 years after the date the return for such taxable year is filed, and
+
+(B) such deficiency may be assessed before the date applicable under subparagraph (A) notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 327; Aug. 12, 1955, ch. 871, § 1, 69 Stat. 717; Pub. L. 85–866, title I, § 52(a), (b), Sept. 2, 1958, 72 Stat. 1643, 1644; Pub. L. 94–455, title XIV, § 1402(b)(1)(T), (2), title XIX, § 1901(a)(137), Oct. 4, 1976, 90 Stat. 1732, 1787; Pub. L. 97–34, title V, § 501(c), Aug. 13, 1981, 95 Stat. 326; Pub. L. 98–369, div. A, title X, § 1001(b)(17), (e), July 18, 1984, 98 Stat. 1012; Pub. L. 105–34, title X, § 1003(b)(1), Aug. 5, 1997, 111 Stat. 910; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(f)], Dec. 21, 2000, 114 Stat. 2763, 2763A–649; Pub. L. 107–147, title IV, § 412(d)(3)(A), Mar. 9, 2002, 116 Stat. 54.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2002—Subsec. (e)(2)(E). Pub. L. 107–147 added subpar. (E). 2000—Subsec. (e)(2)(D). Pub. L. 106–554 added subpar. (D). 1997—Subsec. (h). Pub. L. 105–34 added subsec. (h). 1984—Subsecs. (b), (d), (e)(4)(A)(i). Pub. L. 98–369 substituted “6 months” for “1 year” wherever appearing, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. 1981—Subsec. (e)(2)(A). Pub. L. 97–34 inserted “, but does not include any position to which section 1092(b) applies” after “taxpayer”. 1976—Subsec. (b). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”. Pub. L. 94–455, § 1402(b)(1)(T), (2), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977. Subsec. (c). Pub. L. 94–455, § 1901(a)(137), substituted “August 16, 1954” for “the date of enactment of this title”. Subsecs. (d), (e)(4)(A)(i). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”. Pub. L. 94–455, § 1402(b)(1)(T), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977. 1958—Subsec. (a). Pub. L. 85–866, § 52(b), struck out “, other than a hedging transaction in commodity futures,” after “sale of property”. Subsec. (e)(4). Pub. L. 85–866, § 52(a), added par. (4). Subsec. (g). Pub. L. 85–866, § 52(b), added subsec. (g). 1955—Subsec. (f). Act Aug. 12, 1955, added subsec. (f).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2002 AmendmentAmendment by Pub. L. 107–147 effective as if included in the provisions of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by Pub. L. 106–554], to which such amendment relates, see section 412(e) of Pub. L. 107–147, set out as a note under section 151 of this title.
+
+Effective Date of 1997 AmendmentPub. L. 105–34, title X, § 1003(b)(2), Aug. 5, 1997, 111 Stat. 910, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to property which becomes substantially worthless after the date of the enactment of this Act [Aug. 5, 1997].”
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Pub. L. 97–34, set out as an Effective Date note under section 1092 of this title.
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XIV, § 1402(b)(1), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning in 1977. Pub. L. 94–455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977. Amendment by section 1901(a)(137) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective Date of 1958 AmendmentAmendment by section 52(b) of Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title. Pub. L. 85–866, title I, § 52(c), Sept. 2, 1958, 72 Stat. 1644, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to short sales made after December 31, 1957.”
+
+Effective Date of 1955 AmendmentAct Aug. 12, 1955, ch. 871, § 2, 69 Stat. 718, provided that: “The amendment made by the first section of this Act [amending this section] shall apply only with respect to taxable years ending after the date of the enactment of this Act [Aug. 12, 1955] and only in the case of a short sale of property made by the taxpayer after such date.”

legal/us/code/title-26/chapter-1/section-1234.md

@@ -0,0 +1,79 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1234"
+description: "Options to buy or sell"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1234"
+citation: "26 U.S.C. § 1234"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1234"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
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+text_hash: "5d792a2460fc230a5bdd0d47caa1e621d263560acf0ddb462ca63021a179f943"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1234 - Options to buy or sell
+
+## Text
+
+(a) Treatment of gain or loss in the case of the purchaser (1) General rule Gain or loss attributable to the sale or exchange of, or loss attributable to failure to exercise, an option to buy or sell property shall be considered gain or loss from the sale or exchange of property which has the same character as the property to which the option relates has in the hands of the taxpayer (or would have in the hands of the taxpayer if acquired by him).
+
+(2) Special rule for loss attributable to failure to exercise option For purposes of paragraph (1), if loss is attributable to failure to exercise an option, the option shall be deemed to have been sold or exchanged on the day it expired.
+
+(3) Nonapplication of subsection This subsection shall not apply to—
+
+(A) an option which constitutes property described in paragraph (1) of section 1221(a);
+
+(B) in the case of gain attributable to the sale or exchange of an option, any income derived in connection with such option which, without regard to this subsection, is treated as other than gain from the sale or exchange of a capital asset; and
+
+(C) a loss attributable to failure to exercise an option described in section 1233(c).
+
+(b) Treatment of grantor of option in the case of stock, securities, or commodities (1) General rule In the case of the grantor of the option, gain or loss from any closing transaction with respect to, and gain on lapse of, an option in property shall be treated as a gain or loss from the sale or exchange of a capital asset held not more than 1 year.
+
+(2) Definitions For purposes of this subsection—
+
+(A) Closing transaction The term “closing transaction” means any termination of the taxpayer’s obligation under an option in property other than through the exercise or lapse of the option.
+
+(B) Property The term “property” means stocks and securities (including stocks and securities dealt with on a “when issued” basis), commodities, and commodity futures.
+
+(3) Nonapplication of subsection This subsection shall not apply to any option granted in the ordinary course of the taxpayer’s trade or business of granting options.
+
+(c) Treatment of options on section 1256 contracts and cash settlement options (1) Section 1256 contracts Gain or loss shall be recognized on the exercise of an option on a section 1256 contract (within the meaning of section 1256(b)).
+
+(2) Treatment of cash settlement options (A) In general For purposes of subsections (a) and (b), a cash settlement option shall be treated as an option to buy or sell property.
+
+(B) Cash settlement option For purposes of subparagraph (A), the term “cash settlement option” means any option which on exercise settles in (or could be settled in) cash or property other than the underlying property.
+
+(Aug. 16, 1954, ch. 376, 68A Stat. 329; Pub. L. 85–866, title I, § 53, Sept. 2, 1958, 72 Stat. 1644; Pub. L. 89–809, title II, § 210(a), Nov. 13, 1966, 80 Stat. 1580; Pub. L. 94–455, title XIV, § 1402(b)(1)(U), (2), title XXI, § 2136(a), Oct. 4, 1976, 90 Stat. 1732, 1929; Pub. L. 98–369, div. A, title I, § 105(a), title X, § 1001(b)(18), (e), July 18, 1984, 98 Stat. 629, 1012; Pub. L. 106–170, title V, § 532(c)(1)(H), Dec. 17, 1999, 113 Stat. 1930.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1999—Subsec. (a)(3)(A). Pub. L. 106–170 substituted “section 1221(a)” for “section 1221”. 1984—Subsec. (b)(1). Pub. L. 98–369, § 1001(b)(18), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. Subsec. (c). Pub. L. 98–369, § 105(a), added subsec. (c). 1976—Subsec. (a). Pub. L. 94–455, § 2136(a), inserted in heading “in the case of the purchaser”; designated existing provisions as par. “(1) General rule” and substituted “an option” and “the option” for “a privilege or option” and “the option or privilege”; redesignated existing subsec. (b) as par. (2) and substituted “an option” and “the option” for “a privilege or option” and “the privilege or option”; and redesignated existing subsec. (d)(1) to (3) as par. (3)(A) to (C) and substituted in heading and introductory text “Nonapplication” and “subsection” for “Non-application” and “section”, in par. (3)(A) “an option” for “a privilege or option”, in par. (3)(B) “an option”, “such option” and “subsection” for “a privilege or option”, “such privilege or option” and “section” and in par. (3)(C) substituted a period for “; or”. Subsec. (b). Pub. L. 94–455, § 2136(a), added subsec. (b), incorporating provisions of a prior subsec. (c) providing for a special rule for grantors of straddles, par. (1) relating to “gain on lapse” and reading “In the case of gain on lapse of an option granted by the taxpayer as part of a straddle, the gain shall be deemed to be gain from the sale or exchange of a capital asset held for not more than 6 months on the day that the option expired.”; par. (2) relating to “exception” and reading “This subsection shall not apply to any person who holds securities for sale to customers in the ordinary course of his trade or business.”, now covered in subsec. (b)(3); and par. (3) relating to definitions of “straddle” and “security”. Subsec. (b)(1). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”. Pub. L. 94–455, § 1402(b)(1)(U), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977. Subsec. (c). Pub. L. 94–455, § 2136(a), struck out provision respecting special rule for grantors of straddles, the paragraphs relating to: (1) gain on lapse; (2) exception, now covered in subsec. (b)(3); and (3) definitions of “straddle” and “security”, such provision now covered generally by subsec. (b) of this section. Subsec. (d). Pub. L. 94–455, § 2136(a), struck out provision respecting non-application of section, pars. (1) to (3) now covered in subsec. (a)(3)(A) to (C) of this section, and par. (4) providing for such non-application to gain attributable to the sale or exchange of a privilege or option acquired by the taxpayer before Mar. 1, 1954, if in the hands of the taxpayer such privilege or option was a capital asset. 1966—Subsecs. (c), (d). Pub. L. 89–809 added subsec. (c) and redesignated former subsec. (c) as (d). 1958—Pub. L. 85–866 amended section generally and among other changes provided in subsec. (a) that gain or loss resulting from option to buy or sell property is to be considered gain or loss arising from property which has the same character as the property underlying the option, incorporated existing provisions in subsecs. (b) and (c)(3), and inserted provisions set out in subsec. (c)(1), (2), (4).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1999 AmendmentAmendment by Pub. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Pub. L. 106–170, set out as a note under section 170 of this title.
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 105(b), July 18, 1984, 98 Stat. 629, provided that: “The amendment made by subsection (a) [amending this section] shall apply to options purchased or granted after October 31, 1983, in taxable years ending after such date.” Amendment by section 1001(b)(18) of Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XIV, § 1402(b)(1), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning in 1977. Pub. L. 94–455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977. Pub. L. 94–455, title XXI, § 2136(b), Oct. 4, 1976, 90 Stat. 1930, provided that: “The amendment made by subsection (a) [amending this section] shall apply to options granted after September 1, 1976.”
+
+Effective Date of 1966 AmendmentPub. L. 89–809, title II, § 210(b), Nov. 13, 1966, 80 Stat. 1580, provided that: “The amendments made by subsection (a) [amending this section] shall apply to straddle transactions entered into after January 25, 1965, in taxable years ending after such date.”
+
+Effective Date of 1958 AmendmentAmendment by Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.

legal/us/code/title-26/chapter-1/section-1234a.md

@@ -0,0 +1,59 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1234A"
+description: "Gains or losses from certain terminations"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1234A"
+citation: "26 U.S.C. § 1234A"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1234A"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "adfda345e7718b7dfc43c90c2060bf306d3d1f09843997abe6f6d06d303b774d"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "a230278c2c712f306e7480f8e23d7524d35ff33a46628ddc3db5753e51da9b8f"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1234A - Gains or losses from certain terminations
+
+## Text
+
+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
+
+(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,
+
+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).
+
+(Added Pub. L. 97–34, title V, § 507(a), Aug. 13, 1981, 95 Stat. 333; amended Pub. L. 97–448, title I, § 105(e), Jan. 12, 1983, 96 Stat. 2387; Pub. L. 98–369, div. A, title I, § 102(e)(4), (9), July 18, 1984, 98 Stat. 624, 625; Pub. L. 105–34, title X, § 1003(a)(1), Aug. 5, 1997, 111 Stat. 909; Pub. L. 106–554, § 1(a)(7) [title IV, § 401(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–648; Pub. L. 107–147, title IV, § 412(d)(1)(A), Mar. 9, 2002, 116 Stat. 53.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2002—Pars. (1) to (3). 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—Par. (1). 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”. Par. (3). Pub. L. 106–554, § 1(a)(7) [title IV, § 401(b)(2)–(4)], added par. (3). 1997—Par. (1). Pub. L. 105–34 substituted “property” for “personal property (as defined in section 1092(d)(1))”. 1984—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).” Par. (2). Pub. L. 98–369, § 102(e)(4), substituted “a section 1256 contract” for “a regulated futures contract”. 1983—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.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2002 AmendmentAmendment by Pub. L. 107–147 effective as if included in the provisions of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by Pub. L. 106–554], to which such amendment relates, see section 412(e) of Pub. L. 107–147, set out as a note under section 151 of this title.
+
+Effective Date of 1997 AmendmentPub. L. 105–34, title X, § 1003(a)(2), Aug. 5, 1997, 111 Stat. 910, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to terminations more than 30 days after the date of the enactment of this Act [Aug. 5, 1997].”
+
+Effective Date of 1984 AmendmentAmendment by section 102(e)(4) of Pub. L. 98–369 applicable to positions established after July 18, 1984, in taxable years ending after that date, except as otherwise provided, and amendment by section 102(e)(9) of Pub. L. 98–369, applicable as if included in the amendment made by section 507(a) of Pub. L. 97–34, as amended by section 105(e) of Pub. L. 97–448, see section 102(f), (g) of Pub. L. 98–369, set out as a note under section 1256 of this title.
+
+Effective Date of 1983 AmendmentAmendment by Pub. L. 97–448 effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, Pub. L. 97–34, to which such amendment relates, see section 109 of Pub. L. 97–448, set out as a note under section 1 of this title.
+
+Effective DateSection applicable to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Pub. L. 97–34, set out as a note under section 1092 of this title.

legal/us/code/title-26/chapter-1/section-1234b.md

@@ -0,0 +1,67 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1234B"
+description: "Gains or losses from securities futures contracts"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1234B"
+citation: "26 U.S.C. § 1234B"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1234B"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "e415154d4ccedec031d62301e564ead4230a5fc028fa4fc270e24baf7054436f"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "4fcb5ba8e3cc7629fc88486c15e0a0a5b41b0797b918ab05bd49cb9b1ab132a9"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1234B - Gains or losses from securities futures contracts
+
+## Text
+
+(a) Treatment of gain or loss (1) In general Gain or loss attributable to the sale, exchange, or termination of a securities futures contract shall be considered gain or loss from the sale or exchange of property which has the same character as the property to which the contract relates has in the hands of the taxpayer (or would have in the hands of the taxpayer if acquired by the taxpayer).
+
+(2) Nonapplication of subsection This subsection shall not apply to—
+
+(A) a contract which constitutes property described in paragraph (1) or (7) of section 1221(a), and
+
+(B) any income derived in connection with a contract which, without regard to this subsection, is treated as other than gain from the sale or exchange of a capital asset.
+
+(b) Short-term gains and losses Except as provided in the regulations under section 1092(b) or this section, or in section 1233, if gain or loss on the sale, exchange, or termination of a securities futures contract to sell property is considered as gain or loss from the sale or exchange of a capital asset, such gain or loss shall be treated as short-term capital gain or loss.
+
+(c) Securities futures contract For purposes of this section, the term “securities futures contract” means any security future (as defined in section 3(a)(55)(A) of the Securities Exchange Act of 1934, as in effect on the date of the enactment of this section). The Secretary may prescribe regulations regarding the status of contracts the values of which are determined directly or indirectly by reference to any index which becomes (or ceases to be) a narrow-based security index (as defined for purposes of section 1256(g)(6)).
+
+(d) Contracts not treated as commodity futures contracts For purposes of this title, a securities futures contract shall not be treated as a commodity futures contract.
+
+(e) Regulations The Secretary shall prescribe such regulations as may be appropriate to provide for the proper treatment of securities futures contracts under this title.
+
+(f) Cross reference For special rules relating to dealer securities futures contracts, see section 1256.
+
+(Added Pub. L. 106–554, § 1(a)(7) [title IV, § 401(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–648; amended Pub. L. 107–147, title IV, § 412(d)(1)(B), (3)(B), Mar. 9, 2002, 116 Stat. 53, 54; Pub. L. 108–311, title IV, § 405(a)(1), Oct. 4, 2004, 118 Stat. 1188.)
+
+## Notes
+
+Editorial Notes
+
+References in TextSection 3(a)(55)(A) of the Securities Exchange Act of 1934, referred to in subsec. (c), is classified to section 78c(a)(55)(A) of Title 15, Commerce and Trade. The date of the enactment of this section, referred to in subsec. (c), is the date of enactment of Pub. L. 106–554, which was approved Dec. 21, 2000.
+
+Codification Pub. L. 106–554, § 1(a)(7) [title IV, § 401(a)], which directed amendment of subpart IV of subchapter P of chapter 1 by adding this section after section 1234A, was executed by adding this section after 1234A of this part which is part IV of subchapter P of chapter 1, to reflect the probable intent of Congress.
+
+Amendments2004—Subsec. (c). Pub. L. 108–311 inserted at end “The Secretary may prescribe regulations regarding the status of contracts the values of which are determined directly or indirectly by reference to any index which becomes (or ceases to be) a narrow-based security index (as defined for purposes of section 1256(g)(6)).” 2002—Subsec. (a)(1). Pub. L. 107–147, § 412(d)(1)(B)(i), substituted “sale, exchange, or termination of a securities futures contract” for “sale or exchange of a securities futures contract”. Subsec. (b). Pub. L. 107–147, § 412(d)(1)(B)(i), (3)(B), inserted “or in section 1233,” after “or this section,” and substituted “sale, exchange, or termination of a securities futures contract” for “sale or exchange of a securities futures contract”. Subsec. (f). Pub. L. 107–147, § 412(d)(1)(B)(ii), added subsec. (f).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2004 AmendmentPub. L. 108–311, title IV, § 405(b), Oct. 4, 2004, 118 Stat. 1189, provided that: “The amendments made by subsection (a) [amending this section and section 1256 of this title] shall take effect as if included in section 401 of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by section 1(a)(7) of Pub. L. 106–554, Dec. 21, 2000, 114 Stat. 2763, 2763A–587].”
+
+Effective Date of 2002 AmendmentAmendment by Pub. L. 107–147 effective as if included in the provisions of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by Pub. L. 106–554], to which such amendment relates, see section 412(e) of Pub. L. 107–147, set out as a note under section 151 of this title.

legal/us/code/title-26/chapter-1/section-1235.md

@@ -0,0 +1,75 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1235"
+description: "Sale or exchange of patents"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1235"
+citation: "26 U.S.C. § 1235"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1235"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "ff69bf0865e15d1165ae715678447432097ff36c527edc0c49becc9896b7ab15"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "5f6ab762a4489e143e54c877a00c0f1048cbdfc6fdfd07422c5139c1e8be92c9"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1235 - Sale or exchange of patents
+
+## Text
+
+(a) General A transfer (other than by gift, inheritance, or devise) of property consisting of all substantial rights to a patent, or an undivided interest therein which includes a part of all such rights, by any holder shall be considered the sale or exchange of a capital asset held for more than 1 year, regardless of whether or not payments in consideration of such transfer are—
+
+(1) payable periodically over a period generally coterminous with the transferee’s use of the patent, or
+
+(2) contingent on the productivity, use, or disposition of the property transferred.
+
+(b) “Holder” defined For purposes of this section, the term “holder” means—
+
+(1) any individual whose efforts created such property, or
+
+(2) any other individual who has acquired his interest in such property in exchange for consideration in money or money’s worth paid to such creator prior to actual reduction to practice of the invention covered by the patent, if such individual is neither—
+
+(A) the employer of such creator, nor
+
+(B) related to such creator (within the meaning of subsection (c)).
+
+(c) Related persons Subsection (a) shall not apply to any transfer, directly or indirectly, between persons specified within any one of the paragraphs of section 267(b) or persons described in section 707(b); except that, in applying section 267(b) and (c) and section 707(b) for purposes of this section—
+
+(1) the phrase “25 percent or more” shall be substituted for the phrase “more than 50 percent” each place it appears in section 267(b) or 707(b), and
+
+(2) paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants.
+
+(d) Cross reference For special rule relating to nonresident aliens, see section 871(a).
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 329; Pub. L. 85–866, title I, § 54(a), Sept. 2, 1958, 72 Stat. 1644; Pub. L. 94–455, title XIV, § 1402(b)(1)(V), (2), Oct. 4, 1976, 90 Stat. 1732; Pub. L. 98–369, div. A, title I, § 174(b)(5)(C), title X, § 1001(b)(19), (e), July 18, 1984, 98 Stat. 707, 1012; Pub. L. 105–206, title V, § 5001(a)(5), title VI, § 6005(d)(4), July 22, 1998, 112 Stat. 788, 805; Pub. L. 113–295, div. A, title II, § 221(a)(82), Dec. 19, 2014, 128 Stat. 4049.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2014—Subsec. (b)(2)(B). Pub. L. 113–295, § 221(a)(82)(B), substituted “subsection (c)” for “subsection (d)”. Subsecs. (c) to (e). Pub. L. 113–295, § 221(a)(82)(A), redesignated subsecs. (d) and (e) as (c) and (d), respectively, and struck out former subsec. (c). Prior to amendment, text of subsec. (c) read as follows: “This section shall be applicable with regard to any amounts received, or payments made, pursuant to a transfer described in subsection (a) in any taxable year to which this subtitle applies, regardless of the taxable year in which such transfer occurred.” 1998—Subsec. (a). Pub. L. 105–206, § 6005(d)(4), substituted “18 months” for “1 year” in introductory provisions. Pub. L. 105–206, § 5001(a)(5), substituted “1 year” for “18 months” in introductory provisions. 1984—Subsec. (a). Pub. L. 98–369, § 1001(b)(19), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below. Subsec. (d). Pub. L. 98–369, § 174(b)(5)(C), substituted “section 267(b) or persons described in section 707(b)” for “section 267(b)” and “section 267(b) and (c) and section 707(b)” for “section 267(b) and (c)” in introductory provisions, and substituted “section 267(b) or 707(b)” for “section 267(b)” in par. (1). 1976—Subsec. (a). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”. Pub. L. 94–455, § 1402(b)(1)(V), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977. 1958—Subsec. (d). Pub. L. 85–866 substituted provisions set out as subsec. (d) for provisions reading “Subsection (a) shall not apply to any sale or exchange between an individual and any other related person (as defined in section 267(b)), except brothers and sisters, whether by the whole or half blood.”
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 1998 AmendmentAmendment by section 5001 of Pub. L. 105–206 effective Jan. 1, 1998, see section 5001(b)(2) of Pub. L. 105–206, set out as a note under section 1 of this title. Amendment by section 6000(d)(4) of Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
+
+Effective Date of 1984 AmendmentAmendment by section 174(b)(5)(C) of Pub. L. 98–369 applicable to transactions after Dec. 31, 1983, in taxable years ending after that date, see section 174(c)(2)(A) of Pub. L. 98–369, set out as a note under section 267 of this title. Amendment by section 1001(b)(19) of Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XIV, § 1402(b)(1), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning in 1977. Pub. L. 94–455, title XIV, § 1402(b)(2), Oct. 4, 1976, 90 Stat. 1732, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977.
+
+Effective Date of 1958 AmendmentPub. L. 85–866, title I, § 54(b), Sept. 2, 1958, 72 Stat. 1644, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to taxable years ending after the date of the enactment of this Act [Sept. 2, 1958], but only with respect to transfers after such date.”

legal/us/code/title-26/chapter-1/section-1236.md

@@ -0,0 +1,77 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1236"
+description: "Dealers in securities"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1236"
+citation: "26 U.S.C. § 1236"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1236"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "5d2a0e3e38b38183f2da8fc87ac6ee4abefc0d94620f56f3de33491f39e510dc"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "3c31235b75ba79fef55c872556eeb11fd8887f921c1c17d44f63a3c85732ae96"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1236 - Dealers in securities
+
+## Text
+
+(a) Capital gains Gain by a dealer in securities from the sale or exchange of any security shall in no event be considered as gain from the sale or exchange of a capital asset unless—
+
+(1) the security was, before the close of the day on which it was acquired (or such earlier time as the Secretary may prescribe by regulations), clearly identified in the dealer’s records as a security held for investment; and
+
+(2) the security was not, at any time after the close of such day (or such earlier time), held by such dealer primarily for sale to customers in the ordinary course of his trade or business.
+
+(b) Ordinary losses Loss by a dealer in securities from the sale or exchange of any security shall, except as otherwise provided in section 582(c), (relating to bond, etc., losses of banks), in no event be considered as ordinary loss if at any time the security was clearly identified in the dealer’s records as a security held for investment.
+
+(c) Definition of security For purposes of this section, the term “security” means any share of stock in any corporation, certificate of stock or interest in any corporation, note, bond, debenture, or evidence of indebtedness, or any evidence of an interest in or right to subscribe to or purchase any of the foregoing.
+
+(d) Special rule for floor specialists (1) In general In the case of a floor specialist (but only with respect to acquisitions, in connection with his duties on an exchange, of stock in which the specialist is registered with the exchange), subsection (a) shall be applied—
+
+(A) by inserting “the 7th business day following” before “the day” the first place it appears in paragraph (1) and by inserting “7th business” before “day” in paragraph (2), and
+
+(B) by striking the parenthetical phrase in paragraph (1).
+
+(2) Floor specialist The term “floor specialist” means a person who is—
+
+(A) a member of a national securities exchange,
+
+(B) is registered as a specialist with the exchange, and
+
+(C) meets the requirements for specialists established by the Securities and Exchange Commission.
+
+(e) Special rule for options For purposes of subsection (a), any security acquired by a dealer pursuant to an option held by such dealer may be treated as held for investment only if the dealer, before the close of the day on which the option was acquired, clearly identified the option on his records as held for investment. For purposes of the preceding sentence, the term “option” includes the right to subscribe to or purchase any security.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 330; Pub. L. 94–455, title XIX, § 1901(b)(3)(E), Oct. 4, 1976, 90 Stat. 1793; Pub. L. 97–34, title V, § 506, Aug. 13, 1981, 95 Stat. 332; Pub. L. 97–448, title I, § 105(d)(1), Jan. 12, 1983, 96 Stat. 2387; Pub. L. 98–369, div. A, title I, § 107(b), July 18, 1984, 98 Stat. 630; Pub. L. 113–295, div. A, title II, § 221(a)(83), Dec. 19, 2014, 128 Stat. 4049.)
+
+## Notes
+
+Editorial Notes
+
+Amendments2014—Subsec. (b). Pub. L. 113–295 struck out “after November 19, 1951,” after “time”. 1984—Subsec. (a)(1). Pub. L. 98–369, § 107(b)(1), substituted “the security was, before the close of the day on which it was acquired (or such earlier time as the Secretary may prescribe by regulations), clearly identified in the dealer’s records as a security held for investment; and” for “the security was, before the close of the day on which it was acquired (before the close of the following day in the case of an acquisition before January 1, 1982), clearly identified in the dealer’s records as a security held for investment or if acquired before October 20, 1951, was so identified before November 20, 1951; and”. Subsec. (a)(2). Pub. L. 98–369, § 107(b)(2), inserted “(or such earlier time)” after “such day”. 1983—Subsec. (e). Pub. L. 97–448 added subsec. (e). 1981—Subsec. (a). Pub. L. 97–34, § 506(a), substituted “before the close of the day on which it was acquired (before the close of the following day in the case of an acquisition before January 1, 1982)” for “before the expiration of the 30th day after the date of its acquisition” in par. (1) and “close of such day” for “expiration of such 30th day” in par. (2). Subsec. (d). Pub. L. 97–34, § 506(b), added subsec. (d). 1976—Subsec. (b). Pub. L. 94–455 substituted “ordinary loss” for “loss from the sale or exchange of property which is not a capital asset”.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
+
+Effective Date of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to positions entered into after July 18, 1984, in taxable years ending after that date, see section 107(e) of Pub. L. 98–369, set out as a note under section 1092 of this title.
+
+Effective Date of 1983 AmendmentPub. L. 97–448, title I, § 105(d)(2), Jan. 12, 1983, 96 Stat. 2387, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to securities acquired after September 22, 1982, in taxable years ending after such date.”
+
+Effective Date of 1981 AmendmentAmendment by Pub. L. 97–34 applicable to property acquired by the taxpayer after Aug. 13, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Pub. L. 97–34, set out as an Effective Date note under section 1092 of this title.
+
+Effective Date of 1976 AmendmentAmendment by Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.

legal/us/code/title-26/chapter-1/section-1237.md

@@ -0,0 +1,81 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1237"
+description: "Real property subdivided for sale"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1237"
+citation: "26 U.S.C. § 1237"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1237"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "c301bee92cb3e5a97cffbb606b61a9b02ae8ff4619786d04e7f2bb31ab9148e8"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "56399ed0725175f5d2d8959eb9519be02c3c6dab3a60c4fc40060d145d268444"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1237 - Real property subdivided for sale
+
+## Text
+
+(a) General Any lot or parcel which is part of a tract of real property in the hands of a taxpayer other than a C corporation shall not be deemed to be held primarily for sale to customers in the ordinary course of trade or business at the time of sale solely because of the taxpayer having subdivided such tract for purposes of sale or because of any activity incident to such subdivision or sale, if—
+
+(1) such tract, or any lot or parcel thereof, had not previously been held by such taxpayer primarily for sale to customers in the ordinary course of trade or business (unless such tract at such previous time would have been covered by this section) and, in the same taxable year in which the sale occurs, such taxpayer does not so hold any other real property; and
+
+(2) no substantial improvement that substantially enhances the value of the lot or parcel sold is made by the taxpayer on such tract while held by the taxpayer or is made pursuant to a contract of sale entered into between the taxpayer and the buyer. For purposes of this paragraph, an improvement shall be deemed to be made by the taxpayer if such improvement was made by—
+
+(A) the taxpayer or members of his family (as defined in section 267(c)(4)), by a corporation controlled by the taxpayer, an S corporation which included the taxpayer as a shareholder, or by a partnership which included the taxpayer as a partner; or
+
+(B) a lessee, but only if the improvement constitutes income to the taxpayer; or
+
+(C) Federal, State, or local government, or political subdivision thereof, but only if the improvement constitutes an addition to basis for the taxpayer; and
+
+(3) such lot or parcel, except in the case of real property acquired by inheritance or devise, is held by the taxpayer for a period of 5 years.
+
+(b) Special rules for application of section (1) Gains If more than 5 lots or parcels contained in the same tract of real property are sold or exchanged, gain from any sale or exchange (which occurs in or after the taxable year in which the sixth lot or parcel is sold or exchanged) of any lot or parcel which comes within the provisions of paragraphs (1), (2) and (3) of subsection (a) of this section shall be deemed to be gain from the sale of property held primarily for sale to customers in the ordinary course of the trade or business to the extent of 5 percent of the selling price.
+
+(2) Expenditures of sale For the purpose of computing gain under paragraph (1) of this subsection, expenditures incurred in connection with the sale or exchange of any lot or parcel shall neither be allowed as a deduction in computing taxable income, nor treated as reducing the amount realized on such sale or exchange; but so much of such expenditures as does not exceed the portion of gain deemed under paragraph (1) of this subsection to be gain from the sale of property held primarily for sale to customers in the ordinary course of trade or business shall be so allowed as a deduction, and the remainder, if any, shall be treated as reducing the amount realized on such sale or exchange.
+
+(3) Necessary improvements No improvement shall be deemed a substantial improvement for purposes of subsection (a) if the lot or parcel is held by the taxpayer for a period of 10 years and if—
+
+(A) such improvement is the building or installation of water, sewer, or drainage facilities or roads (if such improvement would except for this paragraph constitute a substantial improvement);
+
+(B) it is shown to the satisfaction of the Secretary that the lot or parcel, the value of which was substantially enhanced by such improvement, would not have been marketable at the prevailing local price for similar building sites without such improvement; and
+
+(C) the taxpayer elects, in accordance with regulations prescribed by the Secretary, to make no adjustment to basis of the lot or parcel, or of any other property owned by the taxpayer, on account of the expenditures for such improvements. Such election shall not make any item deductible which would not otherwise be deductible.
+
+(c) Tract defined For purposes of this section, the term “tract of real property” means a single piece of real property, except that 2 or more pieces of real property shall be considered a tract if at any time they were contiguous in the hands of the taxpayer or if they would be contiguous except for the interposition of a road, street, railroad, stream, or similar property. If, following the sale or exchange of any lot or parcel from a tract of real property, no further sales or exchanges of any other lots or parcels from the remainder of such tract are made for a period of 5 years, such remainder shall be deemed a tract.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 330; Apr. 27, 1956, ch. 214, §§ 1, 2, 70 Stat. 118; Pub. L. 85–866, title I, § 55, Sept. 2, 1958, 72 Stat. 1645; Pub. L. 91–686, § 2(a), Jan. 12, 1971, 84 Stat. 2071; Pub. L. 94–455, title XIX, §§ 1901(a)(138), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1787, 1834; Pub. L. 104–188, title I, § 1314, Aug. 20, 1996, 110 Stat. 1785.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1996—Subsec. (a). Pub. L. 104–188, § 1314(a), substituted “other than a C corporation” for “other than a corporation” in introductory provisions. Subsec. (a)(2)(A). Pub. L. 104–188, § 1314(b), inserted “an S corporation which included the taxpayer as a shareholder,” after “controlled by the taxpayer,”. 1976—Subsec. (b)(3)(B), (C). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”. Subsec. (d). Pub. L. 94–455, § 1901(a)(138), struck out effective date provision making the section applicable only with respect to sales of property occurring after Dec. 31, 1953, except that for purposes of subsec. (c) defining tract of real property and for determining the number of sales under subsec. (b)(1) of this section, all sales of lots and parcels from any tract of real property during the period of 5 years before Dec. 31, 1953, shall be taken into account, except as provided in subsec. (c). 1971—Subsec. (a). Pub. L. 91–686, § 2(a)(1), substituted “other than a corporation” for “(including corporations only if no shareholder directly or indirectly holds real property for sale to customers in the ordinary course of trade or business and only in the case of property described in the last sentence of subsection (b)(3))”. Subsec. (b). Pub. L. 91–686, § 2(a)(2), struck out sentence which made subpars. (B) and (C) inapplicable in the case of property acquired through the foreclosure of a lien thereon which secured the payment of an indebtedness to the taxpayer or (in the case of a corporation) to a creditor who has transferred the foreclosure bid to the taxpayer in exchange for all of its stock and other consideration and in the case of property adjacent to such property if 80 percent of the real property owned by the taxpayer was property described in the first part of the sentence. 1958—Subsec. (a)(1). Pub. L. 85–866 substituted “and, in the same taxable year” for “or, in the same taxable year”. 1956—Subsec. (a). Act Apr. 27, 1956, § 1, substituted “(including corporations only if no shareholder directly or indirectly holds real property for sale to customers in the ordinary course of trade or business and only in the case of property described in the last sentence of subsection (b)(3))” for “other than a corporation”. Subsec. (b)(3). Act Apr. 27, 1956, § 2, substituted “water, sewer, or drainage facilities” for “water or sewer facilities” in subpar. (A), and inserted provision at end that requirements of subpars. (B) and (C) do not apply to certain specified property.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1996 AmendmentAmendment by Pub. L. 104–188 applicable to taxable years beginning after Dec. 31, 1996, see section 1317(a) of Pub. L. 104–188, set out as a note under section 641 of this title.
+
+Effective Date of 1976 AmendmentAmendment by section 1901(a)(138) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
+
+Effective Date of 1971 AmendmentPub. L. 91–686, § 2(b), Jan. 12, 1971, 84 Stat. 2071, provided that: “The amendments made by subsection (a) [amending this section] shall be effective for taxable years beginning after the date of enactment of this Act [Jan. 12, 1971].”
+
+Effective Date of 1958 AmendmentAmendment by Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.
+
+Effective Date of 1956 AmendmentAct Apr. 27, 1956, ch. 214, § 3, 70 Stat. 119, provided that: “This Act [amending this section] shall apply to all taxable years beginning after Dec. 31, 1954.”
+
+Sales or Exchanges by Corporations of Real Property Held More Than 25 YearsPub. L. 91–686, § 1, Jan. 12, 1971, 84 Stat. 2070, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided: “That (a) for purposes of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] any lot or parcel of real property sold or exchanged by a corporation which would, but for this Act, be treated as property held primarily for sale to customers in the ordinary course of trade or business shall not, except to the extent provided in (b), be so treated if—“(1) no shareholder of the corporation directly or indirectly holds real property primarily for sale to customers in the ordinary course of trade or business; and “(2)(A) such lot or parcel is a part of real property (i) held for more than twenty-five years at the time of sale or exchange, and (ii) acquired before January 1, 1934, by the corporation as a result of the foreclosure of a lien (or liens) thereon which secured the payment of indebtedness held by one or more creditors who transferred one or more foreclosure bids to the corporation in exchange for all its stock (with or without other consideration), or “(B)(i) such lot or parcel is a part of additional real property acquired before January 1, 1957, by the corporation in the near vicinity of any real property to which subparagraph (A) applies, or “(ii) such lot or parcel is wholly or to some extent a part of any minor acquisition made after December 31, 1956, by the corporation to adjust boundaries, to fill gaps in previously acquired property, to facilitate the installation of streets, utilities, and other public facilities, or to facilitate the sale of adjacent property, or “(iii) such lot or parcel is wholly or to some extent a part of a reacquisition by the corporation after December 31, 1956, of property previously owned by the corporation;but only if at least 80 percent (as measured by area) of the real property sold or exchanged by the corporation within the taxable year is property described in subparagraph (A); and “(3) there were no acquisitions of real property by the corporation after December 31, 1956, other than—“(A) acquisitions described in paragraph (2)(B)(ii) and reacquisitions described in paragraph (2)(B)(iii), or “(B) acquisitions of real property used in a trade or business of the corporation or held for investment by the corporation; and “(4) the corporation did not after December 31, 1957, sell or exchange (except in condemnation or under threat of condemnation) any residential lot or parcel on which, at the time of the sale or exchange, there existed any substantial improvements (other than improvements in existence at the time the land was acquired by the corporation) except subdivision, clearing, grubbing, and grading, building or installation of water, sewer, and drainage facilities, construction of roads, streets, and sidewalks, and installation of utilities.” In any case in which a corporation referred to in paragraphs (1), (2), (3), and (4) is a member of an affiliated group as defined in section 1504(a) of the Internal Revenue Code of 1986, such affiliated group shall, for purposes of such paragraphs, be treated as a single corporation. “(b)(1) Gain from any sale or exchange described in subsection (a) shall be deemed, for purposes of such Code, to be gain from the sale of property held primarily for sale to customers in the ordinary course of trade or business to the extent of 5 percent of the selling price. “(2) For the purpose of computing gain under paragraph (1), expenditures incurred in connection with the sale or exchange of any lot or parcel shall neither be allowed as a deduction in computing taxable income, nor treated as reducing the amount realized on such sale or exchange; but so much of such expenditures as does not exceed the portion of gain deemed under paragraph (1) to be gain from the sale of property held primarily for sale to customers in the ordinary course of trade or business shall be so allowed as a deduction, and the remainder, if any, shall be treated as reducing the amount realized on such sale or exchange. “(c) The provisions of subsections (a) and (b) shall apply to taxable years beginning after December 31, 1957, and before January 1, 1984.”

legal/us/code/title-26/chapter-1/section-1238.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1238"
+description: "Repealed. Pub. L. 101–508, title XI, § 11801(a)(35), Nov. 5, 1990, 104 Stat. 1388–521]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1238"
+citation: "26 U.S.C. § 1238"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1238"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "c63af25dc13ef6b0b2d7368e6d6f1039e1c24391996afcc1813545440df81fd8"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "5ccf511e8a354b503eff8f5e10f03a0bf604f030c9a07e9274177a6ee4797a93"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1238 - Repealed. Pub. L. 101–508, title XI, § 11801(a)(35), Nov. 5, 1990, 104 Stat. 1388–521]
+
+## Notes
+
+Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 332; Oct. 4, 1976, Pub. L. 94–455, title XIX, §§ 1901(b)(3)(K), 1951(c)(2)(A), 90 Stat. 1793, 1840, related to amortization in excess of depreciation.
+
+Statutory Notes and Related Subsidiaries
+
+Savings ProvisionFor provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

legal/us/code/title-26/chapter-1/section-1239.md

@@ -0,0 +1,81 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1239"
+description: "Gain from sale of depreciable property between certain related taxpayers"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1239"
+citation: "26 U.S.C. § 1239"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1239"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "3c790f2f19794042de07292a6671d848380a18101f2882a1c8401eec2bae96f5"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "aa317424521be19dc80327b7b5fd3025ce7b5568a44d9c54067fc39400e9d918"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1239 - Gain from sale of depreciable property between certain related taxpayers
+
+## Text
+
+(a) Treatment of gain as ordinary income In the case of a sale or exchange of property, directly or indirectly, between related persons, any gain recognized to the transferor shall be treated as ordinary income if such property is, in the hands of the transferee, of a character which is subject to the allowance for depreciation provided in section 167.
+
+(b) Related persons For purposes of subsection (a), the term “related persons” means—
+
+(1) a person and all entities which are controlled entities with respect to such person,
+
+(2) a taxpayer and any trust in which such taxpayer (or his spouse) is a beneficiary, unless such beneficiary’s interest in the trust is a remote contingent interest (within the meaning of section 318(a)(3)(B)(i)), and
+
+(3) except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of such estate.
+
+(c) Controlled entity defined (1) General rule For purposes of this section, the term “controlled entity” means, with respect to any person—
+
+(A) a corporation more than 50 percent of the value of the outstanding stock of which is owned (directly or indirectly) by or for such person,
+
+(B) a partnership more than 50 percent of the capital interest or profits interest in which is owned (directly or indirectly) by or for such person, and
+
+(C) any entity which is a related person to such person under paragraph (3), (10), (11), or (12) of section 267(b).
+
+(2) Constructive ownership For purposes of this section, ownership shall be determined in accordance with rules similar to the rules under section 267(c) (other than paragraph (3) thereof).
+
+(d) Employer and related employee association For purposes of subsection (a), the term “related person” also includes—
+
+(1) an employer and any person related to the employer (within the meaning of subsection (b)), and
+
+(2) a welfare benefit fund (within the meaning of section 419(e)) which is controlled directly or indirectly by persons referred to in paragraph (1).
+
+(e) Patent applications treated as depreciable prop­erty For purposes of this section, a patent application shall be treated as property which, in the hands of the transferee, is of a character which is subject to the allowance for depreciation provided in section 167.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 332; Pub. L. 85–866, title I, § 56, Sept. 2, 1958, 72 Stat. 1645; Pub. L. 94–455, title XXI, § 2129(a), Oct. 4, 1976, 90 Stat. 1922; Pub. L. 95–600, title VII, § 701(v)(1), Nov. 6, 1978, 92 Stat. 2920; Pub. L. 96–471, § 5, Oct. 19, 1980, 94 Stat. 2255; Pub. L. 97–448, title III, § 301, Jan. 12, 1983, 96 Stat. 2397; Pub. L. 98–369, div. A, title I, § 175(a), (b), title IV, § 421(b)(6)(A), title V, § 557(a), July 18, 1984, 98 Stat. 708, 794, 898; Pub. L. 99–514, title VI, § 642(a)(1)(A)–(C), Oct. 22, 1986, 100 Stat. 2283, 2284; Pub. L. 105–34, title XIII, § 1308(b), Aug. 5, 1997, 111 Stat. 1041.)
+
+## Notes
+
+Editorial Notes
+
+Amendments1997—Subsec. (b)(3). Pub. L. 105–34 added par. (3). 1986—Subsec. (b)(1). Pub. L. 99–514, § 642(a)(1)(A), substituted “controlled entities” for “80-percent owned entities”. Subsec. (c). Pub. L. 99–514, § 642(a)(1)(B), (C), in heading, substituted “Controlled entity” for “80-percent owned entity”, in par. (1), in introductory provisions, substituted “controlled entity” for “80-percent owned entity”, in subpar. (A), substituted “more than 50 percent of the value” for “80 percent or more in value”, in subpar. (B), substituted “more than 50 percent” for “80 percent or more”, and added subpar. (C), and amended par. (2) generally. Prior to amendment, par. (2) read as follows: “For purposes of subparagraphs (A) and (B) of paragraph (1), the principles of section 318 shall apply, except that— “(A) the members of an individual’s family shall consist only of such individual and such individual’s spouse, “(B) paragraph (2)(C) of section 318(a) shall be applied without regard to the 50-percent limitation contained therein, and “(C) paragraph (3) of section 318(a) shall not apply.” 1984—Subsec. (b). Pub. L. 98–369, § 421(b)(6), redesignated pars. (2) and (3) as (1) and (2), respectively. Former par. (1), defining a husband and wife as “related persons”, was struck out. Pub. L. 98–369, § 175(b), amended subsec. (b) generally, adding par. (3). Subsec. (d). Pub. L. 98–369, § 557(a), added subsec. (d). Subsec. (e). Pub. L. 98–369, § 175(a), added subsec. (e). 1983—Subsec. (b). Pub. L. 97–448, § 301(a), substituted provisions that “related persons” means (1) a husband and wife, and (2) a person and all entities which are 80-percent owned entities with respect to such person, for provisions which provided that “related persons” meant (1) the taxpayer and the taxpayer’s spouse, (2) the taxpayer and an 80-percent owned entity, or (3) two 80-percent owned entities. Subsec. (c)(1). Pub. L. 97–448, § 301(b), inserted “, with respect to any person” after “means” in introductory provisions and substituted “such person” for “the taxpayer” in subpars. (A) and (B). Subsec. (c)(2). Pub. L. 97–448, § 301(b), struck out “and” at end of subpar. (A), substituted “paragraph (2)(C)” for “paragraphs (2)(C) and (3)(C)” in subpar. (B), and added subpar. (C). 1980—Subsec. (b)(1). Pub. L. 96–471 substituted “the taxpayer and the taxpayer’s spouse” for “a husband and wife”. Subsec. (b)(2). Pub. L. 96–471 substituted “the taxpayer and an 80-percent owned entity, or” for “an individual and a corporation 80 percent or more in value of the outstanding stock of which is owned, directly or indirectly, by or for such individual, or”. Subsec. (b)(3). Pub. L. 96–471 substituted “two 80-percent owned entities” for “two or more corporations 80 percent or more in value of the outstanding stock of each of which is owned, directly or indirectly, by or for the same individual”. Subsec. (c). Pub. L. 96–471 substituted provisions defining an “80-percent owned entity” for provisions relating to constructive ownership of stock. 1978—Subsec. (a). Pub. L. 95–600 substituted “of a character which is subject to the allowance for depreciation provided in section 167” for “subject to the allowance for depreciation provided in section 167”. 1976—Pub. L. 94–455 substituted “sale of depreciable property between certain related taxpayers” for “sale of certain property between spouses or between an individual and a controlled corporation” in section catchline. Subsec. (a). Pub. L. 94–455 substituted provisions for transactions between related persons for such transactions (1) between a husband and wife; or (2) between an individual and a corporation more than 80 percent in value of the outstanding stock of which is owned by such individual, his spouse, and his minor children and minor grandchildren and “any gain recognized to the transferee shall be treated as ordinary income if such property is, in the hands of the transferee, subject to the allowance for depreciation provided in section 167” for “any gain recognized to the transferor from the sale or exchange of such property shall be considered as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231”. Subsec. (b). Pub. L. 94–455 substituted definition of “related persons” for prior provision making section applicable only to sales or exchanges of depreciable property. Subsec. (c). Pub. L. 94–455 substituted provision respecting constructive ownership of stock for prior provision making section inapplicable with respect to sales or exchanges made on or before May 3, 1951. 1958—Subsec. (c). Pub. L. 85–866 added subsec. (c).
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of 1997 AmendmentAmendment by Pub. L. 105–34 applicable to taxable years beginning after Aug. 5, 1997, see section 1308(c) of Pub. L. 105–34, set out as a note under section 267 of this title.
+
+Effective Date of 1986 AmendmentPub. L. 99–514, title VI, § 642(c), Oct. 22, 1986, 100 Stat. 2284, as amended by Pub. L. 100–647, title I, § 1006(i)(3), Nov. 10, 1988, 102 Stat. 3411, provided that: “(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 453 and 707 of this title] shall apply to sales after the date of the enactment of this Act [Oct. 22, 1986], in taxable years ending after such date. “(2) Transitional rule for binding contracts.—The amendments made by this section shall not apply to sales made after August 14, 1986, which are made pursuant to a binding contract in effect on August 14, 1986, and at all times thereafter.”
+
+Effective Date of 1984 AmendmentPub. L. 98–369, div. A, title I, § 175(c), July 18, 1984, 98 Stat. 708, provided that: “The amendments made by this section [amending this section] shall apply to sales or exchanges after March 1, 1984, in taxable years ending after such date.” Amendment by section 421(b)(6) of Pub. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an Effective Date note under section 1041 of this title. Pub. L. 98–369, div. A, title V, § 557(b), July 18, 1984, 98 Stat. 899, provided that: “The amendment made by subsection (a) [amending this section] shall apply to sales or exchanges after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.”
+
+Effective Date of 1983 AmendmentAmendment by Pub. L. 97–448 applicable to dispositions made after Oct. 19, 1980, in taxable years ending after such date, see section 311(a) of Pub. L. 97–448, set out as a note under section 453 of this title.
+
+Effective Date of 1978 AmendmentPub. L. 95–600, title VII, § 701(v)(2), Nov. 6, 1978, 92 Stat. 2920, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by paragraph (1) [amending this section] shall apply as if included in the amendment made to section 1239 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] by section 2129(a) of the Tax Reform Act of 1976 [section 2129(a) of Pub. L. 94–455].”
+
+Effective Date of 1976 AmendmentPub. L. 94–455, title XXI, § 2129(b), Oct. 4, 1976, 90 Stat. 1922, provided that: “The amendment made by this section [amending this section] shall apply to sales or exchanges after the date of the enactment of this Act [Oct. 4, 1976]. For purposes of the preceding sentence, a sale or exchange is considered to have occurred on or before such date of enactment if such sale or exchange is made pursuant to a binding contract entered into on or before that date.”

legal/us/code/title-26/chapter-1/section-124.md

@@ -0,0 +1,39 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 124"
+description: "Repealed. Pub. L. 101–508, title XI, § 11801(a)(9), Nov. 5, 1990, 104 Stat. 1388–520]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "124"
+citation: "26 U.S.C. § 124"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s124"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "36098c6621fc701d84276d634e9cba2e89b14302582b09ca11bc18c539d309dc"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "5484dddfa71b631aaac7322a73d60af5983507a30081eee48e7c03c4f1a49b05"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 124 - Repealed. Pub. L. 101–508, title XI, § 11801(a)(9), Nov. 5, 1990, 104 Stat. 1388–520]
+
+## Notes
+
+Section, added Pub. L. 95–618, title II, § 242(a), Nov. 9, 1978, 92 Stat. 3193, related to qualified transportation provided by employers.
+
+A prior section 124 was renumbered section 140 of this title.
+
+Statutory Notes and Related Subsidiaries
+
+Savings ProvisionFor provisions that nothing in repeal by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.

legal/us/code/title-26/chapter-1/section-1240.md

@@ -0,0 +1,37 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1240"
+description: "Repealed. Pub. L. 94–455, title XIX, § 1901(a)(139), Oct. 4, 1976, 90 Stat. 1787]"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1240"
+citation: "26 U.S.C. § 1240"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1240"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "441eae6622f26a61e7f82816df5c5d49dce85b87bf0ba9e113c8cd3c22b6bbf6"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "c8230c3c1c9258982c4e20ec7cef507163e15fa1c509e2f9a1fa6b0c19168374"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1240 - Repealed. Pub. L. 94–455, title XIX, § 1901(a)(139), Oct. 4, 1976, 90 Stat. 1787]
+
+## Notes
+
+Section, act Aug. 16, 1954, ch. 736, 68A Stat. 332, related to taxability to employee of termination payments.
+
+Statutory Notes and Related Subsidiaries
+
+Effective Date of RepealRepeal applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 2 of this title.

legal/us/code/title-26/chapter-1/section-1241.md

@@ -0,0 +1,35 @@
+---
+type: "LegalText"
+title: "26 U.S.C. § 1241"
+description: "Cancellation of lease or distributor’s agreement"
+jurisdiction: "us"
+corpus: "united_states_code"
+kind: "code_section"
+title_number: 26
+title_name: "INTERNAL REVENUE CODE"
+chapter_number: "1"
+chapter_name: "NORMAL TAXES AND SURTAXES"
+section: "1241"
+citation: "26 U.S.C. § 1241"
+status: "current"
+release_point: "119-100"
+release_date: "2026-06-26"
+source: "official"
+source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
+source_identifier: "/us/usc/t26/s1241"
+source_file: "data/legal/raw/us/code/title-26/usc26.xml"
+source_hash: "a1f8e45967db77de25de218dfe0436b03c2c5716e15def84a1f2d3edfe178e27"
+raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
+text_hash: "2cf47bc922ca7f7e430ffb25209d0258deeb16429ecd464d18fc8ced4079d461"
+retrieved_at: "2026-07-04"
+confidence: "official"
+tags: ["legal", "us-code"]
+---
+
+# 26 U.S.C. § 1241 - Cancellation of lease or distributor’s agreement
+
+## Text
+
+Amounts received by a lessee for the cancellation of a lease, or by a distributor of goods for the cancellation of a distributor’s agreement (if the distributor has a substantial capital investment in the distributorship), shall be considered as amounts received in exchange for such lease or agreement.
+
+(Aug. 16, 1954, ch. 736, 68A Stat. 333.)