Volume 84
Public Law 91–687
To amend section 163(g) of the Internal Revenue Code of 1954 which provides for treatment of losses on worthless securities.
Approved January 12, 1971
Statutory text
AN ACT
To amend section 163(g) of the Internal Revenue Code of 1954 which provides for treatment of losses on worthless securities.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That section 165 of
Taxes.
Worthless securities, losses.
the Internal Revenue Code of 1954 (relating to losses) is amended—
by striking out in subsection (g) (3) (A) “at least 95 percent of each class of its stock” and inserting in lieu thereof “stock possessing at least 80 percent of the voting power of all classes of its stock and at least 80 percent of each class of its nonvoting stock”, and
by adding at the end of subsection (g) (3) the following: “As used in subparagraph (A), the term ‘stock’ does not include nonvoting stock which is limited and preferred as to dividends.”
Sec. 2.
The amendments made by this Act shall apply with respect to taxable year’s beginning on or after January 1, 1970.
Approved January 12, 1971.