§ 1035. Certain exchanges of insurance policies

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 309 · 68A Stat. 309

   Enacted · 26 U.S.C. § 1035

   Aug. 16, 1954, ch. 736, 68A Stat. 309

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 309

2. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 224(a) · 98 Stat. 494

   1. Substituted · 26 U.S.C. § 1035(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”

   2. Substituted · 26 U.S.C. § 1035(b)(1)

      Pub. L. 98–369, § 224(a), which directed the substitution of “as defined in section 816” for “as defined in section 801”

   Source evidence

   Code amendment note
   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”.

   Enacted provision · exact public law section
   (a) General Rule.— Paragraph (1) of section 1035(b) (defining endowment contract) is amended by striking out “a life insurance company as defined in section 801” and inserting in lieu thereof “an insurance company subject to tax under subchapter L”.

3. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 211(b)(15) · 98 Stat. 494

   Substituted · 26 U.S.C. § 1035(b)(1)

   Pub. L. 98–369, § 211(b)(15), substituted “section 816” for “section 801”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 98–369, § 211(b)(15), substituted “section 816” for “section 801”.

   Enacted provision · exact public law section
   (15) Paragraph (1) of section 1035(b) (defining endowment contract) is amended by striking out “section 801” and inserting in lieu thereof “section 816”.

4. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title XVIII § 1828 · 100 Stat. 2085

   Struck · 26 U.S.C. § 1035(b)(1)

   Pub. L. 99–514 struck out “subject to tax under subchapter L” after “with an insurance company”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 99–514 struck out “subject to tax under subchapter L” after “with an insurance company”.

   Enacted provision · exact public law section
   SEC. 1828. AMENDMENT RELATED TO SECTION 224 OF THE ACT. Paragraph (1) of section 1035(b) (defining endowment contract) is amended by striking out “subject to tax under subchapter L”.

5. 1997

   Pub. L. 105–34 title XI § 1131(b)(1) · 111 Stat. 788

   1. Added · 26 U.S.C. § 1035(c); 26 U.S.C. § 1035(d)

      Pub. L. 105–34 added subsec. (c)

   2. Redesignated · 26 U.S.C. § 1035(c); 26 U.S.C. § 1035(d)

      Pub. L. 105–34 redesignated former subsec. (c) as (d)

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 105–34 added subsec. (c) and redesignated former subsec. (c) as (d).

   Enacted provision · exact public law section
   (1) Gain recognition on exchanges involving foreign persons.—Section 1035 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: “(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.”.

6. 2006

   Pub. L. 109–280 § 844(b)(3)(A) · 120 Stat. 780

   Inserted · 26 U.S.C. § 1035(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

   Source evidence

   Code amendment note
   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.

   Enacted provision · exact public law section
   (A) in paragraph (1) by inserting “or for a qualified long-term care insurance contract” before the semicolon at the end,

   Effective date note
   Amendment 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.

7. 2006

   Pub. L. 109–280 § 844(b)(3)(B) · 120 Stat. 780

   Inserted · 26 U.S.C. § 1035(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

   Source evidence

   Code amendment note
   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.

   Enacted provision · exact public law section
   (B) in paragraph (2) by inserting “, or (C) for a qualified long-term care insurance contract” before the semicolon at the end, and

   Effective date note
   Amendment 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.

8. 2006

   Pub. L. 109–280 § 844(b)(3)(C) · 120 Stat. 780

   Inserted · 26 U.S.C. § 1035(a)(3)

   Pub. L. 109–280, § 844(b)(3)(C), inserted “or for a qualified long-term care insurance contract” after “annuity contract”

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 109–280, § 844(b)(3)(C), inserted “or for a qualified long-term care insurance contract” after “annuity contract”.

   Enacted provision · exact public law section
   (C) in paragraph (3) by inserting “or for a qualified long-term care insurance contract” before the period at the end.

   Effective date note
   Amendment 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.

9. 2006

   Pub. L. 109–280 § 844(b)(4) · 120 Stat. 780

   Added · 26 U.S.C. § 1035(a)(4)

   Pub. L. 109–280, § 844(b)(4), added par. (4)

   Source evidence

   Code amendment note
   Subsec. (a)(4). Pub. L. 109–280, § 844(b)(4), added par. (4).

   Enacted provision · exact public law section
   (4) Tax-free exchanges of qualified long-term care insurance contract.— Subsection (a) of section 1035 of such Code (relating to certain exchanges of insurance policies) is amended by striking “or” at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting “; or”, and by inserting after paragraph (3) the following new paragraph: “(4) a qualified long-term care insurance contract for a qualified long-term care insurance contract.” .

   Effective date note
   Amendment 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.

10. 2006

    Pub. L. 109–280 § 844(b)(1) · 120 Stat. 780

    Inserted · 26 U.S.C. § 1035(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.”

    Source evidence

    Code amendment note
    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.”

    Enacted provision · exact public law section
    (1) Annuity contracts can include qualified long-term care insurance riders.— Paragraph (2) of section 1035(b) of such Code is amended by adding at the end the following new sentence: “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.”.

    Effective date note
    Amendment 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.

11. 2006

    Pub. L. 109–280 § 844(b)(2) · 120 Stat. 780

    Inserted · 26 U.S.C. § 1035(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.”

    Source evidence

    Code amendment note
    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.”

    Enacted provision · exact public law section
    (2) Life insurance contracts can include qualified long-term care insurance riders.— Paragraph (3) of section 1035(b) of such Code is amended by adding at the end the following new sentence: “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.”.

    Effective date note
    Amendment 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.

12. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 div. U title IV § 401(a)(168) · 132 Stat. 348

    Struck · 26 U.S.C. § 1035(a)(1)

    Pub. L. 115–141 struck out “or” after semicolon at end

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 115–141 struck out “or” after semicolon at end.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

13 of 14 references resolved to an enrolled provision · 1 partial