Title 26 — Internal Revenue Code
Part IV · Chapter 1 — Normal Taxes and Surtaxes
§ 1058. Transfers of securities under certain agreements
Statutory text
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.
Agreement requirements
In order to meet the requirements of this subsection, an agreement shall—
provide for the return to the transferor of securities identical to the securities transferred;
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;
not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and
meet such other requirements as the Secretary may by regulation prescribe.
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.
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.
Pub. L. 95–345 § 2(d)(1) · 92 Stat. 481
Enacted · 26 U.S.C. § 1058
(Added Pub. L. 95–345, § 2(d)(1), Aug. 15, 1978, 92 Stat. 482.)
Source evidence
Code source credit
(Added Pub. L. 95–345, § 2(d)(1), Aug. 15, 1978, 92 Stat. 482.)Enacted provision · exact public law section
(1) Nonrecognition of gain or loss.— Part IV of subchapter O of chapter 1 of such Code (relating to special rules) is amended 26 USC 1051 et seq. 26 USC 1059. by redesignating section 1058 as 1059 and by inserting after section 1057 the following new section: “SEC. 1058. TRANSFERS OF SECURITIES UNDER CERTAIN AGREEMENTS. “(a) General Rule.— In the case of a taxpayer who transfers securities (as defined in section 1236(c)) pursuant to an agreement 26 USC 1236. 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.”.
1 of 1 references resolved to an enrolled provision
Editorial Notes
Prior Provisions
A prior section 1058 was renumbered section 1063 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable with respect to amounts received after , 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.
Credits
(Added Pub. L. 95–345, § 2(d)(1), , 92 Stat. 482.)