§ 1243. Loss of small business investment company

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. 1958

   Technical Amendments Act of 1958

   Pub. L. 85–866 title I § 57(a) · 72 Stat. 1606

   Enacted · 26 U.S.C. § 1243

   Added Pub. L. 85–866, title I, § 57(a), Sept. 2, 1958, 72 Stat. 1645

   Source evidence

   Code source credit
   Added Pub. L. 85–866, title I, § 57(a), Sept. 2, 1958, 72 Stat. 1645

   Enacted provision · exact public law section
   (a) Losses on Small Business Investment Company Stock and Losses of Small Business Investment Companies.— Part. IV of subchapter P of chapter 1 (relating to special rules for determining capital gains and losses) is amended by adding at the end thereof the following new sections: “SEC. 1242. LOSSES ON SMALL BUSINESS INVESTMENT COMPANY STOCK. “If— “(1) a loss is on stock in a small business investment company operating under the Small Business Investment Act of 1958, and “(2) such loss would (but for this section) be a loss from the sale or exchange of a capital asset, then such loss shall be treated as a loss from the sale or exchange of property which is not a capital asset. For purposes of section 172 26 USC 172. (relating to the net operating loss deduction) any amount of loss treated by reason of this section as a loss from the sale or exchange of property which is not a capital asset shall be treated as attributable to a trade or business of the taxpayer. “SEC. 1243. LOSS OF SMALL BUSINESS INVESTMENT COMPANY. “In the case of a small business investment company operating under the Small Business Investment Act of 1958, if— Ante, p. 689. “(1) a loss is on convertible debentures (including stock received pursuant to the conversion privilege) acquired pursuant to section 304 of the Small Business Investment Act of 1958, and “(2) such loss would (but for this section) be a loss from the sale or exchange of a capital asset, then such loss shall be treated as a loss from the sale or exchange of property which is not a capital asset.”

2. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 title IV § 433(b) · 83 Stat. 487

   Substituted · 26 U.S.C. § 1243(1)

   Pub. L. 91–172 substituted “stock received pursuant to the conversion privilege of convertible debentures” for “convertible debentures (including stock received pursuant to the conversion privilege)”

   Source evidence

   Code amendment note
   Par. (1). Pub. L. 91–172 substituted “stock received pursuant to the conversion privilege of convertible debentures” for “convertible debentures (including stock received pursuant to the conversion privilege)”.

   Enacted provision · exact public law section
   (b) Conforming Amendment.— Paragraph (1) of section 1243 (relating to loss of a small business investment company) is amended to read as follows: “(1) a loss is on stock received pursuant to the conversion privilege of convertible debentures acquired pursuant to section 72 Stat. 693; 81 Stat. 271. 15 USC 684. 304 of the Small Business Investment Act of 1958, and”.

3. 1976

   Pub. L. 94–455 title XIX § 1901(b)(3)(F) · 90 Stat. 1520

   Substituted · 26 U.S.C. § 1243

   Pub. L. 94–455 substituted “an ordinary loss” for “a loss from the sale or exchange of property which is not a capital asset”

   Source evidence

   Code amendment note
   Pub. L. 94–455 substituted “an ordinary loss” for “a loss from the sale or exchange of property which is not a capital asset”.

   Enacted provision · exact public law section
   (F) Sections 1242 and 1243 are each amended by striking 26 USC 1242, 1243. out “a loss from the sale or exchange of property which is not a capital asset” each place it appears and inserting in lieu thereof “an ordinary loss”.

   Effective date note
   Amendment 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.

3 of 3 references resolved to an enrolled provision