117. (f) Retirement of See p. 204, Eighth Edition. Sec. 117. (f) Retirement of Sec. 117. (f) Retirement of Sec. bonds, etc.-For the purposes of bonds, etc.-For the purposes of bonds, etc. this chapter, amounts received by this chapter, amounts received by the holder upon the retirement of the holder upon the retirement of bonds, debentures, notes, or certifi-bonds, debentures, notes, or certificates or other evidences of indebt- cates or other evidences of indebtedness issued by any corporation edness issued by any corporation: (including those issued by a gov- (including those issued by a government or political subdivision ernment or political subdivision thereof), with interest coupons or thereof), with interest coupons or in registered form, shall be con- in registered form, shall be considered as amounts received in ex- sidered as amounts received in exchange therefor. change therefor. Sec. 117. (g) Gains and losses from short sales, etc.-For the purpose of this chapter Sec. 117. (g) Gains and losses from short sales, etc.-For the purpose of this chapter (1) gains or losses from short (1) gains or losses from short sales of property shall be consid- sales of property shall be considered as gains or losses from sales ered as gains or losses from sales or or exchanges of capital assets; and exchanges of capital assets; and (2) gains or losses attributable to (2) gains or losses attributable to the failure to exercise privileges the failure to exercise privileges or options to buy or sell property or options to buy or sell property shall be considered as short-term shall be considered as short-term capital gains or losses. capital gains or losses. Sec. 117. (h) Determination of Sec. 117. (h) Determination of period for which held.-For the period for which held.-For the purpose of this sectionpurpose of this section Sec. 117. (h) (1) In determining Sec. 117. (h) (1) In determining the period for which the taxpayer the period for which the taxpayer has held property received on an has held property received on an Sec. 117. (g) Gains and losses from short sales, etc. See p. 204, Eighth Edition. Sec. 117. (h) Determination of period for which held. See p. 206, Eighth Edition. Taxable Years Taxable Years Taxable Years exchange there shall be included exchange there shall be included exchange there shall be included the period for which he held the the period for which he held the the period for which he held the property exchanged, if under the property exchanged, if under the property exchanged, if under the provisions of section 113, the prop- provisions of section 113, the prop- provisions of section 113, the property received has, for the purpose erty received has, for the purpose erty received has, for the purpose of determining gain or loss from of determining gain or loss from of determining gain or loss from a sale or exchange, the same basis a sale or exchange, the same basis a sale or exchange, the same basis in whole or in part in his hands as in whole or in part in his hands as in whole or in part in his hands as the property exchanged. For the the property exchanged. For the the property exchanged. For the purposes of this paragraph, an in- purposes of this paragraph, an in- purposes of this paragraph, an involuntary conversion described in voluntary conversion described in voluntary conversion described in section 112 (f) shall be considered section 112 (f) shall be considered section 112 (f) shall be considered an exchange of the property con- an exchange of the property con- an exchange of the property converted for the property acquired. verted for the property acquired. verted for the property acquired. Sec. 117 (h) (1), I. R. C., supra, amended by Sec. 151 (c) (1), R. A. of 1942, to read as above. Sec. 151 (c) (2) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. For Sec. 117 (h) (1), I. R. C., before amendment, see 1942 column. Sec. 117 (h) (1), I. R. C., supra, amended by Sec. 151 (c) (1), R. A. of 1942, by adding language in italics. Sec. 151 (c) (2) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. Sec. 117 (h) (1), I. R. C., supra, amended by Sec. 151 (c) (1), R. A. of 1942, by adding language in italics. Sec. 151 (c) (2) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938. Sec. 117. (h) (2) In determin- Sec. 117. (h) (2) In determin- Sec. 117. (h) (2) In determining the period for which the tax-ing the period for which the tax-ing the period for which the taxpayer has held property however payer has held property however payer has held property however acquired there shall be included acquired there shall be included acquired there shall be included the period for which such property the period for which such property the period for which such property was held by any other person, if was held by any other person, if was held by any other person, if under the provisions of section under the provisions of section under the provisions of section 113, such property has, for the 113, such property has, for the 113, such property has, for the purpose of determining gain or purpose of determining gain or purpose of determining gain or loss from a sale or exchange, the loss from a sale or exchange, the loss from a sale or exchange, the same basis in whole or in part in same basis in whole or in part in his hands as it would have in the his hands as it would have in the hands of such other person. hands of such other person. same basis in whole or in part in his hands as it would have in the hands of such other person. Sec. 117. (h) (3) In determining Sec. 117. (h) (3) In determining Sec. 117. (h) (3) In determining the period for which the taxpayer the period for which the taxpayer the period for which the taxpayer has held stock or securities re- has held stock or securities re- has held stock or securities received upon a distribution where ceived upon a distribution where ceived upon a distribution where no gain was recognized to the dis- no gain was recognized to the dis- no gain was recognized to the distributee under the provisions of tributee under the provisions of tributee under the provisions of section 112 (g) of the Revenue section 112 (g) of the Revenue section 112 (g) of the Revenue Act of 1928, 45 Stat. 818, or the Act of 1928, 45 Stat. 818, or the Act of 1928, 45 Stat. 818, or the Revenue Act of 1932, 48 Stat. 705, Revenue Act of 1932, 48 Stat. 705, Revenue Act of 1932, 48 Stat. 705, or under the provisions of section or under the provisions of section or under the provisions of section 371 (c) of the Revenue Act of 371 (c) of the Revenue Act of 371 (c) of the Revenue Act of 1938 or this chapter, there shall 1938 or this chapter, there shall 1938 or this chapter, there shall be included the period for which be included the period for which be included the period for which he held the stock or securities in he held the stock or securities in he held the stock or securities in the distributing corporation prior the distributing corporation prior the distributing corporation prior to the receipt of the stock or se- to the receipt of the stock or se- to the receipt of the stock or se curities upon such distribution. curities upon such distribution. curities upon such distribution. Sec. 117. (h) (4) In determining Sec. 117. (h) (4) In determining Sec. 117. (h) (4) In determining the period for which the taxpayer the period for which the taxpayer the period for which the taxpayer has held stock or securities the has held stock or securities the has held stock or securities the acquisition of which (or the con- acquisition of which (or the con- acquisition of which (or the contract or option to acquire which) tract or option to acquire which) tract or option to acquire which) resulted in the nondeductibility resulted in the 'nondeductibility resulted in the nondeductibility (under section 118 of this chapter (under section 118 of this chapter (under section 118 of this chapter or section 118 of the Revenue Act or section 118 of the Revenue Act or section 118 of the Revenue Act of 1928, 45 Stat, 826, or the Rev- of 1928, 45 Stat. 826, or the Rev- of 1928, 45 Stat. 826, or the Rev exchange there shall be included exchange there shall be included the period for which he held the property exchanged, if under the provisions of section 113, the property received has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as the property exchanged. For the purposes of this paragraph, an involuntary conversion described in section 112 (f) shall be considered an exchange of the property converted for the property acquired. Sec. 117 (h) (1), I. R. C., supra, amended by Sec. 151 (c) (1), R. A. of 1942, by adding language in italics. Sec. 151 (c) (2) of said Act makes amendment applicable to taxable years beginning Dec. 31, 1938. the period for which he held the Sec. 117 (h) (1), I. R. C., Taxable Years Beginning before 1939 Sec. 117. (h) (2) In determin- Sec. 117. (h) (2) In determining the period for which the tax- ing the period for which the taxpayer has held property however payer has held property however acquired there shall be included acquired there shall be included the period for which such property the period for which such property was held by any other person, if was held by any other person, if under the provisions of section under the provisions of section 113, such property has, for the 113, such property has, for the purpose of determining gain or purpose of determining gain or loss from a sale or exchange, the loss from a sale or exchange, the same basis in whole or in part in his hands as it would have in the hands of such other person. same basis in whole or in part in Sec. 117. (h) (3) In determining Sec. 117. (h) (3) In determining the period for which the taxpayer the period for which the taxpayer has held stock or securities re- has held stock or securities received upon a distribution where ceived upon a distribution where no gain was recognized to the dis- no gain was recognized to the distributee under the provisions of tributee under the provisions of section 112 (g) of the Revenue section 112 (g) of the Revenue Act of 1928, 45 Stat. 818, or the Act of 1928, 45 Stat. 818, or the Revenue Act of 1932, 48 Stat. 705, Revenue Act of 1932, 48 Stat. 705, or under the provisions of section or under the provisions of section 371 (c) of the Revenue Act of 371 (c) of the Revenue Act of 1938 or this chapter, there shall 1938 or this chapter, there shall be included the period for which be included the period for which he held the stock or securities in he held the stock or securities in the distributing corporation prior the distributing corporation prior to the receipt of the stock or se- to the receipt of the stock or securities upon such distribution. curities upon such distribution. Sec. 117. (h) (4) In determining Sec. 117. (h) (4) In determining the period for which the taxpayer the period for which the taxpayer has held stock or securities the has held stock or securities the acquisition of which (or the con- acquisition of which (or the contract or option to acquire which) tract or option to acquire which) resulted in the nondeductibility resulted in the nondeductibility (under section 118 of this chapter or section 118 of the Revenue Act of 1928, 45 Stat. 826, or the Rev (under section 118 of this chapter Taxable Years enue Act of 1932, 47 Stat. 208, or the Revenue Act of 1934, 48 Stat. 715, or the Revenue Act of 1936, 49 Stat. 1692, or the Revenue Act of 1938, 52 Stat. 503, relating to wash sales) of the loss from the sale or other disposition of substantially identical stock or securities, there shall be included the period for which he held the stock or securities the loss from the sale or other disposition of which was not deductible. enue Act of 1932, 47 Stat. 208, or enue Act of 1932, 47 Stat. 208, or Sec. 117. (h) (5) In determin- Sec. 117. (h) (5) In determin- Sec. 117. (h) (5) In determining the period for which the tax-ing the period for which the tax-ing the period for which the taxpayer has held stock or rights to payer has held stock or rights to payer has held stock or rights to acquire stock received upon a dis-acquire stock received upon a dis- acquire stock received upon a distribution, if the basis of such stock tribution, if the basis of such stock tribution, if the basis of such stock or rights is determined under secor rights is determined under sec- or rights is determined under section 113 (a) (19) (A), there shall tion 113 (a) (19) (A), there shall tion 113 (a) (19) (A), there shall (under regulations prescribed by (under regulations prescribed by (under regulations prescribed by the Commissioner with the ap- the Commissioner with the ap- the Commissioner with the approval of the Secretary) be included proval of the Secretary) be included proval of the Secretary) be included the period for which he held the the period for which he held the the period for which he held the stock in the distributing corpora- stock in the distributing corpora- stock in the distributing corporation prior to the receipt of such tion prior to the receipt of such tion prior to the receipt of such stock or rights upon such distribu-stock or rights upon such distribu-stock or rights upon such distribu tion. Sec. 117 (h), I. R. C., Sec. 117. (h) (6) In determining Sec. 117. (h) (6) In determining the period for which the taxpayer the period for which the taxpayer has held stock or securities acquired has held stock or securities acquired from a corporation by the exercise from a corporation by the exercise of rights to acquire such stock or securities, there shall be included only the period beginning with the date upon which the right to acquire was exercised. Sec. 117 (h) (6), I. R. C., added to I. R. C. by Sec. 152, R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. of rights to acquire such stock or Sec. 117 (h) (6), I. R. C., added to I. R. C. by Sec. 152, R. A. of 1942. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. Sec. 117. (i) Bond, etc., losses of Sec. 117. (i) Bond, etc., losses of banks. For the purposes of this banks. For the purposes of this chapter, in the case of a bank, as chapter, in the case of a bank, as defined in section 104, if the losses defined in section 104, if the losses of the taxable year from sales or of the taxable year from sales or exchanges of bonds, debentures, exchanges of bonds, debentures, notes, or certificates, or other evi- notes, or certificates, or other evidence of indebtedness issued by any dence of indebtedness issued by any corporation (including one issued corporation (including one issued by a government or political subdi-by a government or political subdivision thereof) with interest cou- vision thereof) with interest coupons or in registered form, exceed pons or in registered form, exceed the gains of the taxable year from the gains of the taxable year from tion. enue Act of 1932, 47 Stat. 208, or enue Act of 1932, 47 Stat. 208, or the Revenue Act of 1934, 48 Stat. Sec. 117. (h) (5) In determin- Sec. 117. (h) (5) In determining the period for which the tax-ing the period for which the taxpayer has held stock or rights to payer has held stock or rights to acquire stock received upon a dis- acquire stock received upon a distribution, if the basis of such stock tribution, if the basis of such stock or rights is determined under sec- or rights is determined under section 113 (a) (19) (A), there shall tion 113 (a) (19) (A), there shall (under regulations prescribed by (under regulations prescribed by the Commissioner with the appro- the Commissioner with the approval val of the Secretary) be included of the Secretary) be included the the period for which he held the period for which he held the stock stock in the distributing corpora- in the distributing corporation tion prior to the receipt of such prior to the receipt of such stock stock or rights upon such distribu- or rights upon such distribution. tion. Taxable Years Beginning before 1939 |