26 U.S.C. § 1243 — Loss of small business investment company

submitted 68 years ago by Pub. L. 85-866 to r/title-26-INTERNAL-REVENUE-CODE · 78 words · no verdicts yet

in plain englishAI-generated · not legal advice

A qualifying loss by a small business investment company is treated as an ordinary loss instead of a capital loss.

If a small business investment company operating under the Small Business Investment Act of 1958 has a loss on stock received through the conversion privilege of convertible debentures acquired under section 304 of that Act, and the loss would otherwise be a loss from selling or exchanging a capital asset, the loss is treated as an ordinary loss.

the actual law source: uscode.house.gov ↗public domain

In the case of a small business investment company operating under the Small Business Investment Act of 1958, if—

(1)

a loss is on stock received pursuant to the conversion privilege of convertible debentures 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 an ordinary loss.

Source credit: (Added Pub. L. 85–866, title I, § 57(a), Sept. 2, 1958, 72 Stat. 1645; amended Pub. L. 91–172, title IV, § 433(b), Dec. 30, 1969, 83 Stat. 624; Pub. L. 94–455, title XIX, § 1901(b)(3)(F), Oct. 4, 1976, 90 Stat. 1793.)

history & why it existsrecord from the source credit

1958Enacted · Pub. L. 85-866 · 72 Stat. 1645
1969Amended · Pub. L. 91-172 · 83 Stat. 624
1976Amended · Pub. L. 94-455 · 90 Stat. 1793

A history note hasn’t been published yet. The record shows enactment by Pub. L. 85-866 on 1958-09-02.

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