26 U.S.C. § 1234A
§ 1234A. Gains or losses from certain terminations
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1981 by the Economic Recovery Tax Act of 1981. Last changed March 9, 2002 by the Public Law 107-147.
Every change, newest first (6)
- March 9, 2002Public Law 107-147
- December 21, 2000Public Law 106-554
- August 5, 1997Taxpayer Relief Act of 1997
- July 18, 1984Deficit Reduction Act of 1984
- January 12, 1983Public Law 97-448
- August 13, 1981Economic Recovery Tax Act of 1981 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Gain or loss attributable to the cancellation, lapse, expiration, or other termination of—
a right or obligation (other than a securities futures contract, as defined in section 1234B) with respect to property which is (or on acquisition would be) a capital asset in the hands of the taxpayer, or
a section 1256 contract (as defined in section 1256) not described in paragraph (1) which is a capital asset in the hands of the taxpayer,
shall be treated as gain or loss from the sale of a capital asset. The preceding sentence shall not apply to the retirement of any debt instrument (whether or not through a trust or other participation arrangement).