26 U.S.C. § 1243
§ 1243. Loss of small business investment company
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1958 by the Public Law 85-866. Last changed October 4, 1976 by the Tax Reform Act of 1976.
Every change, newest first (3)
- October 4, 1976Tax Reform Act of 1976
- December 30, 1969Tax Reform Act of 1969
- September 2, 1958Public Law 85-866 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
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.