Notes on 26 U.S.C. § 582 : US Code - Notes

Search Notes on 26 U.S.C. § 582 : US Code - Notes

(Aug. 16, 1954, ch. 736, 68A Stat. 202; Pub. L. 85-866, title I,
Sec. 34, Sept. 2, 1958, 72 Stat. 1632; Pub. L. 91-172, title IV,
Sec. 433(a), (c), Dec. 30, 1969, 83 Stat. 623, 624; Pub. L. 94-455,
title X, Sec. 1044(a), title XIV, Sec. 1402(b)(1)(G), (2), Oct. 4,
1976, 90 Stat. 1642, 1732; Pub. L. 98-369, div. A, title X, Sec.
1001(b)(6), (e), July 18, 1984, 98 Stat. 1011, 1012; Pub. L. 99-
514, title VI, Sec. 671(b)(4), title IX, Sec. 901(d)(3), Oct. 22,
1986, 100 Stat. 2318, 2379; Pub. L. 100-647, title I, Sec.
1008(d)(3), Nov. 10, 1988, 102 Stat. 3439; Pub. L. 101-508, title
XI, Sec. 11801(a)(25), (c)(11), Nov. 5, 1990, 104 Stat. 1388-521,
1388-527; Pub. L. 104-188, title I, Sec. 1621(b)(4), Aug. 20, 1996,
110 Stat. 1867; Pub. L. 108-357, title VIII, Sec. 835(b)(3), Oct.
22, 2004, 118 Stat. 1593.)
REFERENCES IN TEXT
The Small Business Investment Act of 1958, referred to in subsec.
(c)(2)(A)(iii), is Pub. L. 85-699, Aug. 21, 1958, 72 Stat. 689, as
amended, which is classified principally to chapter 14B (Sec. 661
et seq.) of Title 15, Commerce and Trade. For complete
classification of this Act to the Code, see Short Title note set
out under section 661 of Title 15 and Tables.
AMENDMENTS
2004 - Subsec. (c)(1). Pub. L. 108-357 struck out ", and any
regular interest in a FASIT," before "shall be treated".
1996 - Subsec. (c)(1). Pub. L. 104-188 inserted ", and any
regular interest in a FASIT," after "REMIC".
1990 - Subsec. (c)(1). Pub. L. 101-508, Sec. 11801(c)(11)(A),
substituted "paragraph (2)" for "paragraph (5)".
Subsec. (c)(2). Pub. L. 101-508, Sec. 11801(a)(25), (c)(11)(B),
redesignated par. (5) as (2) and struck out former par. (2)
"Transitional rule for banks" which read as follows: "In the case
of a bank, if the net long-term capital gains of the taxable year
from sales or exchanges of qualifying securities exceed the net
short-term capital losses of the taxable year from such sales or
exchanges, such excess shall be considered as gain from the sale of
a capital asset held for more than 6 months to the extent it does
not exceed the net gain on sales and exchanges described in
paragraph (1)."
Subsec. (c)(3). Pub. L. 101-508, Sec. 11801(a)(25), struck out
par. (3) "Special rules" which read as follows: "For purposes of
this subsection -
"(A) The term 'qualifying security' means a bond, debenture,
note, or certificate or other evidence of indebtedness held by a
bank on July 11, 1969.
"(B) The amount treated as capital gain or loss from the sale
or exchange of a qualifying security shall be determined by
multiplying the amount of capital gain or loss from the sale or
exchange of such security (determined without regard to this
subsection) by a fraction, the numerator of which is the number
of days before July 12, 1969, that such security was held by the
bank, and the denominator of which is the number of days the
security was held by the bank."
Subsec. (c)(4). Pub. L. 101-508, Sec. 11801(a)(25), struck out
par. (4) "Transitional rule for banks" which read as follows: "In
the case of a corporation which would be a bank except for the fact
that it is a foreign corporation, the net gain, if any, for the
taxable year on sales and exchanges described in paragraph (1)
shall be considered as gain from the sale or exchange of a capital
asset to the extent such net gain does not exceed the portion of
any capital loss carryover to such taxable year which is
attributable to capital losses on sales or exchanges described in
paragraph (1) for a taxable year beginning before July 12, 1969.
For purposes of the preceding sentence, the portion of a net
capital loss for a taxable year which is attributable to capital
losses on sales or exchanges described in paragraph (1) is the
amount of the net capital loss on such sales or exchanges for such
taxable year (but not in excess of the net capital loss for such
taxable year)."
Subsec. (c)(5). Pub. L. 101-508, Sec. 11801(c)(11)(B),
redesignated par. (5) as (2).
1988 - Subsec. (a). Pub. L. 100-647 substituted "subsections (a)
and (b) of section 166" for "subsections (a), (b), and (c) of
section 166".
1986 - Subsec. (c)(1). Pub. L. 99-514, Sec. 901(d)(3)(A),
substituted "referred to in paragraph (5)" for "to which section
585, 586, or 593 applies".
Pub. L. 99-514, Sec. 671(b)(4), inserted "For purposes of the
preceding sentence, any regular or residual interest in a REMIC
shall be treated as an evidence of indebtedness."
Subsec. (c)(5). Pub. L. 99-514, Sec. 901(d)(3)(B), added par.
(5).
1984 - Subsec. (c)(2). Pub. L. 98-369 substituted "6 months" for
"1 year", applicable to property acquired after June 22, 1984, and
before Jan. 1, 1988. See Effective Date of 1984 Amendment note
below.
1976 - Subsec. (c)(2). Pub. L. 94-455, Sec. 1402(b)(2), provided
that "9 months" would be changed to "1 year".
Pub. L. 94-455, Sec. 1402(b)(1)(G), (2), provided that "6 months"
would be changed to "9 months" for taxable years beginning in 1977.
Subsec. (c)(4). Pub. L. 94-455, Sec. 1044(a), added par. (4).
1969 - Pub. L. 91-172, Sec. 433(c), substituted "Bad debts,
losses, and gains with respect to securities held by financial
institutions" for "Bad debt and loss deduction with respect to
securities held by banks" in section catchline.
Subsec. (c). Pub. L. 91-172, Sec. 433(a), redesignated existing
provisions as par. (1), inserted reference to sections 585, 586 and
593, and added pars. (2) and (3).
1958 - Subsec. (c). Pub. L. 85-866 struck out "with interest
coupons or in registered form," before "exceed the gains".
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-357 effective Jan. 1, 2005, with
exception for any FASIT in existence on Oct. 22, 2004, to the
extent that regular interests issued by the FASIT before such date
continue to remain outstanding in accordance with the original
terms of issuance, see section 835(c) of Pub. L. 108-357, set out
as a note under section 56 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective Sept. 1, 1997, see section
1621(d) of Pub. L. 104-188, set out as a note under section 26 of
this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 671(b)(4) of Pub. L. 99-514 effective Jan.
1, 1987, see section 675(a) of Pub. L. 99-514, as amended, set out
as an Effective Date note under section 860A of this title.
Amendment by section 901(d)(3) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 901(e) of
Pub. L. 99-514, set out as a note under section 166 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to property acquired after
June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub.
L. 98-369, set out as a note under section 166 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1044(b) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) The amendment made by subsection (a) [amending this section]
shall apply with respect to taxable years beginning after July 11,
1969.
"(2) If the refund or credit of any overpayment attributable to
the application of the amendment made by subsection (a) to any
taxable year is otherwise prevented by the operation of any law or
rule of law (other than section 7122 of the Internal Revenue Code
of 1986 [formerly I.R.C. 1954], relating to compromises) on the day
which is one year after the date of the enactment of this Act [Oct.
4, 1976], such credit or refund shall be nevertheless allowed or
made if claim therefor is filed on or before such day."
Section 1402(b)(1) of Pub. L. 94-455 provided that amendment made
by that section is effective with respect to taxable years
beginning in 1977.
Section 1402(b)(2) of Pub. L. 94-455 provided that the amendment
made by that section is effective with respect to taxable years
beginning after Dec. 31, 1977.
EFFECTIVE DATE OF 1969 AMENDMENT
Section 433(d) of Pub. L. 91-172, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - The amendments made by this section [amending
this section and section 1243 of this title] shall apply to taxable
years beginning after July 11, 1969.
"(2) Election for small business investment companies and
business development corporations. - Notwithstanding paragraph (1),
in the case of a financial institution described in section 586(a)
of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the
amendments made by this section [amending this section and section
1243 of this title] shall not apply for its taxable years beginning
after July 11, 1969, and before July 11, 1974, unless the taxpayer
so elects at such time and in such manner as shall be prescribed by
the Secretary of the Treasury or his delegate. Such election shall
be irrevocable and shall apply to all such taxable years."
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 applicable to taxable years beginning
after Dec. 31, 1953, and ending after Aug. 16, 1954, see section
1(c)(1) of Pub. L. 85-866, set out as a note under section 165 of
this title.
SAVINGS PROVISION
For provisions that nothing in amendment by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 45K of this title.