Treasury Regulations (26 C.F.R.)
26 CFR § 1.475(a)-3
Acquisition by a dealer of a security with a substituted basis.
# (a) Scope.
This section applies if—
(1) A dealer in securities acquires a security that is subject to section 475(a) and the dealer's basis in the security is determined, in whole or in part, by reference to the basis of that security in the hands of the person from whom the security was acquired; or
(2) A dealer in securities acquires a security that is subject to section 475(a) and the dealer's basis in the security is determined, in whole or in part, by reference to other property held at any time by the dealer.
# (b) Rules.
If this section applies to a security—
(1) Section 475(a) applies only to changes in value of the security occurring after the acquisition; and
(2) Any built-in gain or loss with respect to the security (based on the difference between the fair market value of the security on the date the dealer acquired it and its basis to the dealer on that date) is taken into account at the time, and has the character, provided by the sections of the Internal Revenue Code that would apply to the built-in gain or loss if section 475(a) did not apply to the security.
[T.D. 8700, 61 FR 67720, Dec. 24, 1996]
Source: view the official text
In this part (40 sections)
- 1.471-2 · Valuation of inventories.
- 1.471-3 · Inventories at cost.
- 1.471-4 · Inventories at cost or market, whichever is lower.
- 1.471-5 · Inventories by dealers in securities.
- 1.471-6 · Inventories of livestock raisers and other farmers.
- 1.471-7 · Inventories of miners and manufacturers.
- 1.471-8 · Inventories of retail merchants.
- 1.471-9 · Inventories of acquiring corporations.
- 1.471-10 · Applicability of long-term contract methods.
- 1.471-11 · Inventories of manufacturers.
- 1.472-1 · Last-in, first-out inventories.
- 1.472-2 · Requirements incident to adoption and use of LIFO inventory…
- 1.472-3 · Time and manner of making election.
- 1.472-4 · Adjustments to be made by taxpayer.
- 1.472-5 · Revocation of election.
- 1.472-6 · Change from LIFO inventory method.
- 1.472-7 · Inventories of acquiring corporations.
- 1.472-8 · Dollar-value method of pricing LIFO inventories.
- 1.475-0 · Table of contents.
- 1.475(a)-1 - 1.475(a)-2 · §§ 1.475(a)-1-1.475(a)-2 [Reserved]
- 1.475(a)-3 · Acquisition by a dealer of a security with a substituted…
- 1.475(a)-4 · Valuation safe harbor.
- 1.475(b)-1 · Scope of exemptions from mark-to-market requirement.
- 1.475(b)-2 · Exemptions—identification requirements.
- 1.475(b)-3 · [Reserved]
- 1.475(c)-1 · Definitions—dealer in securities.
- 1.475(c)-2 · Definitions—security.
- 1.475(d)-1 · Character of gain or loss.
- 1.475(g)-1 · Effective dates.
- 1.481-1 · Adjustments in general.
- 1.481-2 · Limitation on tax.
- 1.481-3 · Adjustments attributable to pre-1954 years where change was…
- 1.481-4 · Adjustments taken into account with consent.
- 1.481-5 · Eligible terminated S corporation.
- 1.481-6 · Effective dates; applicability dates.
- 1.482-0 · Outline of regulations under section 482.
- 1.482-1 · Allocation of income and deductions among taxpayers.
- 1.482-1T · Allocation of income and deductions among taxpayers…
- 1.482-2 · Determination of taxable income in specific situations.
- 1.482-3 · Methods to determine taxable income in connection with a…