26 U.S.C. § 1058
Transfers of securities under certain agreements
# (a) General rule
In the case of a taxpayer who transfers securities (as defined in section 1236(c)) pursuant to an agreement which meets the requirements of subsection (b), no gain or loss shall be recognized on the exchange of such securities by the taxpayer for an obligation under such agreement, or on the exchange of rights under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer.
# (b) Agreement requirements
In order to meet the requirements of this subsection, an agreement shall— (1) provide for the return to the transferor of securities identical to the securities transferred; (2) require that payments shall be made to the transferor of amounts equivalent to all interest, dividends, and other distributions which the owner of the securities is entitled to receive during the period beginning with the transfer of the securities by the transferor and ending with the transfer of identical securities back to the transferor; (3) not reduce the risk of loss or opportunity for gain of the transferor of the securities in the securities transferred; and (4) meet such other requirements as the Secretary may by regulation prescribe.
# (c) Basis
Property acquired by a taxpayer described in subsection (a), in a transaction described in that subsection, shall have the same basis as the property transferred by that taxpayer.
Source: view the official text
Cited by 12
- 26 CFR § 1.1473-1 — Section 1473 definitions.
- 26 CFR § 1.1474-6 — Coordination of chapter 4 with other withholding provisions.
- 26 CFR § 1.382-2T — Definition of ownership change under section 382, as amended by the Tax Reform Act of 1986 (temporary).
- 26 CFR § 1.861-2 — Interest.
- 26 CFR § 1.861-3 — Dividends and income inclusions under sections 951, 951A, and 1293 and associated section 78 dividends.
- 26 CFR § 1.892-3T — Income of foreign governments (temporary regulations).
- 26 CFR § 1.892-4 — Commercial activities.
- 26 CFR § 1.892-5T — Controlled commercial entity (temporary regulations).
- 26 CFR § 1.954-2 — Foreign personal holding company income.
- 26 CFR § 4.954-2 — Foreign personal holding company income; taxable years beginning after December 31, 1986.
- 26 U.S.C. § 512 — Unrelated business taxable income
- 26 U.S.C. § 954 — Foreign base company income
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