Internal Revenue Code (Title 26 U.S.C.)

26 U.S.C. § 1234A

Gains or losses from certain terminations

Official textgovinfo.govlast amended

Gain or loss attributable to the cancellation, lapse, expiration, or other termination of—

# (1)

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

# (2)

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).

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