Page:United States Statutes at Large Volume 53 Part 1.djvu/64

 52 CODIFICATION OF INTERNAL REVENUE LAWS (d) LIMITATION ON CAPITAL LOSSES.- (1) CORPORATIONS.-In the case of a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of $2,000 plus the gains from such sales or exchanges. If a bank or trust company incorporated under the laws of the United States (including laws relating to the District of Colum- bia) or of any State or Territory, a substantial part of whose business is the receipt of deposits, sells any bond, debenture, note, or certificate or other evidence of indebtedness issued by any corporation (including one issued by a government or political subdivision thereof), with interest coupons or in registered form, any loss resulting from such sale (except such portion of the loss as does not exceed the amount, if any, by which the adjusted basis of such instrument exceeds the par or face value thereof) shall not be subject to the foregoing limitation and shall not be included in determining the applicability of such limitation to other losses. (2) OTrHE TAXPAYERS. - In the case of a taxpayer other than a corporation, short-term capital losses shall be allowed only to the extent of short-term capital gains. (e) NET SHORT-TERM CAPITAL Loss CARRY-OVER.- If any taxpayer (other than a corporation) sustains in any taxable year begnninng after December 31, 1937, a net short-term capital loss, such loss (in an amount not in excess of the net income for such year) shall be treated in the succeeding taxable year as a short-term capital loss, except that it shall not be included in computing the net short-term capital loss for such year. (f) RETIREMENT OF BONDS, ETC.- For the purposes of this chapter, amounts received by the holder upon the retirement of bonds, deben- tures, notes, or certificates or other evidences of indebtedness issued by any corporation (including those issued by a government or political subdivision thereof), with interest coupons or in registered form, shall be considered as amounts received in exchange therefor. (g) GAINS AND LOSSES FROM SHORT SALES, ETC.- For the purpose of this chapter- (1) gains or losses from short sales of property shall be con- sidered as gains or losses from sales or exchanges of capital assets; and (2) gains or losses attributable to the failure to exercise privi- leges or options to buy or sell property shall be considered as short-term capital gains or losses. (h) DETERMINATION OF PERIOD FOR WIIICII HELD.- For the purpose of this section- (1) In determining the period for which the taxpayer has held property received on an exchange there shall be included the period for which he held the property exchanged, if under the provisions of section 113, the property received has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as the property exchanged. (2) In determining the period for which the taxpayer has held property however acquired there shall be included the period for which such property was held by any other person, if under the provisions of section 113, such property has, for the purpose of determining gain or loss from a sale or exchange, the same basis in whole or in part in his hands as it would have in the hands of such other person. (3) In determining the period for which the taxpayer has held stock or securities received upon a distribution where no gain was recognized to the distributee under the provisions of section 112 (g) of the Revenue Act of 1928, 45 Stat. 818, or the Revenue Act of 1932, 48 Stat. 705, or under the provisions of section 371 (c) of the Revenue Act of 1938 or this chapter, there shall be included the

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