Page:United States Statutes at Large Volume 68A.djvu/349

 CH. 1—NORMAL TAXES AND SURTAXES

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' (2) CROSS REFERENCE.—

For treatment of residences involuntarily converted after December 31, 1953, see section 1033 (relating to involuntary conversions). (j) STATUTE OF LIMITATIONS.—If after December 31, 1950, the taxpayer during a taxable year sells a t a gain property used by him as his principal residence, then— (1) the statutory period for the assessment of any deficiency attributable to any part of such gain shall not expire before the expiration of 3 years from the date the Secretary or his delegate is notified by the taxpayer (in such manner as the Secretary or his delegate may by regulations prescribe) of— (A) the taxpayer's cost of purchasing the new residence which the taxpayer claims results in nonrecognition of any part of such (B) the taxpayer's mtention not to purchase a new residence within the period specified in subsection (a),- or (C) a failure to make such purchase within such period; and (2) such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment. SEC. 1035. CERTAIN EXCHANGES OF INSURANCE POLICIES. (a) GENERAL RULES. — N o gain or loss shall be recognized on the

exchange of— (1) a contract of life insurance for another contract of life insurance or for an endowment or annuity contract; or (2) a contract of endowment insurance (A) for another contract of endowment insurance which provides for regular payments beginning a t a date not later than the date payments would have begun under the contract exchanged, or (B) for an annuity contract; or (3) an annuity contract for an annuity contract. (b) DEFINITIONS.—For the purpose of this section— (1) ENDOWMENT CONTRACT.—A contract of endowment insurance is a contract with a life insurance company as defined in section 801 which depends in part on the life expectancy of the insured, b u t which may be payable in fuU in a single payment during his life. (2) ANNUITY CONTRACT.—An annuity contract is a contract to

which paragraph (1) applies b u t which may be payable during the life of the annuitant only in installments. (3) L I F E INSURANCE CONTRACT.—A contract of life insurance is a contract to which paragraph (1) applies b u t which is not ordinarily payable in full during the life of the insured. (c) CROSS R E F E R E N C E S. — (1) For rules relating to recognition of gain or loss where an exchange is not solely in kind, see subsections (b) and (c) of section 1031. (2) For rules relating to the basis of property acquired in an exchange described in subsection (a), see subsection (d) of section 1031. SEC. 1036. STOCK FOR STOCK OF SAME CORPORATION. (a) GENERAL RULE. — N o gain or loss shall be recognized if common

stock in a corporation is exchanged solely for common stock in the same corporation, or if preferred stock in a corporation is exchanged solely for preferred stock in the same corporation. § 1036(a)

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