Page:United States Statutes at Large Volume 68A.djvu/359

 CH. 1—NORMAL TAXES AND SURTAXES

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PART VII—WASH SALES OF STOCK OR SECURITIES Sec. 1091. Loss from wash sales of stock or securities. SEC. 1091. LOSS FROM WASH SALES OF STOCK OR SECURITIES. (a) DISALLOWANCE OF LOSS DEDUCTION. — I n the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction for the loss shall be allowed under section 165(c)(2); nor shall such deduction be allowed a corporation under section 165(a) unless it is a dealer in stocks or securities, and the loss is sustained in a transaction made in the ordinary course of its business. (b) STOCK ACQUIRED L E S S T H A N STOCK SOLD.—If the amount of stock or securities acquired (or covered by the contract or option to acquire) is less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under regulations prescribed by the Secretary or his delegate. (c) STOCK ACQUIRED N O T L E S S T H A N STOCK SOLD.—If the amount of stock or securities acquired (or covered by the contract or option to acquire) is not less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility of the loss shall be determined under regulations prescribed by the Secretary or his delegate. (d) UNADJUSTED B A S I S IN C A S E OP W A S H SALE OF STOCK.—If the

property consists of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility (under this section or corresponding provisions of prior internal revenue laws) of the loss from the sale or other disposition of substantially identical stock or securities, then the basis shall be the basis of the stock or securities so sold or disposed of, increased or decreased, as the case may be, by the difference, if any, between the price at which the property was acquired and the price at which such substantially identical stock or securities were sold or otherwise disposed of. it 9in.

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§ 1091(d)

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