Title 26 — Internal Revenue CodeRelease 119-73
§1242 Losses on small business investment company stock
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter P— - Capital Gains and Losses › Part PART IV— - SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES › § 1242
Full Legal Text
Title 26, §1242
Internal Revenue Code — Source: USLM XML via OLRC
If—
(1)a loss is on stock in a small business investment company operating under the Small Business Investment Act of 1958, and
(2)such loss would (but for this section) be a loss from the sale or exchange of a capital asset,
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Small Business Investment Act of 1958, referred to in cl. (1), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689, which is classified principally to chapter 14B (§ 661 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see
Short Title
note set out under section 661 of Title 15 and Tables.
Amendments
1976—Pub. L. 94–455 substituted “an ordinary loss” for “a loss from the sale or exchange of property which is not a capital asset”, each time appearing.
Statutory Notes and Related Subsidiaries
Effective Date
of 1976 AmendmentAmendment by Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Effective Date
Section applicable with respect to taxable years beginning after Sept. 2, 1958, see section 57(d) of Pub. L. 85–866, set out as an
Effective Date
of 1958 Amendment note under section 243 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 1242
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73