§453B Gain or loss on disposition of installment obligations

Provisions similar to those comprising this section were contained in former section 453 of this title.

2018—Pub. L. 115–141 substituted “loss on disposition” for “loss disposition” in section catchline. 2017—Subsec. (e)(2)(B). Pub. L. 115–97, § 13512(b)(1)(A), struck out “(as defined in section 806(b)(3))” before period at end. Subsec. (e)(3). Pub. L. 115–97, § 13512(b)(1)(B), added par. (3). 1990—Subsec. (d). Pub. L. 101–508 substituted heading for one which read: “Effect of distribution in liquidations to which section 332 applies” and amended text generally. Prior to amendment, text read as follows: “If— “(1) an installment obligation is distributed in a liquidation to which section 332 (relating to complete liquidations of subsidiaries) applies, and “(2) the basis of such obligation in the hands of the distributee is determined under section 334(b)(1), then no gain or loss with respect to the distribution of such obligation shall be recognized by the distributing corporation.” 1988—Subsec. (h). Pub. L. 100–647 added subsec. (h). 1986—Subsec. (d). Pub. L. 99–514, § 631(e)(9), amended subsec. (d) generally, substituting “liquidations to which section 332 applies” for “certain liquidations” in heading, striking out par. (1) designation, redesignating subpars. (A) and (B) as pars. (1) and (2), and striking out former par. (2) relating to liquidations to which section 337 applies. Subsec. (e)(2)(B). Pub. L. 99–514, § 1011(b)(1), substituted “section 806(b)(3)” for “section 806(c)(3)”. Subsec. (g). Pub. L. 99–514, § 1842(c), inserted “(other than a transfer in trust)”. 1984—Subsec. (d)(2). Pub. L. 98–369, § 492(b)(3), struck out “1251(c),” after “1250(a),” in provision following subpar. (B). Pub. L. 98–369, § 43(c)(2), substituted “1254(a), or 1276(a)” for “or 1254(a)”. Subsec. (e)(1). Pub. L. 98–369, § 211(b)(6)(A), substituted “section 816(a)” for “section 801(a)”. Subsec. (e)(2). Pub. L. 98–369, § 211(b)(6)(B), substituted “as not related to insurance business” for “as investment income” in heading, and in text substituted “as if such income were an item attributable to a noninsurance business (as defined in section 806(c)(3))” for “if such income would not otherwise be returnable as an item referred to in section 804(b) or as long-term capital gain, as if the income on such obligations were income specified in section 804(b)”. Subsec. (g). Pub. L. 98–369, § 421(b)(3), added subsec. (g). 1983—Subsec. (d)(2). Pub. L. 97–448 substituted “under subsection (a)” for “under paragraph (1)” in second sentence. 1980—Subsec. (d). Pub. L. 96–471, § 2(c)(3), inserted last sentence providing that in the case of any installment obligation which would have met the requirements of subpars. (A) and (B) of par. (2) but for section 337(f), gain shall be recognized to such corporation by reason of such distribution only to the extent gain would have been recognized under section 337(f) if such corporation had sold or exchanged such installment obligation on the date of such distribution.

of 2017 Amendment Pub. L. 115–97, title I, § 13512(c), Dec. 22, 2017, 131 Stat. 2143, provided that: “The

made by this section [amending this section and section 465, 801, 804, 805, 842, and 953 of this title and repealing section 806 of this title] shall apply to taxable years beginning after December 31, 2017.”

of 1990 AmendmentAmendment by Pub. L. 101–508 effective as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 11702(j) of Pub. L. 101–508, set out as a note under section 59 of this title.

of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

of 1986 AmendmentAmendment by section 631(e)(9) of Pub. L. 99–514 applicable to any distribution in complete liquidation, and any sale or exchange, made by a corporation after July 31, 1986, unless such corporation is completely liquidated before Jan. 1, 1987, any transaction described in section 338 of this title for which the acquisition date occurs after Dec. 31, 1986, and any distribution, not in complete liquidation, made after Dec. 31, 1986, with exceptions and special and transitional rules, see section 633 of Pub. L. 99–514, set out as an

note under section 336 of this title. Pub. L. 99–514, title X, § 1011(c)(1), Oct. 22, 1986, 100 Stat. 2389, provided that: “The

made by this section [amending this section and section 465, 801, 804 to 806, 813, and 815 of this title, enacting provisions set out as a note under section 801 of this title, and amending provisions set out as a note under section 806 of this title] shall apply to taxable years beginning after December 31, 1986.” Amendment by section 1842(c) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.

of 1984 AmendmentAmendment by section 43(c)(2) of Pub. L. 98–369 applicable to taxable years ending after July 18, 1984, see section 44 of Pub. L. 98–369, set out as an

note under section 1271 of this title. Amendment by section 211(b)(6) of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an

note under section 801 of this title. Amendment by section 421(b)(3) of Pub. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an

note under section 1041 of this title. Amendment by section 492(b)(3) of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 492(d) of Pub. L. 98–369, set out as a note under section 170 of this title.

of 1983 AmendmentAmendment by Pub. L. 97–448 applicable to dispositions made after Oct. 19, 1980, in taxable years ending after such date, see section 311(a) of Pub. L. 97–448, set out as a note under section 453 of this title.

of 1980 AmendmentFor

of amendment by Pub. L. 96–471, see section 6(a)(6) of Pub. L. 96–471, set out as an

note under section 453 of this title.

For

, see section 6(a)(1), (5) of Pub. L. 96–471, set out as a note under section 453 of this title. Repeal of Modification of Installment Method Pub. L. 106–573, § 2, Dec. 28, 2000, 114 Stat. 3061, provided that: “(a) In General.—Subsection (a) of section 536 of the Ticket to Work and Work Incentives Improvement Act of 1999 (relating to modification of installment method and repeal of installment method for accrual method taxpayers) [Pub. L. 106–170, amending this section] is repealed effective with respect to sales and other dispositions occurring on or after the date of the enactment of such Act [Dec. 17, 1999]. “(b) Applicability.—The Internal Revenue Code of 1986 shall be applied and administered as if that subsection (and the

made by that subsection) had not been enacted.” Plan

Not Required Until January 1, 1989For provisions directing that if any