Title 26, Internal Revenue CodeRelease 119-102
§1054 Certain Stock of Federal National Mortgage Association
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter O — Gain or Loss on Disposition of Property › PART IV — SPECIAL RULES › § 1054
Summary
If a stock share is issued under the Federal National Mortgage Association’s charter, the first owner’s tax basis in that share is the amount of money they put in for it. That basis must be reduced by any part that section 162(d) says must be treated as an ordinary and necessary business expense.
Full Legal Text
Title 26, §1054
Internal Revenue Code, Source: USLM XML via OLRC
In the case of a share of stock issued pursuant to section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., sec. 1718), the basis of such share in the hands of the initial holder shall be an amount equal to the capital contributions evidenced by such share reduced by the amount (if any) required by section 162(d) to be treated (with respect to such share) as ordinary and necessary expenses paid or incurred in carrying on a trade or business.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 1054 was renumbered section 1063 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable with respect to taxable years beginning after Dec. 31, 1959, see section 8(d) of Pub. L. 86–779, set out as an
Effective Date
of 1960 Amendment note under section 162 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 1054
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102