---
kind: "section"
citation: "26 U.S.C. § 1058"
title: "26"
title_heading: "Internal Revenue Code"
number: "1058"
heading: "Transfers of securities under certain agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1058"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter O — Gain or Loss on Disposition of Property"
  - "Part IV — Special Rules"
---

# §1058. Transfers of securities under certain agreements

- (a) **General rule—** In the case of a [taxpayer](/usc/26/1313.md?p=b) who transfers [securities](/usc/26/368.md?p=a-2-F-vii) (as defined in [section 1236(c)](/usc/26/1236.md?p=c)) pursuant to an agreement which meets the requirements of [subsection (b)](#b), no gain or loss shall be recognized on the exchange of such [securities](/usc/26/368.md?p=a-2-F-vii) by the [taxpayer](/usc/26/1313.md?p=b) for an obligation under such agreement, or on the exchange of rights under such agreement by that [taxpayer](/usc/26/1313.md?p=b) for [securities](/usc/26/368.md?p=a-2-F-vii) identical to the [securities](/usc/26/368.md?p=a-2-F-vii) transferred by that [taxpayer](/usc/26/1313.md?p=b).
- (b) **Agreement requirements—** In order to meet the requirements of this subsection, an agreement shall—
  - (1) provide for the return to the transferor of [securities](/usc/26/368.md?p=a-2-F-vii) identical to the [securities](/usc/26/368.md?p=a-2-F-vii) transferred;
  - (2) require that payments shall be made to the transferor of amounts equivalent to all [interest](/usc/26/856.md?p=f-1), [dividends](/usc/26/316.md?p=a), and other distributions which the owner of the [securities](/usc/26/368.md?p=a-2-F-vii) is entitled to receive during the period beginning with the transfer of the [securities](/usc/26/368.md?p=a-2-F-vii) by the transferor and ending with the transfer of identical [securities](/usc/26/368.md?p=a-2-F-vii) back to the transferor;
  - (3) not reduce the risk of loss or opportunity for gain of the transferor of the [securities](/usc/26/368.md?p=a-2-F-vii) in the [securities](/usc/26/368.md?p=a-2-F-vii) transferred; and
  - (4) meet such other requirements as the Secretary may by regulation prescribe.
- (c) **Basis—** [Property](/usc/26/317.md?p=a) acquired by a [taxpayer](/usc/26/1313.md?p=b) described in [subsection (a)](#a), in a transaction described in that subsection, shall have the same basis as the [property](/usc/26/317.md?p=a) transferred by that [taxpayer](/usc/26/1313.md?p=b).

## Source credit

(Added Pub. L. 95–345, § 2(d)(1), Aug. 15, 1978, 92 Stat. 482.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1058 was renumbered section 1063 of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable with respect to amounts received after Dec. 31, 1976, as payments with respect to securities loans (as defined in section 512(a)(5) of this title), and transfers of securities, under agreements described in this section, occurring after such date, see section 2(e) of Pub. L. 95–345, set out as an Effective Date of 1978 Amendment note under section 509 of this title.