§1236. Dealers in securities — Inbound Citations
26 U.S.C. § 1236
Cited by 5 provisions in release 119-102.
Citations to 26 U.S.C. § 1236 as a whole
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(A) In the case of a taxpayer who is a dealer in securities (within the meaning of section 1236)—(i) if, on the date of a short sale of stock, substantially identical property which is a capital asset in the hands of the taxpayer has been held for not more than 1 year, and(ii) if such short sale is closed more than 20 days after the date on which it was made,subsection (b)(2) shall apply in respect of the holding period of such substantially identical property.
Citations to §1236(b)
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(A) Except as provided in subparagraph (B) or section 1236(b)—(i) Any gain or loss with respect to a security under subsection (a)(2) shall be treated as ordinary income or loss.(ii) If—(I) gain or loss is recognized with respect to a security before the close of the taxable year, and(II) subsection (a)(2) would have applied if the security were held as of the close of the taxable year,such gain or loss shall be treated as ordinary income or loss.
Citations to §1236(c)
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(A) The term “payments with respect to securities loans” includes all amounts received in respect of a security (as defined in section 1236(c)) transferred by the owner to another person in a transaction to which section 1058 applies (whether or not title to the security remains in the name of the lender) including—(ii) fees computed by reference to the period beginning with the transfer of securities by the owner and ending with the transfer of identical securities back to the transferor by the transferee and the fair market value of the security during such period,(iii) income from collateral security for such loan, and(iv) income from the investment of collateral security.
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(5) There shall be excluded all gains or losses from the sale, exchange, or other disposition of property other than—(A) stock in trade or other property of a kind which would properly be includible in inventory if on hand at the close of the taxable year, or(B) property held primarily for sale to customers in the ordinary course of the trade or business.There shall also be excluded all gains or losses recognized, in connection with the organization’s investment activities, from the lapse or termination of options to buy or sell securities (as defined in section 1236(c)) or real property and all gains or losses from the forfeiture of good-faith deposits (that are consistent with established business practice) for the purchase, sale, or lease of real property in connection with the organization’s investment activities. This paragraph shall not apply with respect to the cutting of timber which is considered, on the application of section 631, as a sale or exchange of such timber.
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(a) In the case of a taxpayer who transfers securities (as defined in section 1236(c)) pursuant to an agreement which meets the requirements of subsection (b), no gain or loss shall be recognized on the exchange of such securities by the taxpayer for an obligation under such agreement, or on the exchange of rights under such agreement by that taxpayer for securities identical to the securities transferred by that taxpayer.