---
kind: "section"
citation: "26 U.S.C. § 1287"
title: "26"
title_heading: "Internal Revenue Code"
number: "1287"
heading: "Denial of capital gain treatment for gains on certain obligations not in registered form"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1287"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter P — Capital Gains and Losses"
  - "Part V — Special Rules for Bonds and Other Debt Instruments"
  - "Subpart D — Miscellaneous Provisions"
---

# §1287. Denial of capital gain treatment for gains on certain obligations not in registered form

- (a) **In general—** If any registration-required obligation is not in registered form, any gain on the sale or other [disposition](/usc/26/424.md?p=c-1) of such obligation shall be treated as ordinary income (unless the issuance of such obligation was subject to tax under [section 4701](/usc/26/4701.md)).
- (b) **Definitions—** For purposes of [subsection (a)](#a)—
  - (1) **Registration-required obligation—** The term “registration-required obligation” has the meaning given to such term by [section 163(f)(2)](/usc/26/163.md?p=f-2).
  - (2) **Registered form—** The term “registered form” has the same meaning as when used in [section 163(f)](/usc/26/163.md?p=f).

## Source credit

(Added Pub. L. 98–369, div. A, title I, § 41(a), July 18, 1984, 98 Stat. 552; amended Pub. L. 111–147, title V, § 502(a)(2)(D), Mar. 18, 2010, 124 Stat. 107.)

## Notes

### Editorial Notes

### Amendments

2010—Subsec. (b)(1). Pub. L. 111–147 struck out “except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall not apply” before period.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–147 applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, see section 502(f) of Pub. L. 111–147, set out as a note under section 149 of this title.

### Effective Date

Section applicable to taxable years ending after July 18, 1984, except as otherwise provided, see section 44 of Pub. L. 98–369, set out as a note under section 1271 of this title.