Page 648

TITLE 26-INTERNAL REVENUE CODE (C) Outdoor advertising display For purposes of this paragraph, the term "outdoor advertising display" means a rigid- ly assembled sign, display, or device perma- nently affixed to the ground or permanent- ly attached to a building or other inherent- ly permanent structure constituting, or used for the display of, a commercial or other advertisement to the public. (D) Character of replacement properey For purposes of this subsection, an Inter- est in real property purchased as replace- ment property for a compulsorily or invol- untarily converted outdoor advertising dis- play defined in subparagraph (C) (and treated by the taxpayer as real property) shall be considered property of a like kind as the property converted without regard to whether the taxpayer's interest in the re- placement property is the same kind of In- terest the taxpayer held in the converted property. (4) Special rule In the case of a compulsory or involuntary conversion described in paragraph (1), subsec- tion (a)(2)(B)(1) shall be applied by substitut- ing "3 years" for "2 years". (g) Cross references (1) For determination of the period for which the tax. payer has held property involuntarily converted, see sec. tion 1223. (2) For treatment of gains from involuntary conver. sions as capital gains in certain cases, see section 1231(a). (3) For exclusion from gross Income of certain gain from involuntary conversion of residence of taxpayer who has attained age 65, see section 121. (Aug. 16, 1954, ch. 736, 68A Stat. 303; June 29, 1956, ch. 464, § 5(a), 70 Stat. 407; Sept. 2, 1958, Pub. L. 85-866, title I, §§ 45, 46(a), 72 Stat. 1641; Feb. 26, 1964, Pub. L. 88-272, title II, § 206(b)(3), 78 Stat. 40; Dec. 30, 1969, Pub. L. 91-172, title IX, § 915(a), 83 Stat. 723; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(a)(128), 1906(b)(13)(A), title XXI, §§ 2127(a), 2140(a), 90 Stat. 1785, 1834, 1920, 1932.) Rznasmcxs iN TzxT Section 112 of the Internal Revenue Code of 1939, referred to in subsec. (b), was classified to section 112 of former Title, 26, Internal Revenue Code. Section 112 was repealed by section 7851(a)(1) of this title. For table of comparisons of the 1939 Code to the 1954 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title, for provisions that references in the 1954 Code to provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 195,4 Code, which is then applicable. AMEDmErrs 1976-Subsec. (a)(2). Pub. L. 94-455, §§1901(a)(128)(A), (B), 1906(b)(13)(A), redesignated former subsec. (a)(3) as (a)(2), and as so redesignated, struck out in par. catchline "where disposition oc- curred after 1950" following "Conversion into money", in provisions preceding subpar. (A) "and the disposi- tion of the converted property (as defined in para- graph (2)) occurred after December 31, 1950." follow- ing "use to the converted property," and in subpar. (B)(ii) "or his delegate" following "Secretary" wherev- er appearing, and added subpar. (E). Former subsec. (a)(2), which related to involuntary conversions into money where dispositions occurred prior to 1951, was struck out. Subsec. (a)(3). Pub. L. 94-455, § 1901(a)(128)(A), re- designated subsec. (a)(3) as (a)(2). Subsec. (b). Pub. L. 94-455, § 1901(a)(128)(C), (D), re- designated former subsec. c) as (b), and as so redesig- nated, substituted "or section 112(f)(2) of the Internal Revenue Code of 1939" for "or (2)". Former subsec. (b), which related to application of subsec. (a) in the case of property used by taxpayer as his principal resi- dence, if the destruction, theft, etc., occurred after 1950 and before 1954, was struck out. Subsec. (c). Pub. L. 94-455, § 1901(a)(128)(C), redesig- nated former subsec. (d) as (c). Former subsec. (c) re- designated (b). Subsec. d). Pub. L. 94-455. § 1901(a)(128)(C), rede- signated former subsec. (e) as Cd). Former subsec. Cd) redesignated (c). Subsec. (e. Pub. L. 94-455, § 1901(a)(128)(C), redesig- nated former subsec. f) as (e). Former subsec. (e) re- designated d). Subsec. (f). Pub. L. 94-455, §§ 1901(a)(128)(C), (E), (F), 2127(a), 2140(a), redesignated former subsec. (g) as f), and as so redesignated, In par. (2) struck out provisions relating to conversion of real property before Jan. 1, 1958, and substituted reference to sub- section (a)(2)(A) for reference to subsection (a)(3)(A), and added pars. (3) and (4). Former subsec. f) redesig- nated Ce). Subsec. (g). Pub. L. 94-455, § 1901(a)(128)(C), redesig- nated former subsec. (h) as (g). Former subsec. (g) re- designated (f). Subsec. h). Pub. L. 94-455, § 1901(a)(128)(C), rede- signated (h) as (g). 1969--Subsec, (a)(3)(B). Pub. L. 91-172 substituted "2 years" for "one year". 1964--Subsec. (h)(3). Pub. L. 88-272 added par. (3). 1958--Subsec. (a)(2). Pub. L. 85-866, § 45, added pro- vision defining "control". Subsec. (g). Pub. L. 85-868, § 46(a). added subsec. (g) and redesignated former subsec. (g) as (h). Subsec. h). Pub. L. 85-866, § 46(a), redesignated former subsec. (g) as (h). 1956-Subsec. f). Act June 29, 1956, added subsec. f). Former subsec. f) redesignated (g). Subsec. (g). Act June 29, 1956, redesignated former subsec. f) as (g). Enc.rivE DATE or 1976 Aiwum T~r Amendment of subsecs. (a) to (h) by section 1901(a)(128) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. Section 2127(b) of Pub. L. 94-455 provided that: "The amendment made by this section [enacting subsec. (g) of this section] shall apply to taxable years beginning after December 31, 1970." Section 2140(b) of Pub. L. 94-455 provided that: "The amendment made by this section [enacting subsec. (g)(4) of this section] shall apply with respect to any disposition of converted property (within the meaning of section 1033(a)(2) of the Internal Revenue Code of 1954) after December 31, 1974, unless a con- demnation proceeding with respect to such property began before the date of the enactment of this Act [Oct. 4, 19761." EpFt vE DATE or 1969 A MENDMwT Section 915(b) of Pub. L. 91-172 provided that: "The amendment made by this section [amending subsec. (a)(3)(B) of this section] shall apply only if the dispo- sition of the converted property (within the meaning of section 1033(a)(2) of the Internal Revenue Code of 1954 [subsec. (a)(2) of this section]) occurs after the date of the enactment of this Act [Dec. 30, 1969]." EFFEcTVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to disposi- tions after Dec. 31, 1963, in taxable years ending after such date, see section 206(c) of Pub. L. 88-272 set out § 1033 Page 648