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TITLE 26-INTERNAL REVENUE CODE EFFECTIVE DATE Section 212(a)(3) of Pub. L. 94-455 provided that: "The amendmehts made by this subsection [enacting this section and renumbering former section 1056 as 1057] apply to sales or exchanges of franchises after December 31, 1975, in taxable years ending after such date". § 1057. Election to treat transfer to foreign trust, etc., as taxable exchange In lieu of payment of the tax imposed by sec- tion 1491, the taxpayer may elect (for purposes of this subtitle), at such time and in such manner as the Secretary may prescribe, to treat a transfer described in section 1491 as a sale or exchange of property for an amount equal in value to the fair market value of the property transferred and to recognize as gain the excess of- (1) the fair market value of the property so transferred, over (2) the adjusted basis (for determining gain) of such property in the hands of the transfer- or. (Added Pub. L. 94-455, title X, § 1015(c), Oct. 4, 1976, 90 Stat. 1618.) PRIOR PROVISIONS A prior section 1057, act Aug. 16, 1954, ch. 736, § 1057, 68A Stat. 311, which related to cross references, was renumbered section 1058 of this title. EFFECTIVE DATE Section applicable to transfers of property after Ot. 2, 1975, see section 1015(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under sec- tion 1491 of this title. § 1058. Cross references (1) For nonrecognition of gain in connection with the transfer of obsolete vessels to the Maritime Administra- tion under section 510 of the Merchant Marine Act, 1936, see subsection (e) of that section, as amended August 4, 1939 (46 U.S.C. 1160). (2) For recognition of gain or loss in connection with the construction of new vessels, see section 511 of such Act, as amended (46 U.S.C. 1161). (3) For nonrecognition of gain in connection with ves- sels exchanged with the Maritime Administration under section 8 of the Merchant Ship Sales Act of 1946, see sub- section (a) of that section (50 U.S.C. App. 1741). (Aug. 16, 1954, ch. 736, 68A Stat. 311, § 1054, re- numbered § 1055, Sept, 14, 1960, Pub. L. 86-779, § 8(b), 74 Stat. 1003; renumbered § 1056, Apr. 10, 1963, Pub. L. 88-9, § 1(b), 77 Stat. 7; renumbered § 1057, Oct. 4, 1976, Pub. L. 94-455, title II, § 212(a)(1), 90 Stat. 1545; renumbered § 1058, Oct. 4, 1976, Pub. L. 94-455, title X, § 1015(c), 90 Stat. 1618.) PART V-CHANGES TO EFFECTUATE F.C.C. POLICY Sec. 1071. Gain from sale or exchange to effectuate poli- cies of F.C.C. § 1071. Gain from sale or exchange to effectuate poli. cies of F.C.C. (a) Nonrecognition of gain or loss If the sale or exchange of property (including stock in a corporation) is certified by the Feder- al Communications Commission to be necessary or appropriate to effectuate a change in a policy of, or the adoption of a new policy by, the Commission with respect to the ownership and control ot radio broadcasting stations, such sale or exchange shall, if the taxpayer so elects, be treated as an involuntary conversion of such property within the meaning of section 1033. For purposes of such section as made applicable by the provisions of this section, stock of a cor- poration operating a radio broadcasting station, whether or not representing control of such corporation, shall be treated as property similar or related in service or use to the property so converted. The part of the gain, if any, on such sale or exchange to which section 1033 is not applied shall nevertheless not be recognized, if the taxpayer so elects, to the extent that it is applied to reduce the basis for determining gain or loss on sale or exchange of property, of a character subject to the allowance for depreci- ation under section 167, remaining in the hands of the taxpayer immediately after the sale or exchange, or acquired in the same taxable year. The manner and amount of such reduction shall be determined under regulations pre- scribed by the Secretary. Any election made by the taxpayer under this section shall be made by a statement to that effect in his return for the taxable year in which the sale or exchange takes place, and such election shall be binding for the taxable year and all subsequent taxable years. (b) Basis For basis of property acquired on a sale or exchange treated as an involuntary conversion under subsection (a), see section 1033(b). (Aug. 16, 1954, ch. 736, 68A Stat. 311; Sept. 2, 1958, Pub. L. 85-866, title I, §48(a), 72 Stat. 1642; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(b)(31)(E), 1906(b)(13)(A), 90 Stat. 1800, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (b). Pub. L. 94-455, § 1901(b)(31)(E), substi- tuted "section 1033(b)" for "section 1033(c)". 1958-Subsec. (a). Pub. L. 85-868 substituted "to ef- fectuate a change in a policy of, or the adoption of a new policy by, the Commission" for "to effectuate the policies of the Commission". ErnECIvE DATE OF 1976 AMENDMENT Amendment of subsec. (b) by section 1901(b)(31)(E) 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. EFFECTIVE DATE OF 1958 Aimswr Section 48(b) of Pub. L. 85-866 provided that: "The amendment made by subsection (a) [to subsec. (a) of § 1057 Page 658