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TITLE 26-INTERNAL REVENUE CODE (3) securities issued or guaranteed as to principal or interest by a government or sub- division thereof (including those issued by a corporation which is an instrumentality of a government or subdivision thereof); (4) stock or securities which were acquired from a registered holding company or an as- sociate company of a registered holding com- pany which acquired such stock or securities after February 28, 1938, unless such stock or securities (other than obligations described as nonexempt property in paragraph (1), (2), or (3)) were acquired in obedience to an order of the Securities and Exchange Commission or were acquired with the authorization or ap- proval of the Securities and Exchange Com- mission under any section of the Public Util- ity Holding Company Act of 1935 (15 U.S.C. 79k(b)); (5) money, and the right to receive money not evidenced by a security other than an ob- ligation described as nonexempt property in paragraph (2) or (3). (f) Stock or securities For purposes of this part, the term "stock or securities" means shares of stock in any corpo- ration, certificates of stock or interest in any corporation, notes, bonds, debentures, and evi- dences of indebtedness (including any evidence of an interest in or right to subscribe to or pur- chase any of the foregoing). (Aug. 16, 1954, ch. 736, 68A Stat. 317; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(a)(133), 90 Stat. 1786.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455 struck out "49 Stat. 820;" before "15 U.S.C. 79k(b)". Subsec. (b). Pub. L. 94-455 struck out "49 Stat. 804;" before "15 U.S.C. 79b(a)". Subsec. (e)(4). Pub. L. 94-455 struck out "49 Stat. 820;" before "15 U.S.C. 79k(b)". EreTivE DATE o0 1976 AMENDMENT Amendment of subsecs. (a), (b), (e)(4) by section 1901(a)(133) 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. PART VII-WASH SALES OF STOCK OR SECURITIES Sec. 1091. Loss from wash sales of stock or securities. § 1091. Loss from wash sales of stock or securities (a) U isallowance of loss deduction Ir. the case of any loss claimed to have been sucained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has ac- quired (by purchase or by an exchange on which the entire amount of gain or loss was rec- ognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction for the loss shall be allowed under section 165(c)(2); nor shall such deduction be allowed a corpora- tion under section 165(a) unless it is a dealer in stocks or securities, and the loss is sustained in a transaction made in the ordinary course of its business. (b) Stock acquired less than stock sold If the amount of stock or securities acquired (or covered by the contract or option to ac- quire) is less than the amount of stock or secu- rities sold or otherwise disposed of, then the particular shares of stock or securities the loss from the sale or other disposition of which is not deductible shall be determined under regu- lations prescribed by the Secretary. (c) Stock acquired not less than stock sold If the amount of stock or securities acquired (or covered by the contract or option to ac- quire) is not less than the amount of stock or securities sold or otherwise disposed of, then the particular shares of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibi- lity of the loss shall be determined under regu- lations prescribed by the Secretary. (d) Unadjusted basis In case of wash sale of stock If the property consists of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nonde- ductibility (under this section or corresponding provisions of prior internal revenue laws) of the loss from the sale or other disposition of sub- stantially identical stock or securities, then the basis shall be the basis of the stock or securities so sold or disposed of, increased or decreased, as the case may be, by the difference, if any, be- tween the price at which the property was ac- quired and the price at which such substantial- ly identical stock or securities were sold or oth- erwise disposed of. (Aug. 16, 1954, ch. 736, 68A Stat. 319; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.) AMENDMENTS 1976-Pub. L. 94-455 struck out "or his delegate" fol- lowing "Secretary", wherever appearing. CROSS REFnmEcEs Losses between related taxpayers, see section 267 of this title. Losses deductible from gross income by corporations and individuals, see section 165 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 312, 1223 of this tltle. PART VIII-DISTRIBUTIONS PURSUANT TO BANK HOLDING COMPANY ACT OF 1956 Sec. 1101. Distributions pursuant to Bank Holding Compa- ny Act of 1956. 1102. Special rules. 1103. Definitions. § 1101. Distributions pursuant to Bank Holding Com- pany Act of 1956 (a) Distributions of certain non-banking property (1) Distributions of prohibited property If- (A) a qualified bank holding corporation distributes prohibited property (other than Page 663 § 1101