
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1058]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
          Subchapter O--Gain or Loss on Disposition of Property
 
                         PART IV--SPECIAL RULES
 
Sec. 1058. Transfers of securities under certain agreements


(a) General rule

    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.

(b) Agreement requirements

    In order to meet the requirements of this subsection, an agreement 
shall--
        (1) provide for the return to the transferor of securities 
    identical to the securities transferred;
        (2) require that payments shall be made to the transferor of 
    amounts equivalent to all interest, dividends, and other 
    distributions which the owner of the securities is entitled to 
    receive during the period beginning with the transfer of the 
    securities by the transferor and ending with the transfer of 
    identical securities back to the transferor;
        (3) not reduce the risk of loss or opportunity for gain of the 
    transferor of the securities in the securities transferred; and
        (4) meet such other requirements as the Secretary may by 
    regulation prescribe.

(c) Basis

    Property acquired by a taxpayer described in subsection (a), in a 
transaction described in that subsection, shall have the same basis as 
the property transferred by that taxpayer.

(Added Pub. L. 95-345, Sec. 2(d)(1), Aug. 15, 1978, 92 Stat. 482.)


                            Prior Provisions

    A prior section 1058 was renumbered section 1061 of this title.


                             Effective Date

    Section applicable with respect to amounts received after Dec. 31, 
1976, as payments with respect to securities loans (as defined in 
section 512(a)(5) of this title), and transfers of securities, under 
agreements described in this section, occurring after such date, see 
section 2(e) of Pub. L. 95-345, set out as an Effective Date of 1978 
Amendment note under section 509 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 512, 954 of this title.
