In the case of a share of stock issued pursuant to section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., sec. 1718), the basis of such share in the hands of the initial holder shall be an amount equal to the capital contributions evidenced by such share reduced by the amount (if any) required by section 162(d) to be treated (with respect to such share) as ordinary and necessary expenses paid or incurred in carrying on a trade or business.
Pub. L. 86–779, § 8(b)74 Stat. 1003(Added , , .)
Editorial Notes
Prior Provisions
section 1063 of this titleA prior section 1054 was renumbered .
Statutory Notes and Related Subsidiaries
Effective Date
section 8(d) of Pub. L. 86–779section 162 of this titleSection applicable with respect to taxable years beginning after , see , set out as an Effective Date of 1960 Amendment note under .