26 U.S.C. § 1239

Editorial Notes

Amendments

Pub. L. 105–341997—Subsec. (b)(3). added par. (3).

Pub. L. 99–514, § 642(a)(1)(A)1986—Subsec. (b)(1). , substituted “controlled entities” for “80-percent owned entities”.

Pub. L. 99–514, § 642(a)(1)(B)Subsec. (c). , (C), in heading, substituted “Controlled entity” for “80-percent owned entity”, in par. (1), in introductory provisions, substituted “controlled entity” for “80-percent owned entity”, in subpar. (A), substituted “more than 50 percent of the value” for “80 percent or more in value”, in subpar. (B), substituted “more than 50 percent” for “80 percent or more”, and added subpar. (C), and amended par. (2) generally. Prior to amendment, par. (2) read as follows: “For purposes of subparagraphs (A) and (B) of paragraph (1), the principles of section 318 shall apply, except that—

“(A) the members of an individual’s family shall consist only of such individual and such individual’s spouse,

“(B) paragraph (2)(C) of section 318(a) shall be applied without regard to the 50-percent limitation contained therein, and

“(C) paragraph (3) of section 318(a) shall not apply.”

Pub. L. 98–369, § 421(b)(6)1984—Subsec. (b). , redesignated pars. (2) and (3) as (1) and (2), respectively. Former par. (1), defining a husband and wife as “related persons”, was struck out.

Pub. L. 98–369, § 175(b), amended subsec. (b) generally, adding par. (3).

Pub. L. 98–369, § 557(a)Subsec. (d). , added subsec. (d).

Pub. L. 98–369, § 175(a)Subsec. (e). , added subsec. (e).

Pub. L. 97–448, § 301(a)1983—Subsec. (b). , substituted provisions that “related persons” means (1) a husband and wife, and (2) a person and all entities which are 80-percent owned entities with respect to such person, for provisions which provided that “related persons” meant (1) the taxpayer and the taxpayer’s spouse, (2) the taxpayer and an 80-percent owned entity, or (3) two 80-percent owned entities.

Pub. L. 97–448, § 301(b)Subsec. (c)(1). , inserted “, with respect to any person” after “means” in introductory provisions and substituted “such person” for “the taxpayer” in subpars. (A) and (B).

Pub. L. 97–448, § 301(b)Subsec. (c)(2). , struck out “and” at end of subpar. (A), substituted “paragraph (2)(C)” for “paragraphs (2)(C) and (3)(C)” in subpar. (B), and added subpar. (C).

Pub. L. 96–4711980—Subsec. (b)(1). substituted “the taxpayer and the taxpayer’s spouse” for “a husband and wife”.

Pub. L. 96–471Subsec. (b)(2). substituted “the taxpayer and an 80-percent owned entity, or” for “an individual and a corporation 80 percent or more in value of the outstanding stock of which is owned, directly or indirectly, by or for such individual, or”.

Pub. L. 96–471Subsec. (b)(3). substituted “two 80-percent owned entities” for “two or more corporations 80 percent or more in value of the outstanding stock of each of which is owned, directly or indirectly, by or for the same individual”.

Pub. L. 96–471Subsec. (c). substituted provisions defining an “80-percent owned entity” for provisions relating to constructive ownership of stock.

Pub. L. 95–6001978—Subsec. (a). substituted “of a character which is subject to the allowance for depreciation provided in section 167” for “subject to the allowance for depreciation provided in section 167”.

Pub. L. 94–4551976— substituted “sale of depreciable property between certain related taxpayers” for “sale of certain property between spouses or between an individual and a controlled corporation” in section catchline.

Pub. L. 94–455Subsec. (a). substituted provisions for transactions between related persons for such transactions (1) between a husband and wife; or (2) between an individual and a corporation more than 80 percent in value of the outstanding stock of which is owned by such individual, his spouse, and his minor children and minor grandchildren and “any gain recognized to the transferee shall be treated as ordinary income if such property is, in the hands of the transferee, subject to the allowance for depreciation provided in section 167” for “any gain recognized to the transferor from the sale or exchange of such property shall be considered as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231”.

Pub. L. 94–455Subsec. (b). substituted definition of “related persons” for prior provision making section applicable only to sales or exchanges of depreciable property.

Pub. L. 94–455May 3, 1951Subsec. (c). substituted provision respecting constructive ownership of stock for prior provision making section inapplicable with respect to sales or exchanges made on or before .

Pub. L. 85–8661958—Subsec. (c). added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 1997 Amendment

Pub. L. 105–34Aug. 5, 1997section 1308(c) of Pub. L. 105–34section 267 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 1986 Amendment

Pub. L. 99–514, title VI, § 642(c)Oct. 22, 1986100 Stat. 2284Pub. L. 100–647, title I, § 1006(i)(3)Nov. 10, 1988102 Stat. 3411

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title I, § 175(c)July 18, 198498 Stat. 708

section 421(b)(6) of Pub. L. 98–369July 18, 1984section 421(d) of Pub. L. 98–369section 1041 of this titleAmendment by applicable to transfers after , in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see , set out as an Effective Date note under .

Pub. L. 98–369, div. A, title V, § 557(b)July 18, 198498 Stat. 899

Effective Date of 1983 Amendment

Pub. L. 97–448Oct. 19, 1980section 311(a) of Pub. L. 97–448section 453 of this titleAmendment by applicable to dispositions made after , in taxable years ending after such date, see , set out as a note under .

Effective Date of 1978 Amendment

Pub. L. 95–600, title VII, § 701(v)(2)Nov. 6, 197892 Stat. 2920Pub. L. 99–514, § 2Oct. 22, 1986100 Stat. 2095

Effective Date of 1976 Amendment

Pub. L. 94–455, title XXI, § 2129(b)Oct. 4, 197690 Stat. 1922