Public Law 119-73 (01/23/2026)

26 U.S.C. § 1287

Denial of capital gain treatment for gains on certain obligations not in registered form

(a)

In general

If any registration-required obligation is not in registered form, any gain on the sale or other disposition of such obligation shall be treated as ordinary income (unless the issuance of such obligation was subject to tax under section 4701).

(b)

Definitions

For purposes of subsection (a)—
(1)

Registration-required obligation

The term “registration-required obligation” has the meaning given to such term by section 163(f)(2).

(2)

Registered form

The term “registered form” has the same meaning as when used in section 163(f).

Pub. L. 98–369, div. A, title I, § 41(a)98 Stat. 552Pub. L. 111–147, title V, § 502(a)(2)(D)124 Stat. 107(Added , , ; amended , , .)

Editorial Notes

Amendments

Pub. L. 111–1472010—Subsec. (b)(1). struck out “except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall not apply” before period.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–147section 502(f) of Pub. L. 111–147section 149 of this titleAmendment by applicable to obligations issued after the date which is 2 years after , see , set out as a note under .

Effective Date

section 44 of Pub. L. 98–369section 1271 of this titleSection applicable to taxable years ending after , except as otherwise provided, see , set out as a note under .