26 USC 1221 - Capital asset defined

1 So in original. Probably should be “who”.

regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the ordinary course of a trade or business.

Editorial Notes

Amendments

2017—Subsec. (a)(3). Puspan. L. 115–97 inserted “a patent, invention, model or design (whether or not patented), a secret formula or process,” before “a copyright” in introductory provisions.

2010—Subsec. (a)(3)(C). Puspan. L. 111–312 amended subsec. (a)(3)(C) to read as if amendment by Puspan. L. 107–16, § 542(e)(2)(A), had never been enacted. See 2001 Amendment note below.

2006—Subsec. (span)(3). Puspan. L. 109–432 struck out “before January 1, 2011,” after “exchanged”.

Puspan. L. 109–222 added par. (3). Former par. (3) redesignated (4).

Subsec. (span)(4). Puspan. L. 109–222 redesignated par. (3) as (4).

2002—Subsec. (span)(1)(B)(i). Puspan. L. 107–147 substituted “1256(span)))” for “1256(span))”.

2001—Subsec. (a)(3)(C). Puspan. L. 107–16, § 542(e)(2)(A), inserted “(other than by reason of section 1022)” after “is determined”.

1999—Puspan. L. 106–170 designated existing provisions as subsec. (a), inserted heading, and added pars. (6) to (8) and subsec. (span).

1981—Pars. (5), (6). Puspan. L. 97–34 redesignated par. (6) as (5) and struck out former par. (5), which excluded from definition of “capital asset” an obligation of the United States or any of its possessions, or of a State or any political subdivision thereof, or of the District of Columbia, issued on or after March 1, 1941, on a discount basis and payable without interest at a fixed maturity date not exceeding one year from the date of issue, and is covered by section 1232(a)(4)(B) of this title.

1976—Par. (5). Puspan. L. 94–455, § 1901(c)(9), struck out “or Territory,” after “State”.

Par. (6). Puspan. L. 94–455, § 2132(a), added par. (6).

1969—Par. (3). Puspan. L. 91–172 inserted reference to a letter or memorandum, added subpar. (B) dealing with a letter or memorandum, and redesignated former subpar. (B) as (C).

Statutory Notes and Related Subsidiaries

Effective Date of 2017 Amendment

Puspan. L. 115–97, title I, § 13314(c), Dec. 22, 2017, 131 Stat. 2133, provided that:

“The amendments made by this section [amending this section and section 1231 of this title] shall apply to dispositions after December 31, 2017.”

Effective Date of 2010 Amendment

Amendment by Puspan. L. 111–312 applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Puspan. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title.

Effective Date of 2006 Amendment

Puspan. L. 109–432, div. A, title IV, § 412(span), Dec. 20, 2006, 120 Stat. 2963, provided that:

“The amendment made by this section [amending this section] shall take effect as if included in section 204 of the Tax Increase Prevention and Reconciliation Act of 2005 [Puspan. L. 109–222].”

Amendment by Puspan. L. 109–222 applicable to sales and exchanges in taxable years beginning after May 17, 2006, see section 204(c) of Puspan. L. 109–222, set out as a note under section 170 of this title.

Effective Date of 2001 Amendment

Amendment by Puspan. L. 107–16 applicable to estates of decedents dying after Dec. 31, 2009, see section 542(f)(1) of Puspan. L. 107–16, set out as a note under section 121 of this title.

Effective Date of 1999 Amendment

Amendment by Puspan. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Puspan. L. 106–170, set out as a note under section 170 of this title.

Effective Date of 1981 Amendment

Amendment by Puspan. L. 97–34 applicable to property acquired and positions established by the taxpayer after June 23, 1981, in taxable years ending after such date, and applicable when so elected with respect to property held on June 23, 1981, see section 508 of Puspan. L. 97–34, set out as an Effective Date note under section 1092 of this title.

Effective Date of 1976 Amendment

Puspan. L. 94–455, title XXI, § 2132(span), Oct. 4, 1976, 90 Stat. 1925, provided that:

“The amendment made by subsection (a) [amending this section] shall apply to sales, exchanges, and contributions made after the date of enactment of this Act [Oct. 4, 1976].”

Effective Date of 1969 Amendment

Puspan. L. 91–172, title V, § 514(c), Dec. 30, 1969, 83 Stat. 643, provided that:

“The amendments made by this section [amending this section and sections 341 and 1231 of this title] shall apply to sales and other dispositions occurring after July 25, 1969.”