WHAT THE LAW DOINCongress, in plain words

The law › Title 26, Internal Revenue Code › Chapter 1

26 U.S.C. 1259: Constructive sales treatment for appreciated financial positions

Created in 1997 by the Taxpayer Relief Act of 1997 (Public Law 105-34). Changed by 2 later laws. 1 bill in this Congress would change it.

This Congress

  • H.R. 10357 Digital Asset Tax Certainty Act · introduced · would change (b), (c), (e)

How it got here

2004

  • Pub. L. 108–311, §406(e)(1), substituted "A taxpayer shall not be treated as having made a constructive sale solely because the taxpayer enters into a contract" for "The term 'constructive sale' shall not include any contract". (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(2), substituted "cause a constructive sale" for "be treated as a constructive sale" in introductory provisions. (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(3), substituted "on or before" for "before the end of". (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(7), substituted "certain closed transactions where risk of loss on appreciated financial position diminished" for "positions which are reestablished" in heading. (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(2), substituted "cause a constructive sale" for "be treated as a constructive sale". (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(4), struck out "substantially similar" after "another" in introductory provisions. (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(5), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: "which also would otherwise be treated as a constructive sale of such position,". (Working Families Tax Relief Act of 2004) Law text · (c)
  • Pub. L. 108–311, §406(e)(6), inserted "on or" before "before the 30th day". (Working Families Tax Relief Act of 2004) Law text · (c)

1998

  • Pub. L. 105–206, §6010(a)(1)(A), substituted "position" for "debt". (Internal Revenue Service Restructuring and Reform Act of 1998) Law text · (b)
  • Pub. L. 105–206, §6010(a)(1)(B), (C), added subpar. (B) and redesignated former subpar. (B) as (C). (Internal Revenue Service Restructuring and Reform Act of 1998) Law text · (b), (C)
  • Pub. L. 105–206, §6010(a)(2), inserted "(including cash)" after "property". (Internal Revenue Service Restructuring and Reform Act of 1998) Law text · (d)

Text, outline and history from the official U.S. Code (2024 edition) on GovInfo, published by the Office of the Law Revision Counsel. Changes made after that edition appear under This Congress.