[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1044(a)-1]

[Page 171]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1044(a)-1  Time and manner for making election under the Omnibus 
Budget Reconciliation Act of 1993.

    (a) Description. Section 1044(a), as added by section 13114 of the 
Omnibus Budget Reconciliation Act of 1993 (Pub. L. 103-66, 107 Stat. 
430), generally allows individuals and C corporations that sell publicly 
traded securities after August 9, 1993, to elect not to recognize 
certain gain from the sale if the taxpayer purchases common stock or a 
partnership interest in a specialized small business investment company 
(SSBIC) within the 60-day period beginning on the date the publicly 
traded securities are sold.
    (b) Time and manner for making the election. The election under 
section 1044(a) must be made on or before the due date (including 
extensions) for the income tax return for the year in which the publicly 
traded securities are sold. The election is to be made by reporting the 
entire gain from the sale of publicly traded securities on Schedule D of 
the income tax return in accordance with instructions for Schedule D, 
and by attaching a statement to Schedule D showing--
    (1) How the nonrecognized gain was calculated;
    (2) The SSBIC in which common stock or a partnership interest was 
purchased;
    (3) The date the SSBIC stock or partnership interest was purchased; 
and
    (4) The basis of the SSBIC stock or partnership interest.
    (c) Revocability of election. The election described in this section 
is revocable with the consent of the Commissioner.
    (d) Effective date. The rules set forth in this section are 
effective December 12, 1996.

[T.D. 8688, 61 FR 65322, Dec. 12, 1996]

                              Special Rules