[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: 26CFR1.1071-1]

[Page 186]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1071-1  Gain from sale or exchange to effectuate policies of 
Federal Communications Commission.

    (a)(1) At the election of the taxpayer, section 1071 postpones the 
recognition of the gain upon the sale or exchange of property if the 
Federal Communications Commission grants the taxpayer a certificate with 
respect to the ownership and control of radio broadcasting stations 
which is in accordance with subparagraph (2) of this paragraph. Any 
taxpayer desiring to obtain the benefits of section 1071 shall file such 
certificate with the Commissioner of Internal Revenue, or the district 
director for the internal revenue district in which the income tax 
return of the taxpayer is required to be filed.
    (2)(i) In the case of a sale or exchange before January 1, 1958, the 
certificate from the Federal Communications Commission must clearly 
identify the property and show that the sale or exchange is necessary or 
appropriate to effectuate the policies of such Commission with respect 
to the ownership and control of radio broadcasting stations.
    (ii) In the case of a sale or exchange after December 31, 1957, the 
certificate from the Federal Communications Commission must clearly 
identify the property and show that the sale or exchange is necessary or 
appropriate to effectuate a change in a policy of, or the adoption of a 
new policy by, such Commission with respect to the ownership and control 
of radio broadcasting stations.
    (3) The certificate shall be accompanied by a detailed statement 
showing the kind of property, the date of acquisition, the cost or other 
basis of the property, the date of sale or exchange, the name and 
address of the transferee, and the amount of money and the fair market 
value of the property other than money received upon such sale or 
exchange.
    (b) Section 1071 applies only in the case of a sale or exchange made 
necessary by reason of the Federal Communications Commission's policies 
as to ownership or control of radio facilities. Section 1071 does not 
apply in the case of a sale or exchange made necessary as a result of 
other matters, such as the operation of a broadcasting station in a 
manner determined by the Commission to be not in the public interest or 
in violation of Federal or State law.
    (c) An election to have the benefits of section 1071 shall be made 
in the manner prescribed in Sec. 1.1071-4.
    (d) For purposes of section 1071, the term radio broadcasting 
includes telecasting.