[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: 26CFR1.1334-1]

[Page 655-656]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1334-1  Restoration of value of investments.

    If any interest of the taxpayer in or with respect to property was 
determined to be worthless and was treated as a war loss under section 
127(a)(3) of the Internal Revenue Code of 1939 (see 26 CFR (1939) 
29.127(a)-4) (Regulations 111), or if the taxpayer retained an interest 
in a corporation with respect to which he sustained a war loss under 
section 127(e) of the Internal Revenue Code of 1939, and if the interest 
in the hands of the taxpayer is restored in

[[Page 656]]

value, in whole or in part, by reason of a recovery with respect to the 
underlying assets treated as war loss property, then such restoration in 
value is a recovery by the taxpayer for the purposes of section 1331. In 
the application of section 1333, such restoration shall be treated as a 
recovery of the same interest considered as destroyed or seized. War 
loss property is considered as not being in existence from the date of 
the loss to the date of its recovery.

[T.D. 6500, 25 FR 12046, Nov. 26, 1960]