[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.163(d)-1]

[Page 880]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.163(d)-1  Time and manner for making election under the Omnibus 
Budget Reconciliation Act of 1993.

    (a) Description. Section 163(d)(4)(B)(iii), as added by section 
13206(d) of the Omnibus Budget Reconciliation Act of 1993 (Pub. L. 103-
66, 107 Stat. 467), allows an electing taxpayer to take all or a portion 
of certain net capital gains, attributable to dispositions of property 
held for investment, into account as investment income. As a 
consequence, the capital gains affected by this election are not 
eligible for the maximum capital gain rate of 28 percent. The election 
may be made for net capital gains recognized by noncorporate taxpayers 
during any taxable year beginning after December 31, 1992.
    (b) Time and manner for making the election. The election under 
section 163(d)(4)(B)(iii) must be made on or before the due date 
(including extensions) of the income tax return for the taxable year in 
which the net capital gain is recognized. The election is to be made on 
Form 4952, Investment Interest Expense Deduction, in accordance with the 
Form and its instructions.
    (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]

[[Page 881]]