(B) in connection with any attempt to influence the general public, or segments, thereof, with respect to legislative matters, elections, or referendums. (f) Cross reference. For special rule relating to expenses in connection with subdividing real property for sale, see section 1237. (Aug. 16, 1954, ch. 736, 68A Stat. 45; Sept. 2, 1958, Pub. L. 85-866, title I, § 5 (a), 72 Stat. 1608; Sept. 14, 1960, Pub. L. 86-779, §§ 7(b), 8(a), 74 Stat. 1002, 1003; Oct. 16, 1962, Pub. L. 87-834, §§ 3(a), 4(b), 76 Stat. 973, 976.) AMENDMENTS 1962-Subsec. (a)(2). Pub. L. 87-834, § 4(b), substituted "(including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances)" for "including the entire amount expended for meals and lodging)." Subsec. (e). Pub. L. 87-834, § 3(a), added subsec. (e), and redesignated former subsec. (e) as (f). Subsec. (f). Pub. L. 87-834, § 3(a), redesignated former subsec. (e) as (f). 1960 Subsec. (b). Pub. L. 86-779, §7(b), inserted "the dollar limitations," following "the percentage limitations,". Subsec. (d). Pub. L. 86-779, § 8(a), added subsec. (d). Former subsec. (d) redesignated (e). Subsec. (e). Pub. L. 86-779, § 8(a), redesignated former subsec. (d) as (e). 1958-Subsec. (c). Pub. L. 85-866, § 5(a), added subsec. (c) and redesignated former subsec. (c) as (d). Subsec. (d). Pub. L. 85-866, § 5(a), redesignated former subsec. (c) as (d). EFFECTIVE DATE OF 1962 AMENDMENT Section 4(c) of Pub. L. 87-834 provided that: "The amendments made by this section [amending subsec. (a) of this section and adding section 274 of this title] shall apply with respect to taxable years ending after December 31, 1962, but only in respect of periods after such date." Section 3(b) of Pub. L. 87-834 provided that: "The amendments made by this section [adding subsec. (e) and redesignating former subsec. (e) as (f)] shall apply to taxable years beginning after December 31, 1962." EFFECTIVE DATE OF 1960 AMENDMENT Section 7(c) of Pub. L. 86-779 provided that: "The amendments made by subsections (a) and (b) [to section 170 of this title and subsec. (b) of this section] shall apply with respect to taxable years beginning after December 31, 1959." Section 8(d) of Pub. L. 86-779 provided that: "The amendments made by subsections (a), (b), and (c) [adding subsec. (d) of this section and section 1054 of this title and amending table of sections for Part IV by adding item 1054 and numbering former item 1054 as 1055] shall apply with respect to taxable years beginning after December 31, 1959." EFFECTIVE DATE OF 1958 AMENDMENT Section 5(b) of Pub. L. 85-866 provided that: "The amendment made by subsection (a) [to subsecs. (c) and (d) of this section] shall apply only with respect to expenses paid or incurred after the date of the enactment of this Act [Sept. 2, 1958]. The determination as to whether any expense paid or incurred on or before the date of the enactment of this Act [Sept. 2, 1958] shall be allowed as a deduction shall be made as if this section had not been enacted and without inference drawn from the fact that this section is not made applicable with respect to expenses paid or incurred on or before the date of the enactment of this Act [Sept. 2, 1958]." DEDUCTIBILITY OF ACCRUED VACATION PAY Section 97 of Pub. L. 85-866, as amended by Pub. L. 86-496, § 2, June 8, 1960, 74 Stat. 164; Pub. L. 88-153, Oct. 17, 1963, 77 Stat. 272; Pub. L. 83-554, § 1, Aug. 31, 1964, 78 Stat. 761, provided that: "Deduction under section 162 of the Internal Revenue Code of 1954 [this section] for accrued vacation pay, computed in accordance with the method of accounting consistently followed by the taxpayer in arriving at such deduction shall not be denied for any taxable year ending before January 1, 1967, solely by reason of the fact that (1) the liability for the vacation pay to a specific person has not been clearly established, or (2) the amount of the liability to each individual is not capable of computation with reasonable accuracy if at the time of the accrual the employee in respect of whom the vacation pay is accrued has performed the qualifying service necessary under a plan or policy (communicated to the employee before the beginning of the vacation year) which provides for vacations with pay to qualified employees." INVESTIGATION OF, AND REPORTS ON, TREATMENT OF ENTERTAINMENT and CERTAIN OTHER EXPENSES Pub. L. 86-564, title III, § 301, June 30, 1960, 74 Stat. 291, provided that: "(a)_Investigation and report by Joint Committee on Internal Revenue Taxation. "The Joint Committee on Internal Revenue Taxation is hereby authorized and directed to make a full and complete investigation and study of the operation and effects of present law, regulations, and practices relating to the deduction, as ordinary and necessary business expenses, of expenses for entertainment, gifts, dues or initiation fees in social, athletic, or sporting clubs or organizations, and similar or related items. The Joint Committee shall report to the House of Representatives and to the Senate the results of its investigation and study as soon as practicable during the 87th Congress, together with its recommendations for any changes in the law and administrative practices which in its judgment are necessary or appropriate. "(b) Report by Secretary of the Treasury. "The Secretary of the Treasury is hereby authorized and directed to report as soon as practicable during the 87th Congress to the House of Representatives and to the Senate the results of the enforcement program of the Internal Revenue Service (announced in Technical Information Release 221, dated April 4, 1960) relating to the deductions, as ordinary and necessary business expenses, of expenses for entertainment, travel, yachts, hunting lodges, club dues, and similar or related items, together with such recommendations with respect thereto as he considers necessary or appropriate to avoid misuse of the business expense deduction. "(c) Consultation of staffs. "The staff of the Joint Committee on Internal Revenue Taxation, and the staff of the Secretary of the Treasury, shall consult and cooperate with each other in performing any duties assigned to carry out the purposes of this section." FILING OF CLAIMS FOR REFUNDS OF OVERPAYMENTS Extension of time for filing of claims for refunds or credit of overpayments of income tax resulting from application of this section, see section 96 of Pub. L. 85-866, set out as a note under section 6511 of this title. CROSS REFERENCES Adjusted gross income as gross income minus, among others, trade and business deductions, see section 62 of this title. Capital expenditures not deductible, see section 263 of this title. Charitable contributions and gifts deductible, see section 170 of this title. Corporate organizational expenses as deferred expenses, see section 248 of this title. Employee stock options, disallowance of deduction under this section, see section 421 (a) (2) of this title. Employer contributions to employees' trust or annuity plan negotiated during government operation as deductible under this section, see section 404 (c) of this title. Nontrade or nonbusiness expenses deductible, see section 212 of this title. Personal, living and family expenses not deductible, see section 262 of this title. Taxable year deductions to be taken, see section 461 of this title. Trade or business defined, see section 7701 (a) (26) of this title. § 163. Interest. (a) General rule. There shall be allowed as a deduction all interest paid or accrued within the taxable year on indebtedness. (b) Installment purchases where interest charge is not separately stated. (1) General rule. If personal property or educational services are purchased under a contract (A) which provides that payment of part or all of the purchase price is to be made in installments, and (B) in which carrying charges are separately stated but the interest charge cannot be ascertained, then the payments made during the taxable year under the contract shall be treated for purposes of this section as if they included interest equal to 6 percent of the average unpaid balance under the contract during the taxable year. For purposes of the preceding sentence, the average unpaid balance is the sum of the unpaid balance outstanding on the first day of each month beginning during the taxable year, divided by 12. For purposes of this paragraph, the term "educational services" means any service (including lodging) which is purchased from an educational institution (as defined in section 151(e) (4) and which is provided for a student of such institution. (2) Limitation. In the case of any contract to which paragraph (1) applies, the amount treated as interest for any taxable year shall not exceed the aggregate carrying charges which are properly attributable to such taxable year. (c) Redeemable ground rents. For purposes of this subtitle, any annual or periodic rental under a redeemable ground rent (excluding amounts in redemption thereof) shall be treated as interest on an indebtedness secured by a mortgage. (d) Cross references. (1) For disallowance of certain amounts paid in connection with insurance, endowment, or annuity contracts, see section 264. (2) For disallowance of deduction for interest relating to tax-exempt income, see section 265 (2). (3) For disallowance of deduction for carrying charges chargeable to capital account, see section 266. (4) For disallowance of interest with respect to transactions between related taxpayers, see section 267. (5) For treatment of redeemable ground rents and real property held subject to liabilities under redeemable ground rents, see section 1055. (Aug. 16, 1954, ch. 736, 68A Stat. 46; Apr. 10, 1963, Pub. L. 88-9, § 1 (a), (c), 77 Stat. 6, 7; Feb. 26, 1964, Pub. L. 88-272, title II, § 224 (c), 78 Stat. 79.) AMENDMENTS 1964 Subsec. (b)(1). Pub. L. 88-272 included the purchase of educational services, and defined "educational services." 1963-Subsec. (c). Pub. L. 88-9, § 1(a), added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 88-9, § 1(a), (c), redesignated former subsec. (c) as (d), and added par. (5). EFFECTIVE DATE OF 1934 AMENDMENT Section 224 (d) of Pub. L. 88-272 provided that: "The amendments made by subsections (a) [adding section 483 of this title] and (b) [to the analysis preceding section 481 of this title] shall apply to payments made after December 31, 1963, on account of sales or exchanges of property occurring after June 30, 1963, other than any sale or exchange made pursuant to a binding written contract (including an irrevocable written option) entered into before July 1, 1963. The amendments made by subsection (c) [to subsec. (b)(1) of this section] shall apply to payments made during taxable years beginning after December 31, 1963." EFFECTIVE DATE OF 1963 AMENDMENT Subsec. (c) of this section effective as of Jan. 1, 1962, and applicable with respect to taxable years ending on or after such date, see section 2 of Pub. L. 88-9, set out as a note under section 1055 of this title. CROSS REFERENCES Expenses and interest relating to tax-exempt income, see section 265 of this title. Interest as income, see section 61 of this title. Amortizable bond premium, see section 171 of this Business leases, see section 514 of this title. Cooperative housing corporation, tenant-stockholder, see section 216 of this title. Local benefit assessments, see section 164 of this Obligations of corporations organized under Act of Recipients of income in respect of decedents, see sec- Specially treated deductions, see section 270 of this Tax-exempt income, see section 265 of this title. Unpaid, see section 267 of this title. Taxable year deduction to be taken, see section 461 of this title. § 164. Taxes. (a) General rule. Except as otherwise provided in this section, the following taxes shall be allowed as a deduction for the taxable year within which paid or accrued: (1) State and local, and foreign, real property taxes. (2) State and local personal property taxes. (3) State and local, and foreign, income, war profits, and excess profits taxes. (4) State and local general sales taxes. (5) State and local taxes on the sale of gasoline, diesel fuel, and other motor fuels. In addition, there shall be allowed as a deduction State and local, and foreign, taxes not described in the preceding sentence which are paid or accrued within the taxable year in carrying on a trade or business or an activity described in section 212 (relating to expenses for production of income). (b) Definitions and special rules. For purposes of this section (1) Personal property taxes. The term "personal property tax" means an ad valorem tax which is imposed on an annual basis in respect of personal property. (2) General sales taxes. (A) In general. The term "general sales tax" means a tax imposed at one rate in respect of the sale at retail of a broad range of classes of items. (B) Special rules for food, etc. In the case of items of food, clothing, medical supplies, and motor vehicles (i) the fact that the tax does not apply in respect of some or all of such items shall not be taken into account in determining whether the tax applies in respect of a broad range of classes of items, and (ii) the fact that the rate of tax applicable in respect of some or all of such items is lower than the general rate of tax shall not be taken into account in determining whether the tax is imposed at one rate. (C) Items taxed at different rates. Except in the case of a lower rate of tax applicable in respect of an item described in subparagraph (B), no deduction shall be allowed under this section for any general sales tax imposed in respect of an item at a rate other than the general rate of tax. (D) Compensating use taxes. A compensating use tax in respect of an item shall be treated as a general sales tax. For purposes of the preceding sentence, the term "compensating use tax" means, in respect of any item, a tax which (i) is imposed on the use, storage, or consumption of such item, and (ii) is complementary to a general sales tax, but only if a deduction is allowable under subsection (a) (4) in respect of items sold at retail in the taxing jurisdiction which are similar to such item. (3) State or local taxes. A State or local tax includes only a tax imposed by a State, a possession of the United States, or a political subdivision of any of the foregoing, or by the District of Columbia. (4) Foreign taxes. A foreign tax includes only a tax imposed by the authority of a foreign country. (5) Separately stated general sales taxes and gasoline taxes. If the amount of any general sales tax or of any tax on the sale of gasoline, diesel fuel, or other motor fuel is separately stated, then, to the extent that the amount so stated is paid by the consumer (otherwise than in connection with the consumer's trade or business) to his seller, such amount shall be treated as a tax imposed on, and paid by such consumer. (c) Deduction denied in case of certain taxes. No deduction shall be allowed for the following taxes: (1) Taxes assessed against local benefits of a kind tending to increase the value of the property assessed; but this paragraph shall not prevent the deduction of so much of such taxes as is properly allocable to maintenance or interest charges. (2) Taxes on real property, to the extent that subsection (d) requires such taxes to be treated as imposed on another taxpayer. (d) Apportionment of taxes on real property between seller and purchaser. (1) General rule. For purposes of subsection (a), of real property is sold during any real property tax year, then (A) so much of the real property tax as is properly allocable to that part of such year which ends on the day before the date of the sale shall be treated as a tax imposed on the seller, and (B) so much of such tax as is properly allocable to that part of such year which begins on the date of the sale shall be treated as a tax imposed on the purchaser. (2) Special rules. (A) in the case of any sale of real property, if (i) a taxpayer may not, by reason of his method of accounting, deduct any amount for taxes unless paid, and (ii) the other party to the sale is (under the law imposing the real property tax) liable for the real property tax for the real property tax year, then for purposes of subsection (a) the taxpayer shall be treated as having paid, on the date of the sale, so much of such tax as, under paragraph (1) of this subsection, is treated as imposed on the taxpayer. For purposes of the preceding sentence, if neither party is liable for the tax, then the party holding the property at the time the tax becomes a lien on the property shall be considered liable for the real property tax for the real property tax year. (B) Paragraph (1) shall apply to taxable years ending after December 31, 1953, but only in the case of sales after December 31, 1953. (C) Paragraph (1) shall not apply to any real property tax, to the extent that such tax was allowable as a deduction under the Internal Revenue Code of 1939 to the seller for a taxable year which ended before January 1, 1954. (D) In the case of any sale of real property, if the taxpayer's taxable income for the taxable year during which the sale occurs is computed under an accrual method of accounting, and if no election under section 461 (c) (relating to the accrual of real property taxes) applies, then, for purposes of subsection (a), that portion of such tax which (i) is treated, under paragraph (1) of this subsection, as imposed on the taxpayer, and (ii) may not, by reason of the taxpayer's method of accounting, be deducted by the taxpayer for any taxable year, shall be treated as having accrued on the date of the sale. (e) Taxes of shareholder paid by corporation. Where a corporation pays a tax imposed on a shareholder on his interest as a shareholder, and where the shareholder does not reimburse the corporation, then (1) the deduction allowed by subsection (a) shall be allowed to the corporation; and (2) no deduction shall be allowed the shareholder for such tax. (f) Payments for municipal services in atomic energy communities. For purposes of this section, amounts paid or accrued, to compensate the Atomic Energy Commission for municipal-type services, by any owner of real property within any community (within the meaning of section 21b of the Atomic Energy Community Act of 1955) shall be treated as State real property taxes paid or accrued. For purposes of this subsection, the term "owner" includes a person who holds the real property under a leasehold of 40 or more years and a person who has entered into a contract to purchase under section 61 of the Atomic Energy Community Act of 1955. Subsection (d) of this section shall not apply to a sale by the United States of property with respect to which this subsection applies. (g) Cross references. (1) For provisions disallowing any deduction for the payment of the tax imposed by subchapter B of chapter 3 (relating to tax-free covenant bonds), see section 1451. (2) For provisions disallowing any deduction for certain taxes, see section 275. (Aug. 16, 1954, ch. 736, 68A Stat. 47; Sept. 2, 1958, Pub. L. 85-866, title I, § 6(a), 72 Stat. 1608; Feb. 26, 1964, Pub. L. 88-272, title II, § 207 (a), (b) (1), (2), 78 Stat. 40-42.) REFERENCES IN TEXT Section 21b and section 61 of the Atomic Energy Community Act of 1955, referred to in subsec. (f) of this section, are classified to sections 2304 (b) and 2361, respectively, of Title 42, The Public Health and Welfare. AMENDMENTS 1964 Subsec. (a). Pub. L. 88-272, § 207(a), limited the subsection to State, local and foreign real property, income, war profits, excess profits, and unspecified taxes, on a business or activity described in section 212, and to State and local personal property, general sales, gasoline, diesel fuel and other motor fuel taxes. Subsec. (b). Pub. L. 88-272, § 207(a), added subsec. (b), and omitted a prior subsec. (b) which de..ied the deduction for certain Federal income taxes, for Federal war profits and excess profits taxes, import duties, excise and stamp taxes, and estate, inheritance, legacy, succession and gift taxes, local assessments against benefits increasing property values, and certain taxes imposed by any foreign country or possession of the United States if the taxpayer chose to benefit by section 901 relating to foreign tax credit, and for taxes on real property to the extent that they are treated as imposed on another taxpayer. Subsec. (c). Pub. L. 88-272, § 207(a), substituted provisions denying the deduction for taxes assessed against local benefits which increase property value, except for so much as is properly allocable to maintenance or interest charges, and for real property taxes to the extent they are treated as imposed on another taxpayer, for provisions relating to certain retail sales taxes and gasoline taxes, the extent to which they were deductible, and to the definition of "State or local sales tax." Subsec. (f). Pub. L. 88-272, § 207(b) (1), inserted "State" preceding "real property taxes." Subsec. (g). Pub. L. 88-272, § 207(b)(2), designated existing provisions as par. (1), substituted "1451" for "1451 (f)" therein, and added par. (2). 1958 Subsec. (f). Pub. L. 85-866, § 6(a), added subsec. (f) and redesignated former subsec. (f) as (g). Subsec. (g). Pub. L. 85-866, § 6(a), redesignated former subsec. (f) as (g). EFFECTIVE DATE OF 1964 AMENDMENT Section 207(c) of Pub. L. 88–272 provided that: "(1) General rule.-Except as provided in paragraph (2), the amendments made by this section [adding section 275, and amending this section, and sections 535, 545(b)(1), 556(b)(1), 901 and 903 of this title] shall apply to taxable years beginning after December 31, 1963. "(2) Special taxing districts.-Section 164 (c)(1) of the Internal Revenue Code of 1954 (as amended by subsection (a)) shall not prevent the deduction under section 164 of such Code (as so amended) of taxes levied by a special taxing district which is described in section 164(b) (5) of such Code (as in effect for a taxable year ending on December 31, 1963) and which was in existence on December 31, 1963, for the purpose of retiring indebtedness existing on such date." EFFECTIVE DATE OF 1958 AMENDMENT Section 6 (b) of Pub. L. 85-866 provided that: "The amendments made by subsection (a) [to subsecs. (f) and (g) of this section] shall apply with respect to taxable years beginning after December 31, 1957." CROSS REFERENCES Carrying charges not deductible, see section 266 of this title. Federal employment taxes not deductible, see section 3502 (a) of this title. Limitation on deductions allowed to individuals in certain cases, see section 270 of this title. Nondeductibility of employment taxes in computing taxable income, see section 3502 of this title. Taxable year deduction to be taken, see section 461 of this title. Withholding tax not deductible by employer or employee, see section 3502 (b) of this title. § 165. Losses. (a) General rule. There shall be allowed as a deduction any loss sustained during the taxable year and not compensated for by insurance or otherwise. (b) Amount of deduction. For purposes of subsection (a), the basis for determining the amount of the deduction for any loss shall be the adjusted basis provided in section 1011 for determining the loss from the sale or other disposition of property. (c) Limitation on losses of individuals. In the case of an individual, the deduction under subsection (a) shall be limited to (1) losses incurred in a trade or business; (2) losses incurred in any transaction entered into for profit, though not connected with a trade or business; and (3) lossess of property not connected with a trade or business, if such losses arise from fire, storm, shipwreck, or other casualty, or from theft. A loss described in this paragraph shall be allowed only to the extent that the amount of loss to such individual arising from each casualty, or from each theft, exceeds $100. For purposes of the $100 limitation of the preceding sentence, a husband and wife making a joint return under section 6013 for the taxable year in which the loss is allowed as a deduction shall be treated as one individual. No loss described in this paragraph shall be allowed if, at the time of filing the return, such loss has been claimed for estate tax purposes in the estate tax return. (d) Wagering losses. Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions. (e) Theft losses. For purposes of subsection (a), any loss arising from theft shall be treated as sustained during the taxable year in which the taxpayer discovers such loss. (f) Capital losses. Losses from sales or exchanges of capital assets shall be allowed only to the extent allowed in sections 1211 and 1212. (g) Worthless securities. (1) General rule. If any security which is a capital asset becomes worthless during the taxable year, the loss resulting therefrom shall, for purposes of this subtitle, be treated as a loss from the sale or exchange, on the last day of the taxable year, of a capital asset. (2) Security defined. For purposes of this subsection, the term "security" means— (A) a share of stock in a corporation; (B) a right to subscribe for, or to receive, a share of stock in a corporation; or (C) a bond, debenture, note, or certificate, or other evidence of indebtedness, issued by a corporation or by a government or political subdivision thereof, with interest coupons or in registered form. (3) Securities in affiliated corporation. For purposes of paragraph (1), any security in a corporation affiliated with a taxpayer which is a domestic corporation shall not be treated as a capital asset. For purposes of the preceding sentence, a corporation shall be treated as affiliated with the taxpayer only if— (A) at least 95 percent of each class of its stock is owned directly by the taxpayer, and (B) more than 90 percent of the aggregate of its gross receipts for all taxable years has been from sources other than royalties, rents (except rents derived from rental of properties to employees of the corporation in the ordinary course of its operating business), dividends, interest (except interest received on deferred purchase price of operating assets sold), annuities, and gains from sales or exchanges of stocks and securities. In computing gross receipts for purposes of the preceding sentence, gross receipts from sales or exchanges of stocks and securities shall be taken into account only to the extent of gains therefrom. (h) Disaster losses. Notwithstanding the provisions of subsection (a), any loss (1) attributable to a disaster which occurs during the period following the close of the taxable year and on or before the time prescribed by law for filing the income tax return for the taxable year (determined without regard to any extension of time), and (2) occurring in an area subsequently determined by the President of the United States to warrant assistance by the Federal Government under sections 1855-1855g of title 42, at the election of the taxpayer, may be deducted for the taxable year immediately preceding the taxable year in which the disaster occurred. Such deduction shall not be in excess of so much of the loss as would have been deductible in the taxable year in which the casualty occurred. If an election is made under this subsection, the casualty resulting in the loss will be deemed to have occurred in the taxable year for which the deduction is claimed. (i) Certain property confiscated by the Government of Cuba. (1) Treatment as subsection (c)(3) loss. For purposes of this chapter, in the case of an individual who was a citizen of the United States, or a resident alien, on December 31, 1958, any loss of property which (A) was sustained by reason of the expropriation, intervention, seizure, or similar taking of the property, before January 1, 1964, by the government of Cuba, any political subdivision thereof, or any agency or instrumentality of the foregoing, and (B) was not a loss described in paragraph (1) or (2) of subsection (c), shall be treated as a loss to which paragraph (3) of subsection (c) applies. In the case of tangible property, the preceding sentence shall not apply unless the property was held by the taxpayer, and was located in Cuba, on December 31, 1958. (2) Special rules. (A) For purposes of subsection (a), any loss described in paragraph (1) shall be treated as having been sustained on October 14, 1960, unless it is established that the loss was sustained on some other day. (B) For purposes of subsection (a), the fair market value of property held by the taxpayer on December 31, 1958, to which paragraph (1) applies, on the day on which the loss of such property was sustained, shall be its fair market value on December 31, 1958. (C) For purposes of section 172, a loss described in paragraph (1) shall not be treated as an expropriation loss within the meaning of section 172(k). (D) For purposes of section 6601, the amount of any tax imposed by this tit'e shall not be reduced by virtue of this subsection for any period prior to February 26, 1964. (3) Refunds or credits. Notwithstanding any law or rule of law, refund or credit of any overpayment attributable to the application of paragraph (1) may be made or allowed if claim therefor is filed before January 1, 1965. No interest shall be allowed with respect to any such refund or credit for any period prior to February 26, 1964. (j) Cross references. (1) For special rule for banks with respect to worthless securities, see section 582. (2) For disallowance of deduction for worthlessness of securities to which subsection (g) (2) (C) applies, if issued by a political party or similar organization, see section 271. (3) For special rule for losses on stock in a small business investment company, see section 1242. (4) For special rule for losses of a small business investment company, see section 1243. (5) For special rule for losses on small business stock, see section 1244. (Aug. 16, 1954, ch. 736, 68A Stat. 49; Sept. 2, 1958, Pub. L. 85-866, title I, §§ 7, 57(c) (1), t'tle II, § 202 (a), 72 Stat. 1608, 1646, 1676; Mar. 31, 1962, Pub. L. 87-426, § 2(a), 76 Stat. 51; Feb. 26, 1964, Pub. L. 88272, title II, §§ 208(a), 238, 78 Stat. 43, 128; June 30, 1964, Pub. L. 88-348, § 3 (a), 78 Stat. 237.) AMENDMENTS 1964 Subsec. (c)(3). Pub. L. 88-272, § 208(a), inserted the requirement that losses must exceed $100 to be deductible. |