73d CONGRESS . SESS . II. CH. 277. MAY 10, 1934 .
715 in whole or in part in his hands as it would have in the hand s of such other person. (3) In determining the period for which the taxpayer has held st ock or secu ritie s rece ived upon a distribution where no gain was recognized to the distributee under the provisions of section 112(g) of the Re ve nue Act of 19 28 or the Re ven ue Act of 19 32, there shall be included the p eriod for w hich he held the stoc k or securities in the distributing corporation prior to the receipt of the stock or securities upon such distribution . (4) In determining the period for which the taxpayer has held stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility (under section 118 of this Act or section 118 of the Revenue Act of 1928 or the Revenue Act of 1932, relating to wash sales) of the loss from the sale or other disposition of substantially identical stock or securities, there shall be included the period for which he held the stock or securities the loss from the sale or other disposition of which was not deductible . (d) L IMIT ATIO N ON CAPI TAL LosSES .-Losses from sales or exchanges of capital assets shall be allowed only to the extent of $2,000 plus the gains from such sales or exchanges . If a b ank or trust company incorporated under the laws of the United States or of any State or Territory, a substantial part of whose business is the receipt of deposits, sells any bond, debenture, note, or cer- tificate or other evidence of indebtedness issued by any corporation (including one issued by a government or political subdivision thereof), wi th interest coupons or in registered form, any lo ss resulting from such sale (except such portion of the loss as does not exceed the amount, if any, by which the adjusted basis of such instrument exceeds the par or face value thereof) shall not be subjec t to the foregoing limitation and shall not be included in determining the applicability of such limitation to other losses . (e) G AINS AND LOSSES FROM SHO RT SALES, ETc .-For the purp ose Gains and losses from of this title-
short sales, etc . (1) gains or losses from short sales of property shall be con- er Transactions consid- sidere d as gains or lo sses from sales or exchanges of capital assets ; and (2) gains or losses attributable to the failure to exercise privi- leges or options to buy or sell property shall be considered as gains or losses from sales or exchanges of capital assets held for one year or less . (f) RETIREMENT OF BONDS, ETC .-For the purposes of this title, Retirement of bonds, amounts received by the holder upon the retirement of bonds, deben- et c' tures, notes, or certificates or other evidences of indebtedness issued by any co rpor atio n (i nclu ding tho se issued by a g over nmen t or political subdivision thereof), with interest coupons or in registered form, shall be considered as amounts received in exchange therefor . SE C. 118 . LOSS FROM WASH SALES OF STOCK OR SECURITIES .
Loss from wash sales of stock, etc . (a) In the case of any loss claimed to have been sustained from Restriction on claim any sale or other disposition of shares of stock or securities where acquired edt substantial y it appears that, within a period beginning 30 days before the date 30 days identical stock within of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange upon which the entire amount of gain or loss was r ecogn ized by law), or has entered into a contract or option so to acquire, substantially identi- cal stock or securities, then no deduction for the loss shall be allowed under section 23 (e) (2)
nor shall such deduction be allowed under Allow a pn~io section 23(f) unless the claim is made by a corporation, a dealer poration. INCOME TAX . COMPUTATION OF NET INCOME- Contd . Stock, etc ., received on a distribution . Vol.45, p. 818. Comput ing period stock has been held . Vol . 45, p. 826. Ca pital lossesa llowed only to extent of gains, etc . a cor-
