Treasury Regulations · 26 CFR
§ 1.475(a)-3. Acquisition by a dealer of a security with a substituted basis.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 475(a)
Cite as 26 CFR § 1.475(a)-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- December 24, 1996 by T.D. 8700
- Issued under
- 26 U.S.C. § 475(a)
- Length
- 212 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 2
¶(a) Scope. This section applies if—
¶(b) Rules. If this section applies to a security—
¶(2) Any built-in gain or loss with respect to the security (based on the difference between the fair market value of the security on the date the dealer acquired it and its basis to the dealer on that date) is taken into account at the time, and has the character, provided by the sections of the Internal Revenue Code that would apply to the built-in gain or loss if section 475(a) did not apply to the security.
[T.D. 8700, 61 FR 67720, Dec. 24, 1996]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Cited by 2 other regulations
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 8700 (61 FR 67720)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Inventories
Nearby sections
- § 1.472-6 Change from LIFO inventory method.
- § 1.472-7 Inventories of acquiring corporations.
- § 1.472-8 Dollar-value method of pricing LIFO inventories.
- § 1.475-0 Table of contents.
- § 1.475(a)-3 Acquisition by a dealer of a security with a substituted basis.
- § 1.475(a)-4 Valuation safe harbor.
- § 1.475(b)-1 Scope of exemptions from mark-to-market requirement.
- § 1.475(b)-2 Exemptions—identification requirements.
- § 1.475(c)-1 Definitions—dealer in securities.