Internal Revenue Code · 26 U.S.C.
§ 1045. Rollover of gain from qualified small business stock to another qualified small business stock
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1045
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- August 5, 1997 by Pub. L. 105–34
- Last amended
- July 22, 1998 by Pub. L. 105–206
- Amendments
- 1 dated changes in the source credit
- Length
- 2 subsections · 373 words · about 2 min to read
- Defines
- 1 term
- Cross-references
- cites 3; cited by 1 Code section and 0 other regulations
- Regulations
- 1 issued under this section
The term “qualified small business stock” has the meaning given such term by section 1202(c).
A taxpayer shall be treated as having purchased any property if, but for paragraph (3), the unadjusted basis of such property in the hands of the taxpayer would be its cost (within the meaning of section 1012).
If gain from any sale is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any qualified small business stock which is purchased by the taxpayer during the 60-day period described in subsection (a).
Rules similar to the rules of subsections (f), (g), (h), (i), (j), and (k) of section 1202 shall apply.
(Added Pub. L. 105–34, title III, § 313(a), Aug. 5, 1997, 111 Stat. 841; amended Pub. L. 105–206, title VI, § 6005(f), July 22, 1998, 112 Stat. 806.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 1045
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 1202(c) Partial exclusion for gain from certain small business stock
- § 1012 Basis of property—cost
- § 1223 Holding period of property
Cited by 1 Code section
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter O Gain or Loss on Disposition of Property
- Part III COMMON NONTAXABLE EXCHANGES
Nearby sections
- § 1041 Transfers of property between spouses or incident to divorce
- § 1042 Sales of stock to employee stock ownership plans or certain cooperatives
- § 1043 Sale of property to comply with conflict-of-interest requirements
- § 1044 Repealed
- § 1045 Rollover of gain from qualified small business stock to another qualified small business stock
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1998—Subsec. (a). Pub. L. 105–206, § 6005(f)(1), in introductory provisions, substituted “a taxpayer other than a corporation” for “an individual” and “such taxpayer” for “such individual”.
Subsec. (b)(5). Pub. L. 105–206, § 6005(f)(2), added par. (5).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Effective Date
Section applicable to sales after Aug. 5, 1997, see section 313(c) of Pub. L. 105–34, set out as an Effective Date of 1997 Amendment note under section 1016 of this title.