Internal Revenue Code · 26 U.S.C.
§ 1234B. Gains or losses from securities futures contracts
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. § 1234B
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 21, 2000 by Pub. L. 106–554
- Last amended
- October 4, 2004 by Pub. L. 108–311
- Amendments
- 2 dated changes in the source credit
- Length
- 6 subsections · 397 words · about 2 min to read
- Defines
- 1 term
- Cross-references
- cites 3; cited by 6 Code sections and 1 other regulation
Gain or loss attributable to the sale, exchange, or termination of a securities futures contract shall be considered gain or loss from the sale or exchange of property which has the same character as the property to which the contract relates has in the hands of the taxpayer (or would have in the hands of the taxpayer if acquired by the taxpayer).
Except as provided in the regulations under section 1092(b) or this section, or in section 1233, if gain or loss on the sale, exchange, or termination of a securities futures contract to sell property is considered as gain or loss from the sale or exchange of a capital asset, such gain or loss shall be treated as short-term capital gain or loss.
For purposes of this section, the term “securities futures contract” means any security future (as defined in section 3(a)(55)(A) of the Securities Exchange Act of 1934, as in effect on the date of the enactment of this section). The Secretary may prescribe regulations regarding the status of contracts the values of which are determined directly or indirectly by reference to any index which becomes (or ceases to be) a narrow-based security index (as defined for purposes of section 1256(g)(6)).
For purposes of this title, a securities futures contract shall not be treated as a commodity futures contract.
The Secretary shall prescribe such regulations as may be appropriate to provide for the proper treatment of securities futures contracts under this title.
For special rules relating to dealer securities futures contracts, see section 1256.
(Added Pub. L. 106–554, § 1(a)(7) [title IV, § 401(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–648; amended Pub. L. 107–147, title IV, § 412(d)(1)(B), (3)(B), Mar. 9, 2002, 116 Stat. 53, 54; Pub. L. 108–311, title IV, § 405(a)(1), Oct. 4, 2004, 118 Stat. 1188.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 1221(a) Capital asset defined
- § 1233 Gains and losses from short sales
- § 1256(g)(6) Section 1256 contracts marked to market
Cited by 6 Code sections
- § 1032(a) Exchange of stock for property
- § 1091(e)(2) Loss from wash sales of stock or securities
- § 1223(14) Holding period of property
- § 1233(e)(2)(D) Gains and losses from short sales
- § 1234A(1) Gains or losses from certain terminations
- § 1256(g)(9)(C) Section 1256 contracts marked to market
Cited in 1 regulation not issued under it
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 P Capital Gains and Losses
- Part IV SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES
Nearby sections
- § 1232–1232B Repealed
- § 1233 Gains and losses from short sales
- § 1234 Options to buy or sell
- § 1234A Gains or losses from certain terminations
- § 1234B Gains or losses from securities futures contracts
- § 1235 Sale or exchange of patents
- § 1236 Dealers in securities
- § 1237 Real property subdivided for sale
- § 1238 Repealed
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
Section 3(a)(55)(A) of the Securities Exchange Act of 1934, referred to in subsec. (c), is classified to section 78c(a)(55)(A) of Title 15, Commerce and Trade.
The date of the enactment of this section, referred to in subsec. (c), is the date of enactment of Pub. L. 106–554, which was approved Dec. 21, 2000.
Codification
Pub. L. 106–554, § 1(a)(7) [title IV, § 401(a)], which directed amendment of subpart IV of subchapter P of chapter 1 by adding this section after section 1234A, was executed by adding this section after 1234A of this part which is part IV of subchapter P of chapter 1, to reflect the probable intent of Congress.
Amendments
2004—Subsec. (c). Pub. L. 108–311 inserted at end “The Secretary may prescribe regulations regarding the status of contracts the values of which are determined directly or indirectly by reference to any index which becomes (or ceases to be) a narrow-based security index (as defined for purposes of section 1256(g)(6)).”
2002—Subsec. (a)(1). Pub. L. 107–147, § 412(d)(1)(B)(i), substituted “sale, exchange, or termination of a securities futures contract” for “sale or exchange of a securities futures contract”.
Subsec. (b). Pub. L. 107–147, § 412(d)(1)(B)(i), (3)(B), inserted “or in section 1233,” after “or this section,” and substituted “sale, exchange, or termination of a securities futures contract” for “sale or exchange of a securities futures contract”.
Subsec. (f). Pub. L. 107–147, § 412(d)(1)(B)(ii), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Pub. L. 108–311, title IV, § 405(b), Oct. 4, 2004, 118 Stat. 1189, provided that: “The amendments made by subsection (a) [amending this section and section 1256 of this title] shall take effect as if included in section 401 of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by section 1(a)(7) of Pub. L. 106–554, Dec. 21, 2000, 114 Stat. 2763, 2763A–587].”
Effective Date of 2002 Amendment
Amendment by Pub. L. 107–147 effective as if included in the provisions of the Community Renewal Tax Relief Act of 2000 [H.R. 5662, as enacted by Pub. L. 106–554], to which such amendment relates, see section 412(e) of Pub. L. 107–147, set out as a note under section 151 of this title.