Internal Revenue Code:Sec. 851. Definition of regulated investment company
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter M - Regulated Investment Companies and Real Estate
Investment Trusts
PART I - REGULATED INVESTMENT COMPANIES
Statute
Sec. 851. Definition of regulated investment company
(a) General rule
For purposes of this subtitle, the term ''regulated investment
company'' means any domestic corporation -
(1) which, at all times during the taxable year -
(A) is registered under the Investment Company Act of 1940,
as amended (15 U.S.C. 80a-1 to 80b-2) as a management company
or unit investment trust, or
(B) has in effect an election under such Act to be treated as
a business development company, or
(2) which is a common trust fund or similar fund excluded by
section 3(c)(3) of such Act (15 U.S.C. 80a-3(c)) from the
definition of ''investment company'' and is not included in the
definition of ''common trust fund'' by section 584(a).
(b) Limitations
A corporation shall not be considered a regulated investment
company for any taxable year unless -
(1) it files with its return for the taxable year an election
to be a regulated investment company or has made such election
for a previous taxable year;
(2) at least 90 percent of its gross income is derived from--
(A) dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5)), and
gains from the sale or other disposition of stock or
securities (as defined in section 2(a)(36) of the
Investment Company Act of 1940, as amended) or foreign
currencies, or other income (including but not limited
to gains from options, futures or forward contracts)
derived with respect to its business of investing in
such stock, securities, or currencies, and
(B) net income derived from an interest in a
qualified publicly traded partnership (as defined in
subsection (h)); and
(3) at the close of each quarter of the taxable year -
(A) at least 50 percent of the value of its total assets is
represented by -
(i) cash and cash items (including receivables), Government
securities and securities of other regulated investment
companies, and
(ii) other securities for purposes of this calculation
limited, except and to the extent provided in subsection (e),
in respect of any one issuer to an amount not greater in
value than 5 percent of the value of the total assets of the
taxpayer and to not more than 10 percent of the outstanding
voting securities of such issuer, and
(B) not more than 25 percent of the value of its
total assets is invested in--
(i) the securities (other than Government
securities or the securities of other regulated
investment companies) of any one issuer,
(ii) the securities (other than the
securities of other regulated investment
companies) of two or more issuers which the
taxpayer controls and which are determined, under
regulations prescribed by the Secretary, to be
engaged in the same or similar trades or
businesses or related trades or businesses, or
(iii) the securities of one or more
qualified publicly traded partnerships (as defined
in subsection (h)).''.
For purposes of paragraph (2), there shall be treated as dividends
amounts included in gross income under section 951(a)(1)(A)(i) or
1293(a) for the taxable year to the extent that, under section
959(a)(1) or 1293(c) (as the case may be), there is a distribution
out of the earnings and profits of the taxable year which are
attributable to the amounts so included. For purposes of paragraph
(2), the Secretary may by regulation exclude from qualifying income
foreign currency gains which are not directly related to the
company's principal business of investing in stock or securities
(or options and futures with respect to stock or securities). For
purposes of paragraph (2), amounts excludable from gross income
under section 103(a) shall be treated as included in gross income.
Income derived from a partnership (other than a qualified publicly
traded partnership as defined in subsection (h)) or trust shall be
treated as described in paragraph (2) only to the extent such income is
attributable to items of income of the partnership or trust (as the
case may be) which would be described in paragraph (2) if realized
by the regulated investment company in the same manner as realized
by the partnership or trust.
(c) Rules applicable to subsection (b)(3)
For purposes of subsection (b)(3) and this subsection -
(1) In ascertaining the value of the taxpayer's investment in
the securities of an issuer, for the purposes of subparagraph
(B), there shall be included its proper proportion of the
investment of any other corporation, a member of a controlled
group, in the securities of such issuer, as determined under
regulations prescribed by the Secretary.
(2) The term ''controls'' means the ownership in a corporation
of 20 percent or more of the total combined voting power of all
classes of stock entitled to vote.
(3) The term ''controlled group'' means one or more chains of
corporations connected through stock ownership with the taxpayer
if -
(A) 20 percent or more of the total combined voting power of
all classes of stock entitled to vote of each of the
corporations (except the taxpayer) is owned directly by one or
more of the other corporations, and
(B) the taxpayer owns directly 20 percent or more of the
total combined voting power of all classes of stock entitled to
vote, of at least one of the other corporations.
(4) The term ''value'' means, with respect to securities (other
than those of majority-owned subsidiaries) for which market
quotations are readily available, the market value of such
securities; and with respect to other securities and assets, fair
value as determined in good faith by the board of directors,
except that in the case of securities of majority-owned
subsidiaries which are investment companies such fair value shall
not exceed market value or asset value, whichever is higher.
(5) The term `outstanding voting securities of such
issuer' shall include the equity securities of a qualified
publicly traded partnership (as defined in subsection (h)).
(6) All other terms shall have the same meaning as when used in
the Investment Company Act of 1940, as amended.
(d) Determination of status
A corporation which meets the requirements of subsections (b)(3)
and (c) at the close of any quarter shall not lose its status as a
regulated investment company because of a discrepancy during a
subsequent quarter between the value of its various investments and
such requirements unless such discrepancy exists immediately after
the acquisition of any security or other property and is wholly or
partly the result of such acquisition. A corporation which does
not meet such requirements at the close of any quarter by reason of
a discrepancy existing immediately after the acquisition of any
security or other property which is wholly or partly the result of
such acquisition during such quarter shall not lose its status for
such quarter as a regulated investment company if such discrepancy
is eliminated within 30 days after the close of such quarter and in
such cases it shall be considered to have met such requirements at
the close of such quarter for purposes of applying the preceding
sentence.
(e) Investment companies furnishing capital to development
corporations
(1) General rule
If the Securities and Exchange Commission determines, in
accordance with regulations issued by it, and certifies to the
Secretary not earlier than 60 days prior to the close of the
taxable year of a management company or a business development
company described in subsection (a)(1), that such investment
company is principally engaged in the furnishing of capital to
other corporations which are principally engaged in the
development or exploitation of inventions, technological
improvements, new processes, or products not previously generally
available, such investment company may, in the computation of 50
percent of the value of its assets under subparagraph (A) of
subsection (b)(3) for any quarter of such taxable year, include
the value of any securities of an issuer, whether or not the
investment company owns more than 10 percent of the outstanding
voting securities of such issuer, the basis of which, when added
to the basis of the investment company for securities of such
issuer previously acquired, did not exceed 5 percent of the value
of the total assets of the investment company at the time of the
subsequent acquisition of securities. The preceding sentence
shall not apply to the securities of an issuer if the investment
company has continuously held any security of such issuer (or of
any predecessor company of such issuer as determined under
regulations prescribed by the Secretary) for 10 or more years
preceding such quarter of such taxable year.
(2) Limitation
The provisions of this subsection shall not apply at the close
of any quarter of a taxable year to an investment company if at
the close of such quarter more than 25 percent of the value of
its total assets is represented by securities of issuers with
respect to each of which the investment company holds more than
10 percent of the outstanding voting securities of such issuer
and in respect of each of which or any predecessor thereof the
investment company has continuously held any security for 10 or
more years preceding such quarter unless the value of its total
assets so represented is reduced to 25 percent or less within 30
days after the close of such quarter.
(3) Determination of status
For purposes of this subsection, unless the Securities and
Exchange Commission determines otherwise, a corporation shall be
considered to be principally engaged in the development or
exploitation of inventions, technological improvements, new
processes, or products not previously generally available, for at
least 10 years after the date of the first acquisition of any
security in such corporation or any predecessor thereof by such
investment company if at the date of such acquisition the
corporation or its predecessor was principally so engaged, and an
investment company shall be considered at any date to be
furnishing capital to any company whose securities it holds if
within 10 years prior to such date it has acquired any of such
securities, or any securities surrendered in exchange therefor,
from such other company or predecessor thereof. For purposes of
the certification under this subsection, the Securities and
Exchange Commission shall have authority to issue such rules,
regulations and orders, and to conduct such investigations and
hearings, either public or private, as it may deem appropriate.
(4) Definitions
The terms used in this subsection shall have the same meaning
as in subsections (b)(3) and (c) of this section.
(f) Certain unit investment trusts
For purposes of this title -
(1) A unit investment trust (as defined in the Investment
Company Act of 1940) -
(A) which is registered under such Act and issues periodic
payment plan certificates (as defined in such Act) in one or
more series,
(B) substantially all of the assets of which, as to all such
series, consist of (i) securities issued by a single management
company (as defined in such Act) and securities acquired
pursuant to subparagraph (C), or (ii) securities issued by a
single other corporation, and
(C) which has no power to invest in any other securities
except securities issued by a single other management company,
when permitted by such Act or the rules and regulations of the
Securities and Exchange Commission,
shall not be treated as a person.
(2) In the case of a unit investment trust described in
paragraph (1) -
(A) each holder of an interest in such trust shall, to the
extent of such interest, be treated as owning a proportionate
share of the assets of such trust;
(B) the basis of the assets of such trust which are treated
under subparagraph (A) as being owned by a holder of an
interest in such trust shall be the same as the basis of his
interest in such trust; and
(C) in determining the period for which the holder of an
interest in such trust has held the assets of the trust which
are treated under subparagraph (A) as being owned by him, there
shall be included the period for which such holder has held his
interest in such trust.
This subsection shall not apply in the case of a unit investment
trust which is a segregated asset account under the insurance laws
or regulations of a State.
(g) Special rule for series funds
(1) In general
In the case of a regulated investment company (within the
meaning of subsection (a)) having more than one fund, each fund
of such regulated investment company shall be treated as a
separate corporation for purposes of this title (except with
respect to the definitional requirement of subsection (a)).
(2) Fund defined
For purposes of paragraph (1) the term ''fund'' means a
segregated portfolio of assets, the beneficial interests in which
are owned by the holders of a class or series of stock of the
regulated investment company that is preferred over all other
classes or series in respect of such portfolio of assets.
(h) Qualified Publicly Traded Partnership.--For purposes of this
section, the term `qualified publicly traded partnership' means a
publicly traded partnership described in section 7704(b) other than a
partnership which would satisfy the gross income requirements of section
7704(c)(2) if qualifying income included only income described in
subsection (b)(2)(A).
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 268; Pub. L. 85-866, title I,
Sec. 38, Sept. 2, 1958, 72 Stat. 1638; Pub. L. 91-172, title IX,
Sec. 908(a), Dec. 30, 1969, 83 Stat. 717; Pub. L. 94-12, title VI,
Sec. 602(a)(2), Mar. 29, 1975, 89 Stat. 58; Pub. L. 94-455, title
XIX, Sec. 1901(a)(109), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
1783, 1834; Pub. L. 95-345, Sec. 2(a)(3), Aug. 15, 1978, 92 Stat.
481; Pub. L. 95-600, title VII, Sec. 701(s)(1), Nov. 6, 1978, 92
Stat. 2911; Pub. L. 97-424, title V, Sec. 547(b)(1), Jan. 6, 1983,
96 Stat. 2199; Pub. L. 98-369, div. A, title X, Sec. 1071(a)(1),
July 18, 1984, 98 Stat. 1049; Pub. L. 99-514, title VI, Sec.
652(a), (b), 653(a)-(c), 654(a), title XII, Sec. 1235(f)(3), Oct.
22, 1986, 100 Stat. 2297, 2298, 2575; Pub. L. 100-647, title I,
Sec. 1006(m), (n)(1), (2)(A), (B), (4), (5), (o), Nov. 10, 1988,
102 Stat. 3415, 3416; Pub. L. 105-34, title XII, Sec.
1271(a)-(b)(7), Aug. 5, 1997, 111 Stat. 1036, 1037.)
References in Text
REFERENCES IN TEXT
The Investment Company Act of 1940, as amended, referred to in
subsecs. (a)(1), (b)(2), (c)(5), and (f)(1), is title I of act Aug.
22, 1940, ch. 686, 54 Stat. 789, as amended, which is classified
generally to subchapter I (Sec. 80a-1 et seq.) of chapter 2D of
Title 15, Commerce and Trade. Section 2(a)(36) of the Act is
classified to section 80a-2(a)(36) of Title 15. For complete
classification of this Act to the Code, see section 80a-51 of Title
15 and Tables.
Miscellaneous
AMENDMENTS
2004 - Pub. L. 108-357, Sec. 331. Paragraph (2) of section 851(b)
(defining regulated investment company) is amended by striking
para. (2) and inserting a new para. (2); The last sentence of
section 851(b) is amended by inserting ``(other than a qualified
publicly traded partnership as defined in subsection (h))'' after
``derived from a partnership''; Subsection (c) of section 851 is
amended by redesignating paragraph (5) as paragraph (6) and inserting
after paragraph (4) the new paragraph (5); Section 851 is amended
by adding at the end the following new subsection: "(h) Qualified
Publicly Traded Partnership"; Subparagraph (B) of section 851(b)(3)
is amended by inserting a new subparagraph (b).
1997 - Subsec. (b). Pub. L. 105-34, Sec. 1271(b)(1), in
concluding provisions, substituted ''paragraph (2), amounts
excludable'' for ''paragraphs (2) and (3), amounts excludable'' and
struck out ''In the case of the taxable year in which a regulated
investment company is completely liquidated, there shall not be
taken into account under paragraph (3) any gain from the sale,
exchange, or distribution of any property after the adoption of the
plan of complete liquidation.'' at end.
Subsec. (b)(2). Pub. L. 105-34, Sec. 1271(a), inserted ''and'' at
end.
Subsec. (b)(3), (4). Pub. L. 105-34, Sec. 1271(a), redesignated
par. (4) as (3) and struck out former par. (3) which read as
follows: ''less than 30 percent of its gross income is derived from
the sale or disposition of any of the following which was held for
less than 3 months:
''(A) stock or securities (as defined in section 2(a)(36) of
the Investment Company Act of 1940, as amended),
''(B) options, futures, or forward contracts (other than
options, futures, or forward contracts on foreign currencies), or
''(C) foreign currencies (or options, futures, or forward
contracts on foreign currencies) but only if such currencies (or
options, futures, or forward contracts) are not directly related
to the company's principal business of investing in stock or
securities (or options and futures with respect to stocks or
securities), and''.
Subsec. (c). Pub. L. 105-34, Sec. 1271(b)(2), substituted
''subsection (b)(3)'' for ''subsection (b)(4)'' in heading and
introductory provisions.
Subsec. (d). Pub. L. 105-34, Sec. 1271(b)(3), substituted
''subsections (b)(3)'' for ''subsections (b)(4)''.
Subsec. (e)(1). Pub. L. 105-34, Sec. 1271(b)(4), substituted
''subsection (b)(3)'' for ''subsection (b)(4)''.
Subsec. (e)(4). Pub. L. 105-34, Sec. 1271(b)(5), substituted
''subsections (b)(3)'' for ''subsections (b)(4)''.
Subsec. (g). Pub. L. 105-34, Sec. 1271(b)(6), redesignated
subsec. (h) as (g) and struck out former subsec. (g) which provided
for treatment of certain hedging transactions.
Subsec. (g)(3). Pub. L. 105-34, Sec. 1271(b)(7), struck out par.
(3) which provided special rule for abnormal redemptions.
Subsec. (h). Pub. L. 105-34, Sec. 1271(b)(6), redesignated
subsec. (h) as (g).
1988 - Subsec. (a)(1). Pub. L. 100-647, Sec. 1006(m)(1), amended
par. (1) generally. Prior to amendment, par. (1) read as follows:
''which, at all times during the taxable year, is registered under
the Investment Company Act of 1940, as amended (15 U.S.C. 80a-1 to
80b-2), as a management company, business development company, or
unit investment trust, or''.
Subsec. (b). Pub. L. 100-647, Sec. 1006(n)(1), (5), inserted at
end ''Income derived from a partnership or trust shall be treated
as described in paragraph (2) only to the extent such income is
attributable to items of income of the partnership or trust (as the
case may be) which would be described in paragraph (2) if realized
by the regulated investment company in the same manner as realized
by the partnership or trust. In the case of the taxable year in
which a regulated investment company is completely liquidated,
there shall not be taken into account under paragraph (3) any gain
from the sale, exchange, or distribution of any property after the
adoption of the plan of complete liquidation.''
Pub. L. 100-647, Sec. 1006(n)(2)(B), substituted ''which are not
directly related'' for ''which are not ancillary'' in last
sentence.
Subsec. (b)(3). Pub. L. 100-647, Sec. 1006(n)(2)(A), amended par.
(3) generally. Prior to amendment, par. (3) read as follows:
''less than 30 percent of its gross income is derived from the sale
or other disposition of stock or securities held for less than 3
months; and''.
Subsec. (e)(1). Pub. L. 100-647, Sec. 1006(m)(2), substituted ''a
management company or a business development company described in
subsection (a)(1)'' for ''a registered management company or
registered business development company''.
Subsec. (g)(2)(A)(i). Pub. L. 100-647, Sec. 1006(n)(4),
substituted ''contractual obligation'' for ''contractual option''.
Subsec. (h). Pub. L. 100-647, Sec. 1006(o)(1), redesignated
subsec. (q) as (h).
Subsec. (h)(3). Pub. L. 100-647, Sec. 1006(o)(2), added par. (3).
Subsec. (q). Pub. L. 100-647, Sec. 1006(o)(1), redesignated
subsec. (q) as (h).
1986 - Subsec. (a)(1). Pub. L. 99-514, Sec. 652(a), substituted
''as a management company, business development company, or unit
investment trust'' for ''either as a management company or as a
unit investment trust''.
Subsec. (b). Pub. L. 99-514, Sec. 1235(f)(3), inserted ''or
1293(a)'' and ''or 1293(c) (as the case may be)'', in concluding
provision.
Pub. L. 99-514, Sec. 653(c), inserted before last sentence ''For
purposes of paragraph (2), the Secretary may by regulation exclude
from qualifying income foreign currency gains which are not
ancillary to the company's principal business of investing in stock
or securities (or options and futures with respect to stock or
securities).''
Subsec. (b)(2). Pub. L. 99-514, Sec. 653(b), inserted ''(as
defined in section 2(a)(36) of the Investment Company Act of 1940,
as amended) or foreign currencies, or other income (including but
not limited to gains from options, futures, or forward contracts)
derived with respect to its business of investing in such stock,
securities, or currencies''.
Subsec. (e)(1). Pub. L. 99-514, Sec. 652(b), substituted
''registered management company or registered business development
company'' for ''registered management company''.
Subsec. (g). Pub. L. 99-514, Sec. 653(a), added subsec. (g).
Subsec. (q). Pub. L. 99-514, Sec. 654(a), added subsec. (q).
1984 - Subsec. (a). Pub. L. 98-369 struck out ''(other than a
personal holding company as defined in section 542)'' after ''any
domestic corporation'' in introductory provisions.
1983 - Subsec. (b). Pub. L. 97-424 substituted ''section 103(a)''
for ''section 103(a)(1)'' after ''gross income under''.
1978 - Subsec. (b). Pub. L. 95-600 required that for purposes of
pars. (2) and (3), amounts excludable from gross income under
section 103(a)(1) shall be treated as included in gross income.
Subsec. (b)(2). Pub. L. 95-345 inserted provision relating to
payments with respect to securities loans.
1976 - Subsec. (a)(1). Pub. L. 94-455, Sec. 1901(a)(109)(A),
struck out ''54 Stat. 789;'' before ''15 U.S.C. 80a-1 to 80b-2)''.
Subsec. (b)(1), (4)(B). Pub. L. 94-455, Sec. 1901(a)(109)(B),
struck out ''which began after December 31, 1941'' after ''previous
taxable year'' in par. (1), and ''or his delegate'' after
''Secretary'' in par. (4)(B).
Subsecs. (c), (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out ''or his delegate'' after ''Secretary'' wherever appearing.
1975 - Subsec. (b). Pub. L. 94-12 inserted provisions directing
that, for purposes of par. (2), there shall be treated as dividends
amounts included in gross income under section 951(a)(1)(A)(i) for
the taxable year to the extent that, under section 959(a)(1), there
is a distribution out of earnings and profits of the taxable year
which are attributable to the amounts so included.
1969 - Subsec. (f). Pub. L. 91-172 added subsec. (f).
1958 - Subsec. (e)(1). Pub. L. 85-866, Sec. 38(a), substituted
''not earlier than 60 days'' for ''not less than 60 days'' in first
sentence.
Subsec. (e)(2). Pub. L. 85-866, Sec. 38(b), substituted
''issuer'' for ''issues''.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to taxable years beginning
after Aug. 5, 1997, see section 1271(c) of Pub. L. 105-34, set out
as a note under section 817 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1006(n)(2)(C) of Pub. L. 100-647 provided that:
''Subparagraph (C) of section 851(b)(3) of the 1986 Code (as
amended by subparagraph (A)), and the amendment made by
subparagraph (B) (amending this section), shall apply to taxable
years beginning after the date of the enactment of this Act (Nov.
10, 1988).''
Amendment by section 1006(m), (n)(1), (2)(A), (4), (5), (o) of
Pub. L. 100-647 effective, except as otherwise provided, as if
included in the provision of the Tax Reform Act of 1986, Pub. L.
99-514, to which such amendment relates, see section 1019(a) of
Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 652(c) of Pub. L. 99-514 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1986.''
Section 653(d) of Pub. L. 99-514 provided that: ''The amendments
made by this section (amending this section) shall apply to taxable
years beginning after the date of the enactment of this Act (Oct.
22, 1986).''
Section 654(b) of Pub. L. 99-514 provided that:
''(1) In general. - The amendment made by subsection (a)
(amending this section) shall apply to taxable years beginning
after the date of the enactment of this Act (Oct. 22, 1986).
''(2) Treatment of certain existing series funds. - In the case
of a regulated investment company which has more than one fund on
the date of the enactment of this act, and has before such date
been treated for Federal income tax purposes as a single
corporation -
''(A) the amendment made by subsection (a), and the resulting
treatment of each fund as a separate corporation, shall not give
rise to the realization or recognition of income or loss by such
regulated investment company, its funds, or its shareholders, and
''(B) the tax attributes of such regulated investment company
shall be appropriately allocated among its funds.''
Amendment by section 1235(f)(3) of Pub. L. 99-514 applicable to
taxable years of foreign corporations beginning after Dec. 31,
1986, see section 1235(h) of Pub. L. 99-514, set out as an
Effective Date note under section 1291 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxable years beginning
after Dec. 31, 1982, with certain exceptions, see section
1071(a)(5) of Pub. L. 98-369, set out as a note under section 852
of this title.
EFFECTIVE DATE OF 1978 AMENDMENTS
Section 701(s)(3) of Pub. L. 95-600 provided that: ''The
amendments made by this section (amending this section and section
852 of this title) shall apply to taxable years beginning after
December 31, 1975.''
Amendment by Pub. L. 95-345 applicable with respect to amounts
received after Dec. 31, 1976, as payments with respect to
securities loans (as defined in section 512(a)(5) of this title),
and transfers of securities, under agreements described in section
1058 of this title, occurring after such date, see section 2(e) of
Pub. L. 95-345, set out as a note under section 509 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1901(a)(109) of Pub. L. 94-455 effective for
taxable years beginning after Dec. 31, 1976, see section 1901(d) of
Pub. L. 94-455, set out as a note under section 2 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-12 applicable to taxable years of foreign
corporations beginning after Dec. 31, 1975, and to taxable years of
United States shareholders (within the meaning of section 951(b) of
this title) within which or with which such taxable years of such
foreign corporations end, see section 602(f) of Pub. L. 94-12, set
out as an Effective Date note under section 955 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Section 908(b) of Pub. L. 91-172 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years of unit investment trusts ending after December 31,
1968, and to taxable years of holders of interests in such trusts
ending with or within such taxable years of such trusts. The
enactment of this section shall not be construed to result in the
realization of gain or loss by any unit investment trust or by any
holder of an interest in a unit investment trust.''
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 applicable to taxable years beginning
after Dec. 31, 1953, and ending after Aug. 16, 1954, see section
1(c)(1) of Pub. L. 85-866, set out as a note under section 165 of
this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 11, 50B, 403, 817, 852,
853, 860L, 992, 1212, 1247, 1296, 7603, 7704 of this title; title
42 section 1395nn.
