§1232 — [§§1232 to 1232B. Repealed. Pub. L. 98–369, div. A, title I, §42(a)(1), July 18, 1984, 98 Stat. 556 ] Section 1232, acts Aug. 16, 1954, ch. 736, 68A Stat. 326 ; Sept. 2, 1958, Pub. L. 85–866, title I, §§50(a), 51, 72 Stat. 1642 , 1643; June 25, 1959, Pub. L. 86–69, §3(e), 73 Stat. 140 ; Sept. 2, 1964, Pub. L. 88–563, §5, 78 Stat. 845 ; Dec. 30, 1969, Pub. L. 91–172, title IV, §413(a), (b), 83 Stat. 609 , 611; Oct. 4, 1976, Pub. L. 94–455, title XIV, §1402(b)(1)(S), (2), title XIX, §§1901(b)(3)(I), (14)(D), 1904(b)(10)(C), 90 Stat. 1732 , 1793, 1796, 1817; Aug. 13, 1981, Pub. L. 97–34, title V, §505(b), 95 Stat. 331 ; Sept. 3, 1982, Pub. L. 97–248, title II, §§231(c), 232(b), title III, §310(b)(6), 96 Stat. 499 , 501, 599; Jan. 12, 1983, Pub. L. 97–448, title III, §306(a)(9)(B), (C)(i), (ii), 96 Stat. 2403 , 2404; July 18, 1984, Pub. L. 98–369, div. A, title X, §1001(b)(16), (d), (e), 98 Stat. 1012 , related to bonds and other evidences of indebtedness. See section 1271 et seq. of this title.

57 cases·6 followed·9 distinguished·1 questioned·2 criticized·1 overruled·38 cited—11% support

Statute Text — 26 U.S.C. §1232

Statute text not available for this section.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.1232-1 Bonds and other evidences of indebtedness; scope of section
Treas. Reg. §Treas. Reg. §1.1232-1(a) In general.
Treas. Reg. §Treas. Reg. §1.1232-1(b) Requirement that obligations be capital assets.
Treas. Reg. §Treas. Reg. §1.1232-1(c) Face-amount certificates—(1) In general.
Treas. Reg. §Treas. Reg. §1.1232-1(d) Certain deposits in financial institutions.
Treas. Reg. §Treas. Reg. §1.1232-3 Gain upon sale or exchange of obligations issued at a discount after December 31, 1954
Treas. Reg. §Treas. Reg. §1.1232-3(a) §1.1232-3(a)
Treas. Reg. §Treas. Reg. §1.1232-3(b) Circumstances indicating absence of understanding.
Treas. Reg. §Treas. Reg. §1.1232-3(c) Gain treated as ordinary income in certain cases; computation.
Treas. Reg. §Treas. Reg. §1.1232-3(d) Exceptions to the general rule—(1) In general.
Treas. Reg. §Treas. Reg. §1.1232-3(e) Amounts previously includible in income.
Treas. Reg. §Treas. Reg. §1.1232-3(f) Recordkeeping requirements.
Treas. Reg. §Treas. Reg. §1.1232-3(i) §1.1232-3(i)
Treas. Reg. §Treas. Reg. §1.1232-3A Inclusion as interest of original issue discount on certain obligations issued after May 27, 1969
Treas. Reg. §Treas. Reg. §1.1232-3A(a) §1.1232-3A(a)
Treas. Reg. §Treas. Reg. §1.1232-3A(b) Equal to the average rate credited for the preceding 5 calendar years on a similar account.
Treas. Reg. §Treas. Reg. §1.1232-3A(c) §1.1232-3A(c)
Treas. Reg. §Treas. Reg. §1.1232-3A(d) The stated redemption price at maturity is the sum of the amount of such contingent interest plus any interest to be earned thereon at the guaranteed minimum rate of compound interest between such dates of original issue and maturity.
Treas. Reg. §Treas. Reg. §1.1232-3A(e) Application of section 1232 to certain deposits in financial institutions and similar arrangements—(1) In general.
Treas. Reg. §Treas. Reg. §1.1232-3A(f) Application of section 1232(a)(3) to face-amount certificates—(1) In general.

57 Citing Cases

Thomas J. & Anne F. Gaffney, Petitioner T.C. Memo. 1997-249 · 1997

This requirement was carried forward as former section 1232A(a)(1) by the Tax Equity and Fiscal Responsibility Act of 1982, Pub.

Dewayne Bridges, Petitioner · 2020

1232(a), 111 Stat. at 1023, to help alleviate the problem. See Bedrosian v. Commissioner, 143 T.C. at 104- 107. The provision was intended as a reliefprovision for the Commissioner in situations where he has difficulty determining whether a partnership is subject to TEFRA. The House Ways and Means Committee Report makes this clear, where 5Sec.

John C. Bedrosian & Judith D. Bedrosian, Petitioners · 2014

sion over whether TEFRA applied to the adjustments at issue. B. Section 6231(g) Congress was aware ofthe problem ofdetermining whether TEFRA applies, and it enacted section 6231(g) as part ofthe TaxpayerReliefAct of 1997, Pub. L. - 37 - No. 105-34, sec. 1232(a), 111 Stat. at 1023, in an attempt to address the problem. Section 6231(g) provides: SEC. 6231(g). Partnership Return To Be Determinative of Whether Subchapter Applies.-- (1) Determination that subchapter applies.--If, on the basis ofa par

Jimastowlo Oil LLC, John J. Petito, Tax Matters Partner, Petitioners T.C. Memo. 2013-195 · 2013

1232(a), 111 Stat. at 1023. Both the statutory language and the House Ways and Means Committee Report7 make clear that the intent ofthe provision was to alleviate the Commissioner's difficulties in determining "whether to follow the TEFRA partnership procedures or the regular deficiency procedures", a problem generally caused by the inability

Oil Coming We Are Humming, LLC, John J. Petito, Tax Matters Partner, Petitioners T.C. Memo. 2013-195 · 2013

Joseph R. Posluns, Petitioner T.C. Memo. 2012-332 · 2012

1232g (2006), or national security concerns., . PINION Preliminary Matters r In the petition and prior to trial, petitioner contended that the.notice of deficiency is invalid because it was issued after he had submitted an amended return recharacterizingthe.disputed (cid:16)040ehicletr,avel, and other expenses as employee expenses rather than

Chicago Tribune Co. v. Board of Trustees of the University of Illinois 680 F.3d 1001 · Cir.

Phoenix Mutual Life Insurance v. Commissioner 96 T.C. 481 · 1991

Prudential Insurance Co. of America v. Commissioner 90 T.C. 36 · 1988

International Telephone & Telegraph Corp. v. Commissioner 77 T.C. 60 · 1981

Dennis v. Commissioner 57 T.C. 352 · 1971

Edwards v. Commissioner 50 T.C. 220 · 1968

Sherwood Memorial Gardens, Inc. v. Commissioner 42 T.C. 211 · 1964

Leavin v. Commissioner 37 T.C. 766 · 1962

Agency of Canadian Car & Foundry Co. v. Commissioner 39 T.C. 15 · 1962

Gibbons v. Commissioner 37 T.C. 569 · 1961

Bolnick v. Commissioner 44 T.C. 245 · 1965

Wilson v. Commissioner 51 T.C. 723 · 1969

Segel v. Commissioner 89 T.C. 816 · 1987

Golden Nugget, Inc. v. Commissioner 83 T.C. 28 · 1984

Humacid Co. v. Commissioner 42 T.C. 894 · 1964

Miller v. Commissioner 32 T.C. 954 · 1959

United States v. Miami University Ohio State University, the Chronicle of Higher Education, Intervening 294 F.3d 797 · Cir.

Ontario Power Generation, Inc. v. United States v. Mingo Logan Coal Co., Ashland Coal, Inc., and Arch Coal Sales, Inc., Third Party and Alliance Coal Llc, Third Party 369 F.3d 1298 · Cir.

Leon E. Richartz, Petitioner T.C. Memo. 1999-18 · 1999

Leema Enterprises Incorporated, Petitioner T.C. Memo. 1999-18 · 1999

Maria Rivera, Petitioner T.C. Memo. 1999-18 · 1999

K. Richard Keeler, Petitioner T.C. Memo. 1999-18 · 1999

Security Bank Minnesota v. Commissioner 98 T.C. 33 · 1992

Gunther v. Commissioner 92 T.C. 39 · 1989

Fox v. Commissioner 82 T.C. 1001 · 1984

State v. Commissioner 77 T.C. 656 · 1981

Isidro Martin-Montis Trust v. Commissioner 75 T.C. 381 · 1980

Brountas v. Commissioner 73 T.C. 491 · 1979

Seaboard Coffee Service, Inc. v. Commissioner 71 T.C. 465 · 1978

Hunt Foods & Industries, Inc. v. Commissioner 57 T.C. 633 · 1972

Estate of Stahl v. Commissioner 52 T.C. 591 · 1969

Nye v. Commissioner 50 T.C. 203 · 1968

Rivers v. Commissioner 49 T.C. 663 · 1968

Baker Commodities, Inc. v. Commissioner 48 T.C. 374 · 1967

Smith v. Commissioner 48 T.C. 872 · 1967

Schwartz v. Commissioner 40 T.C. 191 · 1963

Greenvine Corp. v. Commissioner 40 T.C. 926 · 1963

Driscoll v. Commissioner 37 T.C. 52 · 1961

Graham v. Commissioner 36 T.C. 612 · 1961

J. I. Morgan, Inc. v. Commissioner 30 T.C. 881 · 1958

Texas Medical Association v. HHS · Cir.

Sigmon Coal v. Apfel · Cir.

Sidney Coal Co Inc v. Social Sec Admin · Cir.

Anders Knudsen v. Internal Revenue Service · Cir.

City of Providence v. US Department of Justice 954 F.3d 23 · Cir.

Berwind Corp. v. Commissioner of Social Secutity 307 F.3d 222 · Cir.

Sigmon Coal Company, Incorporated v. Kenneth S. Apfel 226 F.3d 291 · Cir.

Shenango Incorporated v. Apfel 307 F.3d 174 · Cir.

Berwind Corporation v. Commissioner of Social Security United Mine Workers of America Combined Benefit Fund Michael H. Holland William P. Hobgood Marty D. Hudson Thomas O.S. Rand Elliot A. Segal Carl E. Vanhorn Gail R. Wilensky, as Trustees of the United Mine Workers of America Combined Benefit Fund the United Mine Workers of America 1992 Benefit Plan A. Frank Dunham, as Trustee of the United Mine Workers of America 1992 Benefit Plan United States of America United Mine Workers of America Combined Benefit Fund, Michael H. Holland, William P. Hobgood, Marty D. Hudson, Thomas O.S. Rand, Elliot A. Segal, Carl E. Vanhorn, Gail R. Wilensky, the United Mine Workers of America 1992 Benefit Plan, A. Frank Dunham, United States of America, Berwind Corporation v. Commissioner of Social Security United Mine Workers of America Combined Benefit Fund Michael H. Holland William P. Hobgood Marty D. Hudson Thomas O.S. Rand Elliot A. Segal Carl E. Vanhorn Gail R. Wilensky, as Trustees of the United Mine Workers of America Combined Benefit Fund the United Mine Workers of America 1992 Benefit Plan A. Frank Dunham, as Trustee of the United Mine Workers of America 1992 Benefit Plan United States of America Berwind Corporation v. Commissioner of Social Security United Mine Workers of America Combined Benefit Fund Michael H. Holland William P. Hobgood Marty D. Hudson Thomas O.S. Rand Elliot A. Segal Carl E. Vanhorn Gail R. Wilensky, as Trustees of the United Mine Workers of America Combined Benefit Fund the United Mine Workers of America 1992 Benefit Plan A. Frank Dunham, as Trustee of the United Mine Workers of America 1992 Benefit Plan United States of America Commissioner of Social Security 307 F.3d 222 · Cir.

Sidney Coal Company, Inc. v. Social Security Administration, (04-6286), Michael H. Holland, Intervenors (04-6291) 427 F.3d 336 · Cir.

Sidney Coal Co. v. Social Security Administration 98 F. App'x 378 · Cir.