§75 — Dealers in tax-exempt securities
30 cases·2 followed·1 distinguished·1 overruled·26 cited—7% support
Statute Text — 26 U.S.C. §75
In computing the gross income of a taxpayer who holds during the taxable year a municipal bond (as defined in subsection (b)(1)) primarily for sale to customers in the ordinary course of his trade or business—
if the gross income of the taxpayer from such trade or business is computed by the use of inventories and his inventories are valued on any basis other than cost, the cost of securities sold (as defined in subsection (b)(2)) during such year shall be reduced by an amount equal to the amortizable bond premium which would be disallowed as a deduction for such year by section 171(a)(2) (relating to deduction for amortizable bond premium) if the definition in section 171(d) of the term “bond” did not exclude such municipal bond; or
if the gross income of the taxpayer from such trade or business is computed without the use of inventories, or by use of inventories valued at cost, and the municipal bond is sold or otherwise disposed of during such year, the adjusted basis (computed without regard to this paragraph) of the municipal bond shall be reduced by the amount of the adjustment which would be required under section 1016(a)(5) (relating to adjustment to basis for amortizable bond premium) if the definition in section 171(d) of the term “bond” did not exclude such municipal bond.
Notwithstanding the provisions of paragraph (1), no reduction to the cost of securities sold during the taxable year shall be made in respect of any obligation described in subsection (b)(1)(A)(ii) which is held by the taxpayer at the close of the taxable year; but in the taxable year in which any such obligation is sold or otherwise disposed of, if such obligation is a municipal bond (as defined in subsection (b)(1)), the cost of securities sold during such year shall be reduced by an amount equal to the adjustment described in paragraph (2), without regard to the fact that the taxpayer values his inventories on any basis other than cost.
For purposes of subsection (a)—
The term “municipal bond” means any obligation issued by a government or political subdivision thereof if the interest on such obligation is excludable from gross income; but such term does not include such an obligation if—
it is sold or otherwise disposed of by the taxpayer within 30 days after the date of its acquisition by him, or
its earliest maturity or call date is a date more than 5 years from the date on which it was acquired by the taxpayer; and
when it is sold or otherwise disposed of by the taxpayer—
in the case of a sale, the amount realized, or
in the case of any other disposition, its fair market value at the time of such disposition,
is higher than its adjusted basis (computed without regard to this section and section 1016(a)(6)).
Determinations under subparagraph (B) shall be exclusive of interest.
The term “cost of securities sold” means the amount ascertained by subtracting the inventory value of the closing inventory of a taxable year from the sum of—
the inventory value of the opening inventory for such year, and
the cost of securities and other property purchased during such year which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.75-1 Treatment of bond premiums in case of dealers in tax-exempt securities
- Treas. Reg. §Treas. Reg. §1.75-1(a) In general.
- Treas. Reg. §Treas. Reg. §1.75-1(b) Inventories not valued at cost.
- Treas. Reg. §Treas. Reg. §1.75-1(c) Inventories not used or inventories valued at cost.
- Treas. Reg. §Treas. Reg. §1.75-1(d) Bonds acquired before July 1, 1950.
- Treas. Reg. §Treas. Reg. §1.75-1(i) If the taxpayer holds the obligation at the end of the taxable year, he is not required by section 75 to reduce the “cost of securities sold” for such year with respect to the obligation.
30 Citing Cases
Pursuant to section 75D3, the last day for filing an appeal ofthe collection determination was therefore the next day, Monday, November 16, 2009 (which was not a legal holiday).
mer’s perspective, has the same functional result as the online software described in paragraph (i)(6)(iii) of this section; and (2) Has a significant overlap of features or purpose with the online software described in paragraph (i)(6)(iii) of this section. 75 [*75] The parties made two primary arguments on this issue: (1) whether Bloomberg may aggregate RMDS and portions of 3000 Xtra software for purposes of the comparison; and (2) if Bloomberg can aggregate RMDS and portions of 3000 Xtra soft
The statutes that govern the State security hospital demonstrate that it is, in fact, a penal institution. The Larned State Hospital is the home ofthe State security hospital. E sec. 76-1305. The State security hospital was established with "the purpose ofholding in custody, examining, treating and caring for such mentally ill persons
Under section 75 ofthe GO NRW, a municipality must use its financial means as efficiently and - 209 - diligently as possible. IfDortmund has to shift all ofits employment contracts related to the trade fair facility to other city resources, it would be required to terminate many ofits employees, which would require significant severance payments. Dr. He
Under section 75 ofthe GO NRW, a municipality must use its financial means as efficiently and - 209 - diligently as possible. IfDortmund has to shift all ofits employment contracts related to the trade fair facility to other city resources, it would be required to terminate many ofits employees, which would require significant severance payments. Dr. He
Under section 75 ofthe GO NRW, a municipality must use its financial means as efficiently and - 209 - diligently as possible. IfDortmund has to shift all ofits employment contracts related to the trade fair facility to other city resources, it would be required to terminate many ofits employees, which would require significant severance payments. Dr. He
Under section 75 of the GO NRW, a municipality must use its financial means as efficiently and diligently as possible. If Dortmund has to shift all of its employment contracts related to the trade fair facility to other city resources, it would be required to terminate many of its employees, which would require significant severance payments. Dr. Heisse
* * * * * * * * * * it is held that for the purpose of section 75(c) of the Code "gross income" of a member of a partnership includes his proportionate share of the gross income of the partnership.
In Tew, before deciding the issue of whether the loan company violated section 83-17-105, the court noted that it was common practice in the industry for unlicensed creditors to receive commissions for the sale of credit insurance. Id. at 670. Furthermore, the court cited Miss. Code Ann. sec. 83-53-25 and Ins. Dept. Reg. 82-102 as e