DEFINITION of Section 1237 Capital Gain Opportunity Section 1237 Capital Gain Opportunity is a specific tax credit that allows taxpayers to receive capital gains treatment on the sale of subdivided lots of land. The purpose is to allow individual taxpayers who are not real estate dealers to escape ordinary income tax treatment on the sale
What Is Section 1244 Stock? Section 1244 stock refers to the tax treatment of restricted stock by the IRS. Section 1244 of the tax code allows losses from the sale of shares of small, domestic corporations to be deducted as ordinary losses instead of as capital losses up to a maximum of $50,000 for individual
What Is Section 1250? Section 1250 of the United States Internal Revenue Code is a rule establishing that the IRS will tax a gain from the sale of depreciated real property as ordinary income if the accumulated depreciation exceeds the depreciation calculated with the straight-line method. Section 1250 bases the amount of tax due on the property type—on whether it
What Is a Section 1256 Contract? A Section 1256 contract is a type of investment defined by the Internal Revenue Code (IRC) as a regulated futures contract, foreign currency contract, non-equity option, dealer equity option, or dealer securities futures contract. What makes a Section 1256 contract unique is that each contract held by a taxpayer
What Is the Section 1341 Credit? The Section 1341 Credit is a federal tax credit available for U.S. taxpayers who reported income in a previous year but had to repay the income because it was paid in error in the first place. The income that was repaid must amount to more than $3,000 in order
What Is Section 16? Section 16 is a rule within the Securities Exchange Act of 1934 (SEA) that articulates the regulatory filing responsibilities that directors, officers, and principal stockholders are legally required to adhere to. The Securities and Exchange Act of 1934 is a law that governs the secondary trading of securities in the U.S.
What Is Section 179? Section 179 of the U.S. internal revenue code is an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset over a period of time. The Section 179 deduction can be taken if the piece of equipment is purchased or
What Is Section 232 of the Trade Expansion Act? Section 232 of the Trade Expansion Act of 1962 authorizes the President of the United States, through tariffs or other means, to adjust the imports of goods or materials from other countries if it deems the quantity or circumstances surrounding those imports to threaten national security.
What Is Section 7702? Section 7702 of the U.S. Internal Revenue Service (IRS) Tax Code defines what the federal government considers to be a legitimate life insurance contract and is used to determine how the proceeds the policy generates are taxed. The proceeds of policies that do not meet the government’s definition are taxable as
What Is Section 988? IRC Section 988 is a tax regulation governing capital losses or gains on investments held in a foreign (nonfunctional) currency. A Section 988 transaction relates to Section 988(c)(1) of the Internal Revenue Code, which went into effect after Dec. 31, 1986. Key Takeaways Section 988 of the Internal Revenue Code describes
