1 692 Stock, ate ., rec eived on a dist ribution . Vol. 45, p. 818. Computing period st ock has be en held. Vol.45, p.826; Vol:48, p. 715. Limit ation on capital losses . Gains and losses from short sales, etc . Re tir em ent of bonds, e tc. Loss fr om wa sh sales of stock, etc . Restriction on claim for , if taxpayer has acquired substantially identical stock within 30 days. A nte, p . 1659. Allowance to a corpo. ration . 74TH C ONGRESS . SESS . II. CH. 690 . J UNE 22, 1936 . determining gain or loss from a . sale or exchange, the same basis in whole or in part in his hands as it would have in the hands of such other p erson . (3) In det ermining the pe riod for which the taxp ayer ha s held stock or securities received upon a distribution where no gain was recognized to the distributee under the provisions of section 112 (g) of the Revenue Act of 1928 or the Revenue Act of 1932, there shall be included the period for which he held the stock or securi- ties in the distributing corporation prior to the receipt of the stock or securities upon such distribution . (4) In determining the period for which the taxpayer has held stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the' nondeductibility (under section 118 of this Act or section 118 of the Revenue Act of 1928 or the Revenue Act of 1932 or the Revenue Act of 1934, relating to wash sales) of the loss from the sale or other disposition of sub- stantia lly identical stock or se curities, there shall be included the period for which he held the stock or securities the loss from the sale or other disposition of which was not deductible . (d) LIMITATION ON CAPIT AL LossEs .-Losses from sales or ex- changes of capital assets shall be allowed only to the extent of $2,000 plus the gains from such sales or exchanges . If a bank or trust company incorporated under the laws of the United States or of any State or Territory, a substantial part of whose business is the rec eipt of d eposi ts, sells any bond , de bentu re, n ote, or c erti ficat e or other evidence of indebtedness issued by any corporation (including one i ssued by a gove rnment o r polit ical sub divisio n thereo f), wit h interest coupons or in registered form, any loss resulting from such sale (except such portion of the loss as does not exceed the amount, if a ny, by which th e adjus ted bas is of su ch inst rument e xceeds the par or face value thereof) shall not be subject to the foregoing limi- tation and shall not be included in determining the applicability of such limita tion to other losses . (e) GAIN S AND L OSSES FR OM SHOR T SALES , ET C. -For the purpose of this title- (1) gains or losses from short sales of property shall be con- sidered as gains or losses from sales or exchanges of capital assets ; and (2) gains or losses attributable to the failure to exercise privi- leges or options to buy or sell property shall be considered as gains or losses from sales or exchanges of capital assets held for one year or less. (f) RETIREMENT OF BONDS, ETC .-For the purposes of this title, amounts received by the holder upon the retirement of bonds, deben- tures, note s, or certificates or oth er evidences of indebtedne ss issued by a ny corporation (includ ing those issued by a government or p oliti cal subdi visi on th ereo f), w ith inter est coupo ns o r in regi stere d form, shall be considered as amounts received in exchange therefor . SEC. 118. LOSS FRO M WAS H SALES OF STOCK OR SECURITIES. (a) In the cas e of an y loss c laimed to have been su stained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before t he date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange upon which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identi- cal stock or securities, then no deduction for the loss shall be allowed under section 23 (e) (2) ; nor shall such deduction be allowed under section 23 (f) unless the claim is made by a corporation, a
