26 U.S.C. § 1034 — Untitled legal text

Page 2280 TITLE 26—INTERNAL REVENUE CODE [§ 1034 such date, see section 206(c) of Pub. L. 88–272, set out as an Effective Date note under section 121 of this title. 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. EFFECTIVE DATE OF 1956 AMENDMENT Act June 29, 1956, ch. 464, § 5(b), 70 Stat. 407, provided that: ‘‘The amendment made by this section [amending this section] shall apply with respect to taxable years ending after December 31, 1955, but only in the case of sales and exchanges of livestock after December 31, 1955.’’ SAVINGS PROVISION For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liabil- ity for tax for periods ending after Nov. 5, 1990, see sec- tion 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. [§ 1034. Repealed. Pub. L. 105–34, title III, § 312(b), Aug. 5, 1997, 111 Stat. 839] Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 306; Sept. 2, 1958, Pub. L. 85–866, title I, § 46(b), 72 Stat. 1642; Feb. 26, 1964, Pub. L. 88–272, title II, § 206(b)(4), 78 Stat. 40; Jan. 2, 1975, Pub. L. 93–597, § 6(a), 88 Stat. 1953; Mar. 29, 1975, Pub. L. 94–12, title II, § 207, 89 Stat. 32; Oct. 4, 1976, Pub. L. 94–455, title XIX, §§ 1901(a)(129), 1906(b)(13)(A), 90 Stat. 1785, 1834; May 23, 1977, Pub. L. 95–30, title I, § 102(b)(13), 91 Stat. 138; Nov. 6, 1978, Pub. L. 95–600, title IV, §§ 404(c)(5), 405(a)–(c)(1), 92 Stat. 2870, 2871; Nov. 8, 1978, Pub. L. 95–615, title II, § 206, 92 Stat. 3107; Aug. 13, 1981, Pub. L. 97–34, title I, §§ 112(b)(4), 122(a), (b), 95 Stat. 195, 197; July 18, 1984, Pub. L. 98–369, div. A, title X, § 1053(a), 98 Stat. 1045; Oct. 22, 1986, Pub. L. 99–514, title XVIII, § 1878(g), 100 Stat. 2904; Nov. 10, 1988, Pub. L. 100–647, title VI, § 6002(a), 102 Stat. 3684, related to roll- over of gain on sale of principal residence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to sales and exchanges after May 6, 1997, with certain exceptions, see section 312(d) of Pub. L. 105–34, set out as an Effective Date of 1997 Amend- ment note under section 121 of this title. § 1035. Certain exchanges of insurance policies (a) General rules No gain or loss shall be recognized on the ex- change of— (1) a contract of life insurance for another contract of life insurance or for an endowment or annuity contract or for a qualified long- term care insurance contract; (2) a contract of endowment insurance (A) for another contract of endowment insurance which provides for regular payments begin- ning at a date not later than the date pay- ments would have begun under the contract exchanged, or (B) for an annuity contract, or (C) for a qualified long-term care insurance contract; (3) an annuity contract for an annuity con- tract or for a qualified long-term care insur- ance contract; or (4) a qualified long-term care insurance con- tract for a qualified long-term care insurance contract. (b) Definitions For the purpose of this section— (1) Endowment contract A contract of endowment insurance is a con- tract with an insurance company which de- pends in part on the life expectancy of the in- sured, but which may be payable in full in a single payment during his life. (2) Annuity contract An annuity contract is a contract to which paragraph (1) applies but which may be pay- able during the life of the annuitant only in installments. For purposes of the preceding sentence, a contract shall not fail to be treat- ed as an annuity contract solely because a qualified long-term care insurance contract is a part of or a rider on such contract. (3) Life insurance contract A contract of life insurance is a contract to which paragraph (1) applies but which is not ordinarily payable in full during the life of the insured. For purposes of the preceding sen- tence, a contract shall not fail to be treated as a life insurance contract solely because a qualified long-term care insurance contract is a part of or a rider on such contract. (c) Exchanges involving foreign persons To the extent provided in regulations, sub- section (a) shall not apply to any exchange hav- ing the effect of transferring property to any person other than a United States person. (d) Cross references (1) For rules relating to recognition of gain or loss where an exchange is not solely in kind, see sub- sections (b) and (c) of section 1031. (2) For rules relating to the basis of property ac- quired in an exchange described in subsection (a), see subsection (d) of section 1031. (Aug. 16, 1954, ch. 736, 68A Stat. 309; Pub. L. 98–369, div. A, title II, §§ 211(b)(15), 224(a), July 18, 1984, 98 Stat. 756, 776; Pub. L. 99–514, title XVIII, § 1828, Oct. 22, 1986, 100 Stat. 2851; Pub. L. 105–34, title XI, § 1131(b)(1), Aug. 5, 1997, 111 Stat. 979; Pub. L. 109–280, title VIII, § 844(b), Aug. 17, 2006, 120 Stat. 1010; Pub. L. 115–141, div. U, title IV, § 401(a)(168), Mar. 23, 2018, 132 Stat. 1192.) Editorial Notes CODIFICATION Another section 1131(b) of Pub. L. 105–34 enacted sec- tion 684 of this title. AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–141 struck out ‘‘or’’ after semicolon at end. 2006—Subsec. (a)(1). Pub. L. 109–280, § 844(b)(3)(A), which directed amendment by inserting ‘‘or for a quali- fied long-term care insurance contract’’ before semi- colon ‘‘at the end’’, was executed by making the inser- tion before ‘‘; or’’ to reflect the probable intent of Con- gress. Subsec. (a)(2). Pub. L. 109–280, § 844(b)(3)(B), which di- rected amendment by inserting ‘‘, or (C) for a qualified long-term care insurance contract’’ before semicolon ‘‘at the end’’, was executed by making the insertion be- fore ‘‘; or’’ to reflect the probable intent of Congress. Subsec. (a)(3). Pub. L. 109–280, § 844(b)(3)(C), inserted ‘‘or for a qualified long-term care insurance contract’’ after ‘‘annuity contract’’.