In the case of a share of stock issued pursuant to section 303(c) of the Federal
National Mortgage Association Charter Act (12 U.S.C., sec. 1718), the basis of such
share in the hands of the initial holder shall be an amount equal to the capital
contributions evidenced by such share reduced by the amount (if any) required by
section 162(d) to be treated (with respect to such share) as ordinary and necessary expenses paid
or incurred in carrying on a trade or business.
(Added Pub. L. 86-779, 8(b), Sept. 14, 1960, 74 Stat. 1003.)
BACKGROUND NOTES
EFFECTIVE DATE
Section applicable with respect to taxable years beginning after Dec. 31, 1959, see
section 8(d) of Pub. L. 86-779, set out as an Effective Date of 1960 Amendment note under section 162 of this title.
PRIOR PROVISIONS
A prior section 1054 was renumbered section 1061 of this title.
