Repealed by Pub. L. 104-7, Apr. 11, 1995
(Aug. 16, 1954, ch. 736, 68A Stat. 311; Sept. 2, 1958, Pub. L. 85-866, title I, 48(a), 72 Stat. 1642;
Oct. 4, 1976, Pub. L. 94-455, title XIX, 1901(b)(31)(E), 1906(b)(13)(A), 90 Stat. 1800, 1834; Apr. 11, 1995, Pub. L. 104-7, Sec. 2(a).)
1995--Pub. L. 104-7, Sec. 2(a), struck chapter 1, Subchapter O, part V (relating to changes to effectuate FCC policy).
Prior to repeal, Sec. 1071 read as follows:
“(a) Nonrecognition of gain or loss
“If the sale or exchange of property (including stock in a corporation) is certified
by the Federal Communications Commission to be necessary or appropriate to effectuate
a change in a policy of, or the adoption of a new policy by, the Commission with respect
to the ownership and control of radio broadcasting stations, such sale or exchange
shall, if the taxpayer so elects, be treated as an involuntary conversion of such
property within the meaning of section 1033. For purposes of such section as made
applicable by the provisions of this section, stock of a corporation operating a radio
broadcasting station, whether or not representing control of such corporation, shall
be treated as property similar or related in service or use to the property so converted.
The part of the gain, if any, on such sale or exchange to which section 1033 is not
applied shall nevertheless not be recognized, if the taxpayer so elects, to the extent
that it is applied to reduce the basis for determining gain or loss on sale or exchange
of property, of a character subject to the allowance for depreciation under section
167, remaining in the hands of the taxpayer immediately after the sale or exchange,
or acquired in the same taxable year. The manner and amount of such reduction shall
be determined under regulations prescribed by the Secretary. Any election made by
the taxpayer under this section shall be made by a statement to that effect in his
return for the taxable year in which the sale or exchange takes place, and such election
shall be binding for the taxable year and all subsequent taxable years.
“For basis of property acquired on a sale or exchange treated as an involuntary
conversion under subsection (a), see section 1033(b).”
1976--Subsec. (a). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (b). Pub. L. 94-455, 1901(b)(31)(E), substituted
“section 1033(b)” for “section 1033(c)”.
1958--Subsec. (a). Pub. L. 85-866 substituted “to effectuate a change in a policy of, or the adoption of a new
policy by, the Commission” for “to effectuate the policies of the Commission”.
EFFECTIVE DATE OF 1995 AMENDMENTS
(d)(1) IN GENERAL.--The amendments made by section 2(a) of Pub. L. 104-7 shall apply to--
(A) sales and exchanges on or after January 17, 1995, and
(B) sales and exchanges before such date if the FCC tax certificate with respect to
such sale or exchange is issued on or after such date.
(A) IN GENERAL.--The amendments made by section 2(a) of Pub. L. 104-7 shall not apply to any sale or exchange pursuant to a written contract which was
binding on January 16, 1995, and at all times thereafter before the sale or exchange,
if the FCC tax certificate with respect to such sale or exchange was applied for,
or issued, on or before such date.
(B) SALES CONTINGENT ON ISSUANCE OF CERTIFICATE.--
(i) IN GENERAL.--A contract shall be treated as not binding for purposes of subparagraph
(A) if the sale or exchange pursuant to such contract, or the material terms of such
contract, were contingent, at any time on January 16, 1995, on the issuance of an
FCC tax certificate. The preceding sentence shall not apply if the FCC tax certificate
for such sale or exchange is issued on or before January 16, 1995.
(ii) MATERIAL TERMS.--For purposes of clause (i), the material terms of a contract
shall not be treated as contingent on the issuance of an FCC tax certificate solely
because such terms provide that the sales price would, if such certificate were not
issued, be increased by an amount not greater than 10 percent of the sales price otherwise
provided in the contract.
(3) FCC TAX CERTIFICATE.--For purposes of this subsection, the term “FCC tax
certificate” means any certificate of the Federal Communications Commission
for the effectuation of section 1071 of the Internal Revenue Code
of 1986 (as in effect on the day before the date of the enactment of Pub. L. 104-7
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1901(b)(31)(E) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of
Pub. L. 94-455, set out as a note under section 2 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Section 48(b) of Pub. L. 85-866 provided that:
“The amendment made by subsection (a) [amending this section] shall apply with
respect to any sale or exchange after December 31, 1957”.