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26 U.S.C. § 1243 — Loss of small business investment company

Verified against govinfo.gov as of June 20, 2026View official text on govinfo.gov ↗
In the case of a small business investment company operating under the Small Business Investment Act of 1958, if—then such loss shall be treated as an ordinary loss.
  1. (1)a loss is on stock received pursuant to the conversion privilege of convertible debentures acquired pursuant to section 304 of the Small Business Investment Act of 1958, and
  2. (2)such loss would (but for this section) be a loss from the sale or exchange of a capital asset,