26 USC § 1287 - Denial of capital gain treatment for gains on certain obligations not in registered form

---
identifier: "/us/usc/t26/s1287"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1287 - Denial of capital gain treatment for gains on certain obligations not in registered form"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1287"
section_name: "Denial of capital gain treatment for gains on certain obligations not in registered form"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "P"
subchapter_name: "Capital Gains and Losses"
part_number: "V"
part_name: "SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 98–369, div. A, title I, § 41(a), July 18, 1984, 98 Stat. 552; amended Pub. L. 111–147, title V, § 502(a)(2)(D), Mar. 18, 2010, 124 Stat. 107.)"
---


# § 1287. Denial of capital gain treatment for gains on certain obligations not in registered form

**(a)** **In general** If any registration-required obligation is not in registered form, any gain on the sale or other disposition of such obligation shall be treated as ordinary income (unless the issuance of such obligation was subject to tax under section 4701).

**(b)** **Definitions** For purposes of subsection (a)—

**(1)** **Registration-required obligation** The term “registration-required obligation” has the meaning given to such term by section 163(f)(2).

**(2)** **Registered form** The term “registered form” has the same meaning as when used in section 163(f).

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**Source Credit**: (Added Pub. L. 98–369, div. A, title I, § 41(a), July 18, 1984, 98 Stat. 552; amended Pub. L. 111–147, title V, § 502(a)(2)(D), Mar. 18, 2010, 124 Stat. 107.)

## Editorial Notes

### Amendments

2010—Subsec. (b)(1).  struck out “except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall not apply” before period.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by  applicable to obligations issued after the date which is 2 years after , see , set out as a note under .

### Effective Date

Section applicable to taxable years ending after , except as otherwise provided, see , set out as a note under .