Section 206.19. Adjustment of pre-tax gains or losses.

(1) A taxpayer, whose federal adjusted gross income includes gains and losses realized in the tax year from the disposition of  property acquired prior to October 1, 1967, which are described in and subject to the provisions of subchapter P of the internal revenue code, 26 U.S.C.S1201 et seq., may reduce taxable income by the portion of gain or loss attributable to the period before October 1, 1967. When this election is made, it shall include all items of gain  or  loss  realized  during  the taxable year.

(2)     To compute this adjustment a fraction is applied  to   the  gain.  The denominator is the total months held and the numerator is the number of months held after October 1, 1967. In making this  calculation,  property acquired or disposed of from the first to the fifteenth of the month shall be counted from the first of the month and property acquired or disposed of after the fifteenth of the month shall be counted from the last day   of  the month.

(3)   Losses resulting from the application of this rule shall  not be carried forward.

History: 1979 AC.