Internal Revenue Service
Revenue Ruling
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smRev. Rul. 62-94
1962-1 C.B. 137
Sec. 1037
IRS Headnote
Under section 1037(a) of the Internal Revenue Code of 1954, no gain or loss will be recognized upon the exchange of the 2 5/8 percent Treasury Bonds of 1965 or the 2 1/2 percent Treasury Bonds of 1967-72, dated October 20, 1941, June 1, 1945, and November 15, 1945, as offered by Department Circular, Public Dept Series Nos. 5-62, 6-62, and 7-62, respectively.
Full Text
Rev. Rul. 62-94
In the Treasury Department circulars listed below, the Secretary of the Treasury offered the Treaser Bonds specified in exchange for other Treasury Bonds as follows:
Treasury Department Circular, Public Debt Series No. 5-62,
dated February 19, 1962, 27 F.R. 1855
Bonds offered Exchanges accepted
4 percent Treasury of 1980 at 2 5/8 percent Treasury Bonds
100.25 percent of their face of 1965, dated June 15, 1958,
value accrued interest. due February 15, 1965.
Treasury Department Circular, Public Debt Series No. 6-62,
dated February 19, 1962, 27 F.R. 1857
Bonds offered Exchanges accepted
3 1/2 percent Treasury Bonds of 1990 2 1/2 percent Treasury Bonds
at 101.50 percent of their face of 1967-72, dated Oct. 20,
value. 1941, due Sept. 15, 1972, in
amounts of $500 or multiples
thereof.
3 1/2 percent Treasury Bonds of 1990 2 1/2 percent Treasury Bonds
at 101.25 percent of their face of 1967-72, dated June 1,
value. 1945, due June 15, 1972.
3 1/2 percent Treasury Bonds of 1990 2 1/2 percent Treasury Bonds
at 101.75 percent of their face of 1967-72, dated Nov. 15,
value. 1945, due Dec. 15, 1972.
Treasury Department Circular, Public Debt Series No. 7-62,
dated February 19, 1962, 27 F.R. 1858
Bonds offered Exchanges accepted
3 1/2 percent Treasury Bonds of 1998 2 1/2 percent Treasury Bonds
at 100.25 percent of their face of 1967-72, dated Oct. 20,
value. 1941, due Sept. 15, 1972, in
amounts of $500 or multiples
thereof.
3 1/2 percent Treasury Bonds of 1998 2 1/2 percent Treasury Bonds
at par. of 1967-72, dated June 1,
1945, due June 15, 1972.
3 1/2 percent Treasury Bonds of 1998 2 1/2 percent Treasury Bonds
at 100.50 percent of their face of 1967-72, dated Nov. 15,
value. 1945, due Dec. 15, 1972.
The income derived from the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. The bonds are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or herafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States or by any local taxing authority.
The bonds will be acceptable to secure deposits of public moneys. They may, upon the death of the owner, be redeemed at par, plus accrued interest to date of payment, in payment of Federal estate taxes due from the deceased owner's estate.
Pursuant to the provisions of section 1037(a) of the Code, the Secretary of the Treasury has declared that no gain or loss shall be recognized, for Federal income tax purposes, upon the exchange with the United States of the bonds indicated solely for the bonds specified as offered by the Treasury Department circulars listed above.
Gain or loss, if any, upon the obligations surrendered in exchange will be taken into account upon the disposition or redemption of the new obligations.