590
INTERNAL REVENUE CODE OF 1954
Subchapter F—Silver Bullion Sec. Sec. Sec. Sec. Sec. Sec. Sec.
4891. 4892. 4893. 4894. 4895. 4896. 4897.
Imposition of tax. Definitions. Liability for tax. Abatement or refund. Stamps. Applicability. Cross references.
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SEC. 4891. IMPOSITION OF TAX.
There shall be imposed on all transfers of any interest in silver bullion, if the price for which such interest is or is to be transferred exceeds the total of the cost thereof and allowed expenses, a tax of 50 percent of the amount of such excess. SEC. 4892. DEFINITIONS.
For the purpose of this subchapter— (1) COST.—The term "cost" means the cost of the interest in silver bullion to the transferor, except that— (A) in case of silver bullion produced from materials containing silver which has not previously entered into industrial, commercial, or monetary use, the cost to a transferor who is the producer shall be deemed to be the market price at the time of production determined in accordance with regulations issued hereunder; (B) in the case of an interest in silver bullion acquired by the transferor otherwise than for valuable consideration, the cost shall be deemed to be the cost thereof to the last previous transferor by whom it was acquired for a valuable consideration; and (C) in the case of any interest in silver bullion acquired by the transferor in a wash sale, the cost shall be deemed to be the cost to him of the interest transferred by him in such wash sale, but with proper adjustment, in accordance with regulations under this subchapter, when such interests are in silver bullion for delivery at different times. (2) TRANSFER.—The term "transfer" means a sale, agreement of sale, agreement to sell, memorandum of sale or delivery of, or transfer, whether made by assignment in blank or by any delivery, or by any paper or agreement or memorandum or any other evidence of transfer or sale; or means to make a transfer as so defined. (3) INTEREST IN SILVER BULLION.—The term "interest in silver bullion" means any title or claim to, or interest in, any silver bullion or contract therefor. (4) ALLOWED E X P E N S E S. — The term "allowed expenses" means usual and necessary expenses actually incurred in holding, processing, or transporting the interest in silver bullion as to which an interest is transferred (including storage, insurance, and transportation charges but not including interest, taxes, or charges in the nature of overhead), determined in accordance with regulations issued hereunder. § 4891
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