CASUALTY LOSSES SUSTAINED UPON CERTAIN UNINSURED PROPERTY.

SEC. 49. CASUALTY LOSSES SUSTAINED UPON CERTAIN UNINSURED PROPERTY. (a) Treatment as Ordinary Loss.—Section 1231 (a) (relating to property used in the trade or business and involuntary conversions) is amended by adding at the end thereof the following new sentence: “In the case of any property used in the trade or business and of any capital asset held for more than 6 months and held for the production of income, this subsection shall not apply to any loss, in respect of which the taxpayer is not compensated for by insurance in any amount, arising from fire, storm, shipwreck, or other casualty, or from theft.” (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1957.