Pub. L. 86-346, tit. I, sec. 102

Sec. 102. The heading and first sentence of section 454(c) of the Internal Revenue Code of 1954 (relating to matured United States savings bonds) are amended to read as follows: “(c) Matured United States Savings Bonds.—In the case of a taxpayer who— “(1) holds a series E United States savings bond at the date of maturity, and “(2) pursuant to regulations prescribed under the Second Liberty Bond Act (A) retains his investment in such series E bond in an obligation of the United States, other than a current income obligation, or (B) exchanges such series E bond for another nontransferable obligation of the United States in an exchange upon which gain or loss is not recognized because of section 1037 (or so much of section 1031 as relates to section 1037), the increase in redemption value (to the extent not previously includible in gross income) in excess of the amount paid for such series E73 Stat. 622 bond shall be includible in gross income in the taxable year in which the obligation is finally redeemed or in the taxable year of final maturity, whichever is earlier.”