# 5 C.F.R. § 2634.1006 (2026): Rollover into permitted property

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1006

## Section

- **Citation:** 5 C.F.R. § 2634.1006 (2026)
- **Heading:** Rollover into permitted property
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 5 CFR: Administrative Personnel / Chapter XVI: OFFICE OF GOVERNMENT ETHICS / Part 2634: EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, AND CERTIFICATES OF DIVESTITURE / Subpart J: Certificates of Divestiture / § 2634.1006: § 2634.1006   Rollover into permitted property.

## Text

(a)
Reinvestment of proceeds.
In order to qualify for deferral of capital gains, an eligible person must reinvest the proceeds from the sale of the property divested pursuant to a Certificate of Divestiture into permitted property during the 60-day period beginning on the date of the sale. The proceeds may be reinvested into one or more types of permitted property.
Example 1:
A recently hired employee of the Department of Transportation receives a Certificate of Divestiture for the sale of a large block of stock in an airline. He may split the proceeds of the sale and reinvest them in an S&P Index Fund, a diversified Growth Stock Fund, and U.S. Treasury bonds.
Example 2:
The Secretary of Treasury sells certain stock after receiving a Certificate of Divestiture and is considering reinvesting the proceeds from the sale into U.S. Treasury securities. However, because the Secretary of the Treasury is prohibited by 31 U.S.C. 329 from being involved in buying obligations of the United States Government, the Secretary cannot reinvest the proceeds in such securities. However, she may invest the proceeds in a diversified mutual fund. See the definition of
permitted property
at § 2634.1003(b).
(b)
Internal Revenue Service reporting requirements.
An eligible person who elects to defer the recognition of capital gains from the sale of property pursuant to a Certificate of Divestiture must follow Internal Revenue Service rules for reporting the sale of the property and the reinvestment transaction.

## Nearby sections

- [5 C.F.R. § 2634.1001 (2026) § 2634.1001   Overview.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1001.md)
- [5 C.F.R. § 2634.1002 (2026) § 2634.1002   Role of the Internal Revenue Service.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1002.md)
- [5 C.F.R. § 2634.1003 (2026) § 2634.1003   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1003.md)
- [5 C.F.R. § 2634.1004 (2026) § 2634.1004   General rule.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1004.md)
- [5 C.F.R. § 2634.1005 (2026) § 2634.1005   How to obtain a Certificate of Divestiture.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1005.md)
- [5 C.F.R. § 2634.1006 (2026) § 2634.1006   Rollover into permitted property.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1006.md)
- [5 C.F.R. § 2634.1007 (2026) § 2634.1007   Cases in which Certificates of Divestiture will not be issued.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1007.md)
- [5 C.F.R. § 2634.1008 (2026) § 2634.1008   Public access to a Certificate of Divestiture.](https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1008.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T5_P2634_S2634_1006. Check the current official text before relying on it. Not legal advice.