§ 2634.303 Purchases, sales, and exchanges.
(a) In general. Except for reports required under § 2634.201(f) and as indicated in § 2634.310(b), each financial disclosure report filed pursuant to this subpart must include a brief description, the date, and value (using the categories of value in § 2634.301(d)(2) through (9)) of any purchase, sale, or exchange by the filer during the reporting period, in which the amount involved in the transaction exceeds $1,000. The acquisition of an asset through inheritance is not considered a transaction for purposes of this section. Reportable transactions include:
(1) Of real property, other than a personal residence of the filer or spouse, as defined in § 2634.105(l); and
(2) Of stocks, bonds, commodity futures, mutual fund shares, and other forms of securities.
(b) Exceptions. The following transactions need not be reported under paragraph (a) of this section:
(1) Transactions solely by and between the reporting individual, the reporting individual's spouse, or the reporting individual's dependent children;
(2) Transactions involving Treasury bills, notes, and bonds; money market mutual funds or accounts; and bank accounts (as defined in § 2634.301(c)(2)), provided they occur at rates, terms, and conditions available generally to members of the public;
(3) Transactions involving holdings of trusts and investment funds described in § 2634.312(b) and (c);
(4) Transactions which occurred at a time when the reporting individual was not a public financial disclosure filer or was not a Federal Government officer or employee; and
(5) Transactions fully disclosed in any public financial disclosure report filed during the calendar year pursuant to § 2634.309.
Example 1:
An employee sells her personal residence in Virginia for $650,000 and purchases a personal residence in the District of Columbia for $800,000. She did not rent out any portion of the Virginia property and does not intend to rent out the property in DC. She need not report the sale of the Virginia residence or the purchase of the DC residence.
Example 2:
An official sells his beach home in Maryland for $350,000. Because he has rented it out for one month every summer, it does not qualify as a personal residence. He must disclose the sale under this section and any capital gain over $200 realized on the sale under
§ 2634.302.
Example 3:
An official sells a ranch to his dependent daughter. The official need not report the sale because it is a transaction between the reporting individual and a dependent child; however, any capital gain, except for that portion attributable to a personal residence, is required to be reported under
§ 2634.302.
Example 4:
An official sells an apartment building and realizes a loss of $100,000. He must report the sale of the building if the sale price of the property exceeds $1,000; however, he need not report anything under
§ 2634.302, as the sale did not result in a capital gain.
Example 5:
An official buys shares in an S&P 500 mutual fund worth $12,000 in the 401(k) account that he has with a previous employer. He must disclose the purchase under this section. To make the purchase, he sold $12,000 worth of shares in a money market fund also held in the 401(k). He does not need to disclose the sale of the money market fund shares.
Example 6:
An official sells her interest in a private business for $75,000. She must disclose the sale under this section, and she must disclose any capital gain over $200 realized on the sale under
§ 2634.302.
