26 U.S.C. § 1040 — Transfer of certain farm, etc., real property

submitted 50 years ago by Pub. L. 94-455 to r/title-26-INTERNAL-REVENUE-CODE · 206 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section covers transfer of certain farm, etc., real property. (a) General rule If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A).

(a) General rule If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property about which an election was made under section 2032A, then gain on that transfer must be recognized to the estate only to the extent that, on the date of that transfer, the fair market value of that property exceeds the value of that property for purposes of chapter 11 (determined without regard to section 2032A). (b) Similar rule for certain trusts To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) must apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property about which an election was made under section 2032A. (c) Basis of property acquired in transfer described in subsection (a) or (b) The basis of property acquired in a transfer about which gain realized is not recognized by reason of subsection (a) or (b) must be the basis of that property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.

the actual law source: uscode.house.gov ↗public domain

(a) General rule

If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A).

(b) Similar rule for certain trusts

To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A.

The basis of property acquired in a transfer with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.

Source credit: (Added Pub. L. 94–455, title XX, § 2005(b), Oct. 4, 1976, 90 Stat. 1877; amended Pub. L. 95–600, title VII, § 702(d)(3), Nov. 6, 1978, 92 Stat. 2929; Pub. L. 96–222, title I, § 105(a)(5)(A), Apr. 1, 1980, 94 Stat. 219; Pub. L. 96–223, title IV, § 401(c)(2)(A), Apr. 2, 1980, 94 Stat. 300; Pub. L. 97–34, title IV, § 421(j)(2)(B), Aug. 13, 1981, 95 Stat. 312; Pub. L. 97–448, title I, § 104(b)(3)(A), (B), Jan. 12, 1983, 96 Stat. 2381; Pub. L. 107–16, title V, § 542(d)(1), June 7, 2001, 115 Stat. 84; Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300.)

history & why it existsrecord from the source credit

1976Enacted · Pub. L. 94-455 · 90 Stat. 1877
1978Amended · Pub. L. 95-600 · 92 Stat. 2929
1980Amended · Pub. L. 96-222 · 94 Stat. 219
1980Amended · Pub. L. 96-223 · 94 Stat. 300
1981Amended · Pub. L. 97-34 · 95 Stat. 312
1983Amended · Pub. L. 97-448 · 96 Stat. 2381
2001Amended · Pub. L. 107-16 · 115 Stat. 84
2010Amended · Pub. L. 111-312 · 124 Stat. 3300

A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-455 on 1976-10-04.

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