26 U.S.C. § 1011 — Adjusted basis for determining gain or loss

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 131 words · no verdicts yet

in plain englishAI-generated · not legal advice

A property’s adjusted basis for calculating gain or loss is its applicable basis, adjusted under section 1016. A charitable bargain sale uses only the proportional part of that basis.

(a) General rule. To calculate gain or loss from selling or otherwise disposing of property, the adjusted basis is the property’s basis—determined under section 1012 or another applicable section of this subchapter and subchapters C, K, and P—adjusted under section 1016. (b) Bargain sale to a charitable organization. If a sale allows a deduction under section 170, the adjusted basis used to determine gain is the part of the adjusted basis in the same proportion that the amount received bears to the property’s fair market value.

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

(a) General rule

The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under section 1012 or other applicable sections of this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses)), adjusted as provided in section 1016.

(b) Bargain sale to a charitable organization

If a deduction is allowable under section 170 (relating to charitable contributions) by reason of a sale, then the adjusted basis for determining the gain from such sale shall be that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 91–172, title II, § 201(f), Dec. 30, 1969, 83 Stat. 564.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1969Amended · Pub. L. 91-172 · 83 Stat. 564

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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