26 U.S.C. § 84 — Transfer of appreciated property to political organizations

submitted 51 years ago by Pub. L. 93-625 to r/title-26-INTERNAL-REVENUE-CODE · 160 words · no verdicts yet

in plain englishAI-generated · not legal advice

If you give property that has grown in value to a political organization, the law treats you as if you sold it. You must report the property's fair market value as a taxable gain. The organization then takes your old cost basis, increased by the gain you reported.

(a) General rule: If you transfer property to a political organization, and its fair market value is more than your adjusted basis, you are treated as having sold that property to the organization on the transfer date — and you must report its fair market value on that date as an amount realized, even though you gave it away. (b) Basis of property: The political organization's basis in that property is the same as your basis was, increased by the amount of gain you had to report because of the transfer. (c) "Political organization" has the meaning given in section 527(e)(1).

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

(a) General rule

If—

(1)

any person transfers property to a political organization, and

(2)

the fair market value of such property exceeds its adjusted basis,

then for purposes of this chapter the transferor shall be treated as having sold such property to the political organization on the date of the transfer, and the transferor shall be treated as having realized an amount equal to the fair market value of such property on such date.

(b) Basis of property

In the case of a transfer of property to a political organization to which subsection (a) applies, the basis of such property in the hands of the political organization shall be the same as it would be in the hands of the transferor, increased by the amount of gain recognized to the transferor by reason of such transfer.

For purposes of this section, the term “political organization” has the meaning given to such term by section 527(e)(1).

Source credit: (Added Pub. L. 93–625, § 13(a)(1), Jan. 3, 1975, 88 Stat. 2120; amended Pub. L. 115–141, div. U, title IV, § 401(a)(35), Mar. 23, 2018, 132 Stat. 1186.)

history & why it existsrecord from the source credit

1975Enacted · Pub. L. 93-625 · 88 Stat. 2120
2018Amended · Pub. L. 115-141 · 132 Stat. 1186

A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-625 on 1975-01-03.

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