
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1001]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
          Subchapter O--Gain or Loss on Disposition of Property
 
   PART I--DETERMINATION OF AMOUNT OF AND RECOGNITION OF GAIN OR LOSS
 
Sec. 1001. Determination of amount of and recognition of gain or 
        loss
        

(a) Computation of gain or loss

    The gain from the sale or other disposition of property shall be the 
excess of the amount realized therefrom over the adjusted basis provided 
in section 1011 for determining gain, and the loss shall be the excess 
of the adjusted basis provided in such section for determining loss over 
the amount realized.

(b) Amount realized

    The amount realized from the sale or other disposition of property 
shall be the sum of any money received plus the fair market value of the 
property (other than money) received. In determining the amount 
realized--
        (1) there shall not be taken into account any amount received as 
    reimbursement for real property taxes which are treated under 
    section 164(d) as imposed on the purchaser, and
        (2) there shall be taken into account amounts representing real 
    property taxes which are treated under section 164(d) as imposed on 
    the taxpayer if such taxes are to be paid by the purchaser.

(c) Recognition of gain or loss

    Except as otherwise provided in this subtitle, the entire amount of 
the gain or loss, determined under this section, on the sale or exchange 
of property shall be recognized.

(d) Installment sales

    Nothing in this section shall be construed to prevent (in the case 
of property sold under contract providing for payment in installments) 
the taxation of that portion of any installment payment representing 
gain or profit in the year in which such payment is received.

(e) Certain term interests

                           (1) In general

        In determining gain or loss from the sale or other disposition 
    of a term interest in property, that portion of the adjusted basis 
    of such interest which is determined pursuant to section 1014, 1015, 
    or 1041 (to the extent that such adjusted basis is a portion of the 
    entire adjusted basis of the property) shall be disregarded.

                (2) Term interest in property defined

        For purposes of paragraph (1), the term ``term interest in 
    property'' means--
            (A) a life interest in property,
            (B) an interest in property for a term of years, or
            (C) an income interest in a trust.

                            (3) Exception

        Paragraph (1) shall not apply to a sale or other disposition 
    which is a part of a transaction in which the entire interest in 
    property is transferred to any person or persons.

(Aug. 16, 1954, ch. 736, 68A Stat. 295; Pub. L. 91-172, title II, 
Sec. 231(c)(2), title V, Sec. 516(a), Dec. 30, 1969, 83 Stat. 579, 646; 
Pub. L. 94-455, title XIX, Sec. 1901(a)(121), Oct. 4, 1976, 90 Stat. 
1784; Pub. L. 95-600, title VII, Sec. 702(c)(9), Nov. 6, 1978, 92 Stat. 
2928; Pub. L. 96-223, title IV, Sec. 401(a), Apr. 2, 1980, 94 Stat. 299; 
Pub. L. 98-369, div. A, title IV, Sec. 421(b)(4), July 18, 1984, 98 
Stat. 794; Pub. L. 103-66, title XIII, Sec. 13213(a)(2)(E), Aug. 10, 
1993, 107 Stat. 474.)


                               Amendments

    1993--Subsec. (f). Pub. L. 103-66 struck out heading and text of 
subsec. (f). Text read as follows: ``For treatment of certain expenses 
incident to the sale of a residence which were deducted as moving 
expenses by the taxpayer or his spouse under section 217(a), see section 
217(e).''
    1984--Subsec. (e)(1). Pub. L. 98-369 inserted reference to section 
1041.
    1980--Subsec. (e)(1). Pub. L. 96-223 repealed the amendment made by 
Pub. L. 95-600. See 1978 Amendment note below.
    1978--Subsec. (e)(1). Pub. L. 95-600 inserted reference to section 
1023. See Repeals note below.
    1976--Subsec. (c). Pub. L. 94-455 substituted provision recognizing 
the entire amount of gain or loss, except as otherwise provided, for 
provision referring to section 1002 for the determination of the extent 
of gain or loss to be recognized.
    1969--Subsec. (e). Pub. L. 91-172, Sec. 516(a), added subsec. (e).
    Subsec. (f). Pub. L. 91-172, Sec. 231(c)(2), added subsec. (f).


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 applicable to expenses incurred after 
Dec. 31, 1993, see section 13213(e) of Pub. L. 103-66 set out as a note 
under section 62 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 applicable to transfers after July 18, 
1984, in taxable years ending after such date, subject to election to 
have amendment apply to transfers after 1983 or to transfers pursuant to 
existing decrees, see section 421(d) of Pub. L. 98-369, set out as an 
Effective Date note under section 1041 of this title.


        Effective Date of 1980 Amendment and Revival of Prior Law

    Amendment by Pub. L. 96-223 (repealing section 702(c)(9) of Pub. L. 
95-600 and the amendment made thereby, which had amended this section) 
applicable in respect of decedents dying after Dec. 31, 1976, and except 
for certain elections, this title to be applied and administered as if 
those repealed provisions had not been enacted, see section 401(b), (e) 
of Pub. L. 96-223, set out as a note under section 1023 of this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-600 effective as if included in the 
amendments and additions made by, and the appropriate provisions of Pub. 
L. 94-455, see section 702(c)(10) of Pub. L. 95-600, set out as a note 
under section 1014 of this title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-455 effective for taxable years beginning 
after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as a 
note under section 2 of this title.


                    Effective Date of 1969 Amendment

    Amendment by section 231(c)(2) of Pub. L. 91-172 applicable to 
taxable years beginning after Dec. 31, 1969, see section 231(d) of Pub. 
L. 91-172, set out as a note under section 217 of this title.
    Section 516(d) of Pub. L. 91-172, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) The amendment made by subsection (a) [amending this section] 
shall apply to sales or other dispositions after October 9, 1969.
    ``(2) The amendment made by subsection (b) [amending section 1231 of 
this title] shall apply to taxable years beginning after December 31, 
1969.
    ``(3) The amendments made by subsection (c) [enacting section 1253 
and amending sections 162 and 1016 of this title] shall apply to 
transfers after December 31, 1969, except that section 1253(d)(1) of the 
Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by 
subsection (c) shall, at the election of the taxpayer (made at such time 
and in such manner as the Secretary or his delegate may by regulations 
prescribe), apply to transfers before January 1, 1970, but only with 
respect to payments made in taxable years ending after December 31, 
1969, and beginning before January 1, 1980.''


                                 Repeals

    Pub. L. 95-600, Sec. 702(c)(9), cited as a credit to this section, 
and the amendment made thereby, were repealed by Pub. L. 96-223, title 
IV, Sec. 401(a), 94 Stat. 299, resulting in the text of this section 
reading as it read prior to enactment of section 702(c)(9). See 
Effective Date of 1980 Amendment and Revival of Prior Law note set out 
above.

                  Section Referred to in Other Sections

    This section is referred to in sections 167, 331, 368 of this title.
