
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 542(e)(6)]
[CITE: 26USC1011]

 
                     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 II--BASIS RULES OF GENERAL APPLICATION
 
Sec. 1011. Adjusted basis for determining gain or loss


(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.

(Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 91-172, title II, 
Sec. 201(f), Dec. 30, 1969, 83 Stat. 564.)


                               Amendments

    1969--Pub. L. 91-172 redesignated existing provisions as subsec. (a) 
and added subsec. (b).


                    Effective Date of 1969 Amendment

    Amendment by Pub. L. 91-172 applicable with respect to sales made 
after Dec. 19, 1969, see section 201(g)(6) of Pub. L. 91-172, set out as 
a note under section 170 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 165, 166, 612, 1001 of this 
title.
