
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: 26USC1019]

 
                     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. 1019. Property on which lessee has made improvements

    Neither the basis nor the adjusted basis of any portion of real 
property shall, in the case of the lessor of such property, be increased 
or diminished on account of income derived by the lessor in respect of 
such property and excludable from gross income under section 109 
(relating to improvements by lessee on lessor's property). If an amount 
representing any part of the value of real property attributable to 
buildings erected or other improvements made by a lessee in respect of 
such property was included in gross income of the lessor for any taxable 
year beginning before January 1, 1942, the basis of each portion of such 
property shall be properly adjusted for the amount so included in gross 
income.

(Aug. 16, 1954, ch. 736, 68A Stat. 301.)
