
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC1051]

 
                     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 IV--SPECIAL RULES
 
Sec. 1051. Property acquired during affiliation

    In the case of property acquired by a corporation, during a period 
of affiliation, from a corporation with which it was affiliated, the 
basis of such property, after such period of affiliation, shall be 
determined, in accordance with regulations prescribed by the Secretary, 
without regard to inter-company transactions in respect of which gain or 
loss was not recognized. For purposes of this section, the term ``period 
of affiliation'' means the period during which such corporations were 
affiliated (determined in accordance with the law applicable thereto) 
but does not include any taxable year beginning on or after January 1, 
1922, unless a consolidated return was made, nor any taxable year after 
the taxable year 1928.

(Aug. 16, 1954, ch. 736, 68A Stat. 310; Pub. L. 94-455, title XIX, 
Secs. 1901(a)(131), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1786, 1834.)


                               Amendments

    1976--Pub. L. 94-455, Sec. 1901(a)(131), struck out last two 
sentences relating to the basis and adjustment of the basis of corporate 
property where a consolidated return was filed.
    Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or his delegate'' 
after ``Secretary''.


                    Effective Date of 1976 Amendment

    Amendment by section 1901(a)(131) of 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.
