
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: 26USC84]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
          PART II--ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME
 
Sec. 84. Transfer of appreciated property to political 
        organization
        

(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.

(c) Political organization defined

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

(Added Pub. L. 93-625, Sec. 13(a)(1), Jan. 3, 1975, 88 Stat. 2120.)


                             Effective Date

    Section 13(b) of Pub. L. 93-625 provided that: ``The amendments made 
by subsection (a) [enacting this section] shall apply to transfers made 
after May 7, 1974, in taxable years ending after such date.''


   Nonrecognition of Gain or Loss Where Organization Sold Contributed 
                     Property Before August 2, 1973

    Section 13(c) of Pub. L. 93-625 provided that in the case of the 
sale or exchange of property before Aug. 2, 1973, which was acquired by 
the exempt political organization by contribution, no gain or loss shall 
be recognized by such organization.
