2005 California Revenue and Taxation Code Sections 24901-24905.5 Article 1. Computation of Gain or Loss

REVENUE AND TAXATION CODE
SECTION 24901-24905.5

24901.  (a) 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 24911 for determining gain, and
the loss shall be the excess of the adjusted basis provided in that
section for determining loss over the amount realized.
   (b) 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
24346 as imposed on the purchaser, and
   (2) There shall be taken into account amounts representing real
property taxes which are treated under Section 24346 as imposed on
the corporation if those taxes are to be paid by the purchaser.
   (c) In the case of a sale or exchange of property, the extent to
which the gain or loss determined under this section shall be
recognized for purposes of this part shall be determined under
Section 24902.
   (d) 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 that payment is
received.
   (e) (1) In determining gain or loss from the sale or other
disposition of a term interest in property, that portion of the
adjusted basis of that interest which is determined pursuant to
Sections 24914 and 24915 (to the extent that the adjusted basis is a
portion of the entire adjusted basis of the property) shall be
disregarded.
   (2) 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) 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.
24902.  Except as otherwise provided in this part, on the sale or
exchange of property the entire amount of the gain or loss,
determined under Section 24901, shall be recognized.
24905.  (a) Section 988 of the Internal Revenue Code, relating to
treatment of certain foreign currency transactions, shall apply,
except as otherwise provided.
   (b) Section 988(a)(3) of the Internal Revenue Code, relating to
source, shall not apply.
24905.5.  For each taxable year beginning on or after January 1,
1997, the amendments made to Section 988 of the Internal Revenue Code
by Section 13223 of the Revenue Reconciliation Act of 1993 (P.L.
103-66), relating to mark to market accounting method for securities
dealers, shall apply.


Disclaimer: These codes may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.