2015 US Code
Title 26 - Internal Revenue Code (Sections 1 - 9834)
Subtitle A - Income Taxes (Sections 1 - 1564)
Chapter 1 - Normal Taxes and Surtaxes (Sections 1 - 1400U-3)
Subchapter O - Gain or Loss on Disposition of Property (Sections 1001 - 1111)
Part II - Basis Rules of General Application (Sections 1011 - 1024)
Sec. 1012 - Basis of property-cost
Publication Title | United States Code, 2012 Edition, Supplement 3, Title 26 - INTERNAL REVENUE CODE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | 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. 1012 - Basis of property-cost |
Contains | section 1012 |
Date | 2015 |
Laws In Effect As Of Date | January 3, 2016 |
Positive Law | No |
Disposition | standard |
Source Credit | Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 110-343, div. B, title IV, §403(b), Oct. 3, 2008, 122 Stat. 3857; Pub. L. 113-295, div. A, title II, §§210(f)(1)-(3), 220(n), Dec. 19, 2014, 128 Stat. 4031, 4032, 4036. |
Statutes at Large References | 122 Stat. 3857, 3860 128 Stat. 4031 |
Public and Private Laws | Public Law 110-343, Public Law 113-295 |
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The basis of property shall be the cost of such property, except as otherwise provided in 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).
(b) Special rule for apportioned real estate taxesThe cost of real property shall not include any amount in respect of real property taxes which are treated under section 164(d) as imposed on the taxpayer.
(c) Determinations by account(1) In generalIn the case of the sale, exchange, or other disposition of a specified security on or after the applicable date, the conventions prescribed by regulations under this section shall be applied on an account by account basis.
(2) Application to certain regulated investment companies(A) In generalExcept as provided in subparagraph (B), any stock for which an average basis method is permissible under this section which is acquired before January 1, 2012, shall be treated as a separate account from any such stock acquired on or after such date.
(B) Election for treatment as single accountIf a regulated investment company described in subparagraph (A) elects to have this subparagraph apply with respect to one or more of its stockholders—
(i) subparagraph (A) shall not apply with respect to any stock in such regulated investment company held by such stockholders, and
(ii) all stock in such regulated investment company which is held by such stockholders shall be treated as covered securities described in section 6045(g)(3) without regard to the date of the acquisition of such stock.
A rule similar to the rule of the preceding sentence shall apply with respect to a broker holding such stock as a nominee.
(3) DefinitionsFor purposes of this section, the terms "specified security" and "applicable date" shall have the meaning given such terms in section 6045(g).
(d) Average basis for stock acquired pursuant to a dividend reinvestment plan(1) In generalIn the case of any stock acquired after December 31, 2011, in connection with a dividend reinvestment plan, the basis of such stock while held as part of such plan shall be determined using one of the methods which may be used for determining the basis of stock in a regulated investment company.
(2) Treatment after transferIn the case of the transfer to another account of stock to which paragraph (1) applies, such stock shall have a cost basis in such other account equal to its basis in the dividend reinvestment plan immediately before such transfer (properly adjusted for any fees or other charges taken into account in connection with such transfer).
(3) Separate accounts; election for treatment as single account(A) In generalRules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection.
(B) Average basis methodNotwithstanding paragraph (1), in the case of an election under rules similar to the rules of subsection (c)(2)(B) with respect to stock held in connection with a dividend reinvestment plan, the average basis method is permissible with respect to all such stock without regard to the date of the acquisition of such stock.
(4) Dividend reinvestment planFor purposes of this subsection—
(A) In generalThe term "dividend reinvestment plan" means any arrangement under which dividends on any stock are reinvested in stock identical to the stock with respect to which the dividends are paid.
(B) Initial stock acquisition treated as acquired in connection with planStock shall be treated as acquired in connection with a dividend reinvestment plan if such stock is acquired pursuant to such plan or if the dividends paid on such stock are subject to such plan.
(Aug. 16, 1954, ch. 736, 68A Stat. 296; Pub. L. 110–343, div. B, title IV, §403(b), Oct. 3, 2008, 122 Stat. 3857; Pub. L. 113–295, div. A, title II, §§210(f)(1)–(3), 220(n), Dec. 19, 2014, 128 Stat. 4031, 4032, 4036.)
AMENDMENTS2014—Subsec. (c)(2). Pub. L. 113–295, §210(f)(1)(A), substituted "regulated investment companies" for "funds" in heading.
Subsec. (c)(2)(A). Pub. L. 113–295, §220(n), substituted "this section" for "section 1012".
Subsec. (c)(2)(B). Pub. L. 113–295, §210(f)(1)(C), substituted "regulated investment company" for "fund" wherever appearing.
Pub. L. 113–295, §210(f)(1)(B), struck out "fund" after "Election" in heading.
Subsec. (d)(1). Pub. L. 113–295, §210(f)(2), substituted "December 31, 2011" for "December 31, 2010" and "a regulated investment company" for "an open-end fund".
Subsec. (d)(3). Pub. L. 113–295, §210(f)(3), amended par. (3) generally. Prior to amendment, text read as follows: "Rules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection."
2008—Pub. L. 110–343 designated first sentence as subsec. (a) and second sentence as subsec. (b), inserted headings, and added subsecs. (c) and (d).
EFFECTIVE DATE OF 2014 AMENDMENTAmendment by section 210(f)(1)–(3) of Pub. L. 113–295 effective as if included in the provisions of the Energy Improvement and Extension Act of 2008, Pub. L. 110–343, div. B, to which such amendment relates, see section 210(h) of Pub. L. 113–295, set out as a note under section 45 of this title.
EFFECTIVE DATE OF 2008 AMENDMENTPub. L. 110–343, div. B, title IV, §403(e), Oct. 3, 2008, 122 Stat. 3860, provided that:
"(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section [enacting sections 6045A and 6045B of this title and amending this section and sections 6045 and 6724 of this title] shall take effect on January 1, 2011.
"(2) Extension of period for statements sent to customers.—The amendments made by subsection (a)(3) [amending section 6045 of this title] shall apply to statements required to be furnished after December 31, 2008."
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