Taxation Code List- Gains from Property

A. Factors in the Determination of Gain (pg. 122)

Internal Revenue Code:

Section 1001 (Determination of Amount of and Recognition of Gain or Loss)

1) Section 1001(a): Computation of Gain or Loss-

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 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized.

2) Section 1001(b), first sentence: Amount Realized-

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.

3) Section 1001(c): Recognition of Gain or Loss-

Except as otherwise provided in this subtitle, the entire amount of the gain or loss, determined under this section, on the sale or exchange of property, shall be recognized.

Section 1011 (Adjusted Basis for Determining Gain or Loss)

4) Section 1011(a): General Rule-

The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under Section 1012 or other applicable sections of this sub-chapter and sub-chapters C (relating to partners and partnerships), and P (relating to capital gains and losses), adjusted as provided in section 1016.

Section 1012 (Basis of Property- Cost)

5) Section 1012(a): In General-

The basis of property shall be the cost of such property, except as otherwise provided in this sub-chapter and sub-chapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses).

Section 1012(b): Special Rule for Apportioned Real Estate Taxes-

The 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....