26 U.S.C. § 1001
Determination of amount of and recognition of gain or loss
# (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.
# (b) 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. 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 164(d) as imposed on the purchaser, and (2) there shall be taken into account amounts representing real property taxes which are treated under section 164(d) as imposed on the taxpayer if such taxes are to be paid by the purchaser.
# (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.
# (d) Installment sales
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 such payment is received.
# (e) Certain term interests
(1) In general In determining gain or loss from the sale or other disposition of a term interest in property, that portion of the adjusted basis of such interest which is determined pursuant to section 1014, 1015, or 1041 (to the extent that such adjusted basis is a portion of the entire adjusted basis of the property) shall be disregarded. (2) Term interest in property defined 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) Exception 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.
Source: view the official text
Cited by 71
- 26 CFR § 1.1001-1 — Computation of gain or loss.
- 26 CFR § 1.1001-4 — Modifications of certain derivative contracts.
- 26 CFR § 1.1001-6 — Transition from certain interbank offered rates.
- 26 CFR § 1.1002-1 — Sales or exchanges.
- 26 CFR § 1.1014-5 — Gain or loss.
- 26 CFR § 1.1015-1 — Basis of property acquired by gift after December 31, 1920.
- 26 CFR § 1.1031(j)-1 — Exchanges of multiple properties.
- 26 CFR § 1.1031(k)-1 — Treatment of deferred exchanges.
- 26 CFR § 1.1038-2 — Reacquisition and resale of property used as a principal residence.
- 26 CFR § 1.1055-2 — Determination of amount realized on the transfer of the right to hold real property subject to liabilities under a redeemable ground rent.
- 26 CFR § 1.1060-1 — Special allocation rules for certain asset acquisitions.
- 26 CFR § 1.1081-4 — Exchanges of property for property by corporations.
Show 48 more
- 26 CFR § 1.1202-1 — Deduction for capital gains.
- 26 CFR § 1.1274-5 — Assumptions.
- 26 CFR § 1.1274A-1 — Special rules for certain transactions where stated principal amount does not exceed $2,800,000.
- 26 CFR § 1.1275-2 — Special rules relating to debt instruments.
- 26 CFR § 1.1296-1 — Mark to market election for marketable stock.
- 26 CFR § 1.1361-5 — Termination of QSub election.
- 26 CFR § 1.1400Z2(b)-1 — Inclusion of gains that have been deferred under section 1400Z-2(a).
- 26 CFR § 1.141-7 — Special rules for output facilities.
- 26 CFR § 1.1446(f)-2 — Withholding on the transfer of a non-publicly traded partnership interest.
- 26 CFR § 1.1473-1 — Section 1473 definitions.
- 26 CFR § 1.148-4 — Yield on an issue of bonds.
- 26 CFR § 1.1502-13 — Intercompany transactions.
- 26 CFR § 1.1502-30 — Stock basis after certain triangular reorganizations.
- 26 CFR § 1.1502-31 — Stock basis after a group structure change.
- 26 CFR § 1.1502-80 — Applicability of other provisions of law.
- 26 CFR § 1.164-6 — Apportionment of taxes on real property between seller and purchaser.
- 26 CFR § 1.168(i)-1 — General asset accounts.
- 26 CFR § 1.217-2 — Deduction for moving expenses paid or incurred in taxable years beginning after December 31, 1969.
- 26 CFR § 1.25E-3 — Transfer of credit.
- 26 CFR § 1.30D-5 — Transfer of credit.
- 26 CFR § 1.331-1 — Corporate liquidations.
- 26 CFR § 1.332-1 — Distributions in liquidation of subsidiary corporation; general.
- 26 CFR § 1.338-11 — Effect of section 338 election on insurance company targets.
- 26 CFR § 1.338-3 — Qualification for the section 338 election.
- 26 CFR § 1.357-1 — Assumption of liability.
- 26 CFR § 1.358-6 — Stock basis in certain triangular reorganizations.
- 26 CFR § 1.367(b)-10 — Acquisition of parent stock or securities for property in triangular reorganizations.
- 26 CFR § 1.382-9 — Special rules under section 382 for corporations under the jurisdiction of a court in a title 11 or similar case.
- 26 CFR § 1.446-3 — Notional principal contracts.
- 26 CFR § 1.460-4 — Methods of accounting for long-term contracts.
- 26 CFR § 1.461-4 — Economic performance.
- 26 CFR § 1.468A-4 — Treatment of nuclear decommissioning fund.
- 26 CFR § 1.468A-5 — Nuclear decommissioning fund—miscellaneous provisions.
- 26 CFR § 1.468B-2 — Taxation of qualified settlement funds and related administrative requirements.
- 26 CFR § 1.468B-3 — Rules applicable to the transferor.
- 26 CFR § 1.468B-9 — Disputed ownership funds.
- 26 CFR § 1.597-5 — Taxable Transfers.
- 26 CFR § 1.61-12 — Income from discharge of indebtedness.
- 26 CFR § 1.61-6 — Gains derived from dealings in property.
- 26 CFR § 1.636-1 — Treatment of production payments as loans.
- 26 CFR § 1.643(b)-1 — Definition of income.
- 26 CFR § 1.752-1 — Treatment of partnership liabilities.
- 26 CFR § 1.860G-2 — Other rules.
- 26 CFR § 1.861-6 — Sale of real property.
- 26 CFR § 1.871-15 — Treatment of dividend equivalents.
- 26 CFR § 1.897-1 — Taxation of foreign investment in United States real property interests, definition of terms.
- 26 CFR § 1.9006-1 — Interest and penalties in case of certain taxable years.
- 26 CFR § 1.904(f)-2 — Recapture of overall foreign losses.
Nearby sections (25 sections)
- 987 · Branch transactions
- 988 · Treatment of certain foreign currency transactions
- 989 · Other definitions and special rules
- 991 · Taxation of a domestic international sales corporation
- 992 · Requirements of a domestic international sales corporation
- 993 · Definitions and special rules
- 994 · Inter-company pricing rules
- 995 · Taxation of DISC income to shareholders
- 996 · Rules for allocation in the case of distributions and losses
- 997 · Special subchapter C rules
- 999 · Reports by taxpayers; determinations
- 1000 · Reserved
- 1001 · Determination of amount of and recognition of gain or loss
- 1002 · Repealed. Pub. L. 94–455, title XIX, § 1901(b)(28)(B)(i), Oct.…
- 1011 · Adjusted basis for determining gain or loss
- 1012 · Basis of property—cost
- 1013 · Basis of property included in inventory
- 1014 · Basis of property acquired from a decedent
- 1015 · Basis of property acquired by gifts and transfers in trust
- 1016 · Adjustments to basis
- 1017 · Discharge of indebtedness
- 1018 · Repealed. Pub. L. 96–589, § 6(h)(1), Dec. 24, 1980, 94 Stat. 3410
- 1019 · Property on which lessee has made improvements
- 1020 · Repealed. Pub. L. 94–455, title XIX, § 1901(a)(125), Oct. 4,…
- 1021 · Sale of annuities