26 U.S.C. § 1012
Basis of property—cost
# (a) In general
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 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.
# (c) Determinations by account
(1) In general In 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 general Except 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 account If 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) Definitions For 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 general In 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 transfer In 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 general Rules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection. (B) Average basis method Notwithstanding 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 plan For purposes of this subsection— (A) In general The 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 plan Stock 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.
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Cited by 66
- 26 CFR § 1.1001-1 — Computation of gain or loss.
- 26 CFR § 1.1011-1 — Adjusted basis.
- 26 CFR § 1.1014-6 — Special rule for adjustments to basis where property is acquired from a decedent prior to his death.
- 26 CFR § 1.1032-1 — Disposition by a corporation of its own capital stock.
- 26 CFR § 1.1033(a)-2 — Involuntary conversion into similar property, into money or into dissimilar property.
- 26 CFR § 1.1039-1 — Certain sales of low-income housing projects.
- 26 CFR § 1.1059A-1 — Limitation on taxpayer's basis or inventory cost in property imported from related persons.
- 26 CFR § 1.1223-1 — Determination of period for which capital assets are held.
- 26 CFR § 1.1245-2 — Definition of recomputed basis.
- 26 CFR § 1.1250-2 — Additional depreciation defined.
- 26 CFR § 1.1254-0 — Table of contents for section 1254 recapture rules.
- 26 CFR § 1.1254-3 — Section 1254 costs immediately after certain acquisitions.
Show 48 more
- 26 CFR § 1.1254-4 — Special rules for S corporations and their shareholders.
- 26 CFR § 1.1254-5 — Special rules for partnerships and their partners.
- 26 CFR § 1.1361-1 — S corporation defined.
- 26 CFR § 1.1400Z2(d)-1 — Qualified opportunity funds and qualified opportunity zone businesses.
- 26 CFR § 1.1400Z2(d)-2 — Qualified opportunity zone business property.
- 26 CFR § 1.1502-13 — Intercompany transactions.
- 26 CFR § 1.1502-32 — Investment adjustments.
- 26 CFR § 1.163(j)-1 — Definitions.
- 26 CFR § 1.163-10T — Qualified residence interest (temporary).
- 26 CFR § 1.164-6 — Apportionment of taxes on real property between seller and purchaser.
- 26 CFR § 1.167(l)-2 — Public utility property; election as to post-1969 property representing growth in capacity.
- 26 CFR § 1.168(k)-2 — Additional first year depreciation deduction for property acquired and placed in service after September 27, 2017.
- 26 CFR § 1.170A-4 — Reduction in amount of charitable contributions of certain appreciated property.
- 26 CFR § 1.179-4 — Definitions.
- 26 CFR § 1.199A-2 — Determination of W-2 wages and unadjusted basis immediately after acquisition of qualified property.
- 26 CFR § 1.263(a)-3 — Amounts paid to improve tangible property.
- 26 CFR § 1.263(a)-4 — Amounts paid to acquire or create intangibles.
- 26 CFR § 1.266-1 — Taxes and carrying charges chargeable to capital account and treated as capital items.
- 26 CFR § 1.338(h)(10)-1 — Deemed asset sale and liquidation.
- 26 CFR § 1.358-2 — Allocation of basis among nonrecognition property.
- 26 CFR § 1.42-6 — Buildings qualifying for carryover allocations.
- 26 CFR § 1.45D-1 — New markets tax credit.
- 26 CFR § 1.46-3 — Qualified investment.
- 26 CFR § 1.48-3 — Used section 38 property.
- 26 CFR § 1.514(a)-2 — Business lease rents and deductions for taxable years beginning before January 1, 1970.
- 26 CFR § 1.585-5 — Denial of bad debt reserves for large banks.
- 26 CFR § 1.611-2 — Rules applicable to mines, oil and gas wells, and other natural deposits.
- 26 CFR § 1.611-3 — Rules applicable to timber.
- 26 CFR § 1.612-1 — Basis for allowance of cost depletion.
- 26 CFR § 1.617-3 — Recapture of exploration expenditures.
- 26 CFR § 1.636-1 — Treatment of production payments as loans.
- 26 CFR § 1.672(f)-4 — Recharacterization of purported gifts.
- 26 CFR § 1.751-1 — Unrealized receivables and inventory items.
- 26 CFR § 1.822-10 — Amortization of premium and accrual of discount.
- 26 CFR § 1.822-3 — Amortization of premium and accrual of discount.
- 26 CFR § 1.822-7 — Amortization of premium and accrual of discount.
- 26 CFR § 1.83-4 — Special rules.
- 26 CFR § 1.897-6T — Nonrecognition exchanges applicable to corporations, their shareholders, and other taxpayers, and certain transfers of property in corporate reorganizations (temporary).
- 26 CFR § 1.904-4 — Separate application of section 904 with respect to certain categories of income.
- 26 CFR § 1.907(a)-0 — Introduction (for taxable years beginning after December 31, 1982).
- 26 CFR § 1.9200-1 — Deduction for motor carrier operating authority.
- 26 CFR § 1.9200-2 — Manner of taking deduction.
- 26 CFR § 301.7701-3 — Classification of certain business entities.
- 26 CFR § 301.9100-8 — Time and manner of making certain elections under the Technical and Miscellaneous Revenue Act of 1988.
- 26 U.S.C. § 1011 — Adjusted basis for determining gain or loss
- 26 U.S.C. § 1033 — Involuntary conversions
- 26 U.S.C. § 1043 — Sale of property to comply with conflict-of-interest requirements
- 26 U.S.C. § 1045 — Rollover of gain from qualified small business stock to another qualified small business stock
Nearby sections (25 sections)
- 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
- 1022 · Repealed. Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010,…
- 1023 · Cross references
- 1024 · Renumbered § 1023