(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.
26 U.S.C. § 1001
AMENDMENTS1993-Subsec. (f). Pub. L. 103-66 struck out heading and text of subsec. (f). Text read as follows: "For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e)." 1984-Subsec. (e)(1). Pub. L. 98-369 inserted reference to section 1041. 1980-Subsec. (e)(1). Pub. L. 96-223 repealed the amendment made by Pub. L. 95-600. See 1978 Amendment note below. 1978-Subsec. (e)(1). Pub. L. 95-600 inserted reference to section 1023. See Repeals note below. 1976-Subsec. (c). Pub. L. 94-455 substituted provision recognizing the entire amount of gain or loss, except as otherwise provided, for provision referring to section 1002 for the determination of the extent of gain or loss to be recognized.1969-Subsec. (e). Pub. L. 91-172, §516(a), added subsec. (e).Subsec. (f). Pub. L. 91-172, §231(c)(2), added subsec. (f).
EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103-66 applicable to expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103-66 set out as a note under sectionof this title.
EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98-369 set out as an Effective Date note under sectionof this title.
EFFECTIVE DATE OF 1980 AMENDMENT AND REVIVAL OF PRIOR LAWAmendment by Pub. L. 96-223 (repealing section 702(c)(9) of Pub. L. 95-600 and the amendment made thereby, which had amended this section) applicable in respect of decedents dying after Dec. 31, 1976, and except for certain elections, this title to be applied and administered as if those repealed provisions had not been enacted, see section 401(b), (e) of Pub. L. 96-223 set out as a note under sectionof this title.
EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-600 effective as if included in the amendments and additions made by, and the appropriate provisions of Pub. L. 94-455 see section 702(c)(10) of Pub. L. 95-600 set out as a note under sectionof this title.
EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455 set out as a note under sectionof this title.
EFFECTIVE DATE OF 1969 AMENDMENT Amendment by section 231(c)(2) of Pub. L. 91-172 applicable to taxable years beginning after Dec. 31, 1969, see section 231(d) of Pub. L. 91-172 set out as a note under section Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (c) shall, at the election of the taxpayer (made at such time and in such manner as the Secretary or his delegate may by regulations prescribe), apply to transfers before January 1, 1970, but only with respect to payments made in taxable years ending after December 31, 1969, and beginning before January 1, 1980."of this title. Pub. L. 91-172, title V, §516(d), Dec. 30, 1969, 83 Stat. 648, as amended by Pub. L. 99-514, §2, Oct. 22, 1986, 100 Stat. 2095, provided that: "(1) The amendment made by subsection (a) [amending this section] shall apply to sales or other dispositions after October 9, 1969. "(2) The amendment made by subsection (b) [amending section of this title] shall apply to taxable years beginning after December 31, 1969."(3) The amendments made by subsection (c) [enacting section 1253 and amending sections and of this title] shall apply to transfers after December 31, 1969, except that section 1253(d)(1) of the
REPEALS Pub. L. 95-600, §702(c)(9), cited as a credit to this section, and the amendment made thereby, were repealed by Pub. L. 96-223, title IV, §401(a), 94 Stat. 299, resulting in the text of this section reading as it read prior to enactment of section 702(c)(9). See Effective Date of 1980 Amendment and Revival of Prior Law note set out above.
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- The term "taxpayer" means any person subject to any internal revenue tax.
- The term "transaction" includes a series of transactions.