Internal Revenue Code:Sec. 1001. Determination of amount of and recognition of gain or loss

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Location in Internal Revenue Code

     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 I - DETERMINATION OF AMOUNT OF AND RECOGNITION OF GAIN OR LOSS
       

Statute

    Sec. 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.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 295; Pub. L. 91-172, title II,
    Sec. 231(c)(2), title V, Sec. 516(a), Dec. 30, 1969, 83 Stat. 579,
    646; Pub. L. 94-455, title XIX, Sec. 1901(a)(121), Oct. 4, 1976, 90
    Stat. 1784; Pub. L. 95-600, title VII, Sec. 702(c)(9), Nov. 6,
    1978, 92 Stat. 2928; Pub. L. 96-223, title IV, Sec. 401(a), Apr. 2,
    1980, 94 Stat. 299; Pub. L. 98-369, div.  A, title IV, Sec.
    421(b)(4), July 18, 1984, 98 Stat. 794; Pub. L. 103-66, title XIII,
    Sec. 13213(a)(2)(E), Aug. 10, 1993, 107 Stat. 474.)
 

Miscellaneous

                                 AMENDMENTS
      1993 - 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, Sec. 516(a), added subsec.
    (e).
      Subsec. (f). Pub. L. 91-172, Sec. 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 section 62 of 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 section 1041 of
    this title.
         EFFECTIVE DATE OF 1980 AMENDMENT AND REVIVAL OF PRIOR LAW
      Amendment 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 section 1023 of 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 section 1014 of 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 section 2 of 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 217 of this title.
      Section 516(d) of Pub. L. 91-172, as amended by Pub. L. 99-514,
    Sec. 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 1231
    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 162 and 1016 of this title) shall apply
    to transfers after December 31, 1969, except that section
    1253(d)(1) of the 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.''
                                  REPEALS
      Pub. L. 95-600, Sec. 702(c)(9), cited as a credit to this
    section, and the amendment made thereby, were repealed by Pub. L.
    96-223, title IV, Sec. 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.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 167, 331, 368 of this
    title.