Page:United States Statutes at Large Volume 47 Part 1.djvu/223

 72d CONGRESS. SESS. I. CH. 209. - JUNE 6, 1932. 199 (8 ) TRAN SFER IN TRUST AFTER DECEMBER 81, 1920 .-If the prop- 1NCOMs TAX erty was acquired after December 31, 1920, by a transfer in trust Trust property ao (other than by a transfer in trust by a bequest or devise) the basis ai 119 2o~01 ece mber shall be the same as it would be in the hands of the grantor, As in hands of grant. increased in the amount of gain or decreased in the amount of loss recognized to the grantor upon such transfer under the law ap licable to the year in which the transfer was made. (4) GIFT OR TRANSFER IN TRUST BEFORE JANUARY 1, 1921 .-If the trust beforo transfer property was acq uired by gift or transfe r in trus t on or before 1921 . December 31, 192 0, the basis sha ll be the fair m arket value of su ch Fair market value. property at the time of such acquisition. The provisions of this paragraph shall apply to the acq uisition of such property interes ts pot II niment l e1 of ap, as are specified in section 402(e) of the Revenue Act of 1921 or in voi. 42, p 279; Vol. section 302 (f) of the Revenue Act of 1924 or the Revenue Act of ", p. 305; oi .4a, p.71. 1926 (relating to property passing under power of appointment) regardless of the time of acquisition . (5) PROPERTY TRANSMrrTED AT DEATH .-If personal property tePro Property t. was acquired by specific bequest, or if real pro perty was ac quit ed by general or specific devise or by intestacy, the basis shall be the fair market value of the property at the time of the death of the deceden t . If t he prope rty was acquired by the decedent 's estat e from the decedent, the basis in the hands of the estate shall be the fair market value of the property at the time of the death of the deceden t . In all other cases if the property was acquired either by will or by intestacy, the basis shall be the fair market value of t the property at the time of the distribution to the taxpayer . In wtt' itst ti revoke the case of property transferred in trust to pay the income for life to or upon the order or direction of the grantor, with the right reserved to the grantor at all times prier to his death to revoke the rust, the basis of such property in the h ands of the persons entitled under the terms of the trust instrument to the property after the grantor's death shall, after such death, be the same as if the trust instrum ent had been a w ill exec uted on the day of the g rantor's death. (6) TAX-FREE EXCHANGES GENERALLY.If the prop erty was sg' on es, acquired upon an exchange described in section 112 (b) to (e ), Ante, p. 196. inclusive, the basis shall be the same as in the case of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized upon such exchange under the law applicable to the year in which the exchange was made. If the property so acquired consisted in part andpi by iey° exchange of the type of property permit ted by section 1 12 (b) to be rec eived property without the recognition of gain or loss, and in part of other property, the basis provided in this paragraph shall be allocated between the properties (other than money) received, and for the purpos e of the allocat ion ther e shall be assig ned to s uch oth er property an amount equivalent to its fair market value at the date of the exchange. Th is paragraph shall not apply to pro pe rty si a' St ock pt ac on. °OII' acquired by a corporation by the issuance of its stock or securities as the consideration in whole or in part for the transfer of the property to it. Transfers to Corpo. p e ('' ) TRANSFERS TO CORPORATION WHERE CONTROL OF PR OPERTY ratio n where contr ol of REMAINS IN SAME PE RSONS .-If t he pr opert y was acquired after property ~rIIemains in December 31, 1917 by a corporation in connection with a reorgani- ~B 1917 . corporation zation and immediately after the transfer an interest or control in such property of 50 per centum or more remained in the same arsons or any of them, then the basis shall be the same as it would in the hands of the transferor, increased in the amount of gain