Page:United States Statutes at Large Volume 52.djvu/533

 PUBLIC LAWS-CH. 289-MAY 28, 1938 Wash sales of stock. Post, p. 503. Basis. Property acquired during affiliation. Determination of basis. " Period of affilia- tion" defined. Basis in 1929 and any subsequent year. Post, p. 608. 45 Stat. 831 . 47 Stat. 213. 48 Stat. 721. 49 Stat. 1684. Adjustments au- thorized. Basis established by Revenue Act of 1932. 45 Stat. 819. Partnership prop- erty acquired after ebruary 28, 1913. the same as in the case of the property so converted, decreased in the amount of any money received by the taxpayer which was not expended in accordance with the provisions of law (appli- cable to the year in which such conversion was made) determin- ing the taxable status of the gain or loss upon such conversion, and increased in the amount of gain or decreased in the amount of loss to the taxpayer recognized upon such conversion under the law applicable to the year in which such conversion was made. (10) WASH SALES OF STOCK.-If the property consists of stock or securities the acquisition of which (or the contract or option to acquire which) resulted in the nondeductibility (under section 118 of this Act or corresponding provisions of prior income tax laws, relating to wash sales) of the loss from the sale or other disposition of substantially identical stock or securities, then the basis shall be the basis of the stock or securities so sold or dis- posed of, increased or decreased, as the case may be, by the difference, if any, between the price at which the property was acquired and the price at which such substantially identical stock or securities were sold or otherwise disposed of. (11) PROPETrr ACQUIRED DURING AFFILIATION.-In the case of property acquired by a corporation, during a period of affiliation, from a corporation with which it was affiliated, the basis of such property, after such period of affiliation, shall be determined, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, without regard to inter- company transactions in respect of which gain or loss was not recognized. For the purposes of this paragraph, the term "period of affiliation" means the period during which such corporations were affiliated (determined in accordance with the law applicable thereto) but does not include any taxable year beginning on or after January 1, 1922, unless a consolidated return was made, nor any taxable year after the taxable year 1928. The basis in case of property acquired by a corporation during any period, in the taxable year 1929 or any subsequent taxable year, in respect of which a consolidated return is made by such corporation under section 141 of this Act or the Revenue Act of 1928 or the Revenue Act of 1932 or the Revenue Act of 1934 or the Revenue Act of 1936, shall be determined in ac- cordance with regulations prescribed under section 141 (b) of this Act or the Revenue Act of 1928 or the Revenue Act of 1!)32 or the Revenue Act of 1934 or the Revenue Act of 1936. Tho basis in the case of property held by a corporation during any period, in the taxable year 1929 or any subsequent taxable year, in respect of which a consolidated return is made by such corporation under section 141 of this Act or the Revenue Act of 1928 or the Revenue Act of 1932 or the Revenue Act of 1934 or the Revenue Act of 1936, shall be adjusted in respect of any items relating to such period, in accordance with regulations pre- scribed under section 141 (b) of this Act or the Revenue Act of 1928 or the Revenue Act of 1932 or the Revenue Act of 1934 or the Revenue Act of 1936, applicable to such period. (12) BASIS ESTABrISLED BY REVENUE ACT OF 1932.- If the property was acquired, after February 28. 1913, in any taxable year beginning prior to January 1, 1934, and the basis thereof, for the purposes of the Revenue Act of 1932 was prescribed by section 113 (a) (6), (7), or (9) of such Act, then for the pur- poses of this Act the basis shall be the same as the basis therein prescribed in the Revenue Act of 1932. (13) PARTNERSHnPS.-I f the property was acquired, after Feb- ruary 28, 1913, by a partnership and the basis is not otherwise 492 [52 STAT.

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