Page:United States Statutes at Large Volume 68A.djvu/335

 CH. 1—NORMAL TAXES AND SURTAXES

295

Subchapter O—Gain or Loss on Disposition of Property Part Part Part Part Part Part Part

.teLfit '>^*' "

I. Determination of amount of and recognition of gain or loss. II. Basis rules of general application. III. Common nontaxable exchanges. IV. Special rules. V. Changes to effectuate F. C. C. policy. VI. Exchanges in obedience to S. E. C. orders. VII. Wash sales of stock or securities.

PART I—DETERMINATION OF AMOUNT OF RECOGNITION OF GAIN OR LOSS >-,- -

AND'

Sec. 1001. Determination of amount of and recognition of gain or loss. Sec. 1002. Recognition of gain or loss.

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 L O S S. — I n the case of a sale or exchange of property, the extent to which the gain or loss determined under this section shall be recognized for purposes of this subtitle shall be determined under section 1002. (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. SEC. 1002. RECOGNITION OF GAIN OR LOSS.

Except as otherwise provided in this subtitle, on the sale or exchange of property the entire amount of the gain or loss, determined under section 1001, shall be recognized.

§ 1002

�