[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1018-1]

[Page 77-78]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1018-1  Adjusted basis; exception to section 270 of the Bankruptcy 
Act, as amended.

    The adjustment to basis provided by section 270 of the Bankruptcy 
Act, as amended (11 U.S.C. 670), and by Sec. Sec. 1.1016-7 and 1.1016-8 
shall not be made if, in a proceeding under section 77B of such Act, as 
amended (11 U.S.C. 207; 48 Stat. 912), indebtedness was canceled in 
pursuance of a plan of reorganization which was consummated by 
adjustment of the capital or debt structure of the insolvent 
corporation, and the final judgment or decree in such proceeding was 
entered before September 22, 1938. Section 1018 and this section do not 
apply if the plan of reorganization under such section 77B was 
consummated by the transfer of assets of

[[Page 78]]

the insolvent corporation to another corporation.