[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: 26CFR1.1052-2]

[Page 172]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1052-2  Basis of property established by Revenue Act of 1934.

    Section 1052(b) provides that if property was acquired after 
February 28, 1913, in any taxable year beginning before January 1, 1936, 
and the basis of the property for the purposes of the Revenue Act of 
1934 (48 Stat. 683) was prescribed by section 113(a) (6), (7), or (8) of 
that act, then for purposes of subtitle A of the Code, the basis shall 
be the same as the basis prescribed in the Revenue Act of 1934. For 
example, if after December 31, 1920, and in any taxable year beginning 
before January 1, 1936, property was acquired by a corporation by the 
issuance of its stock or securities in connection with a transaction 
which is not described in section 112(b)(5) of the Internal Revenue Code 
of 1939 but which is described in section 112(b)(5) of the Revenue Act 
of 1934, the basis of the property so acquired shall be the same as it 
would be in the hands of the transferor, with proper adjustments to the 
date of the exchange.