[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: 26CFR1.1055-2]

[Page 174]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1055-2  Determination of amount realized on the transfer of the 

right to hold real property subject to liabilities under a redeemable 
ground rent.

    In determining the amount realized from a transfer, occurring on or 
after April 11, 1963, of the right to hold real property subject to 
liabilities under a redeemable ground rent, such ground rent shall be 
accounted for in the same manner as a mortgage for an amount of money 
equal to the redemption price of the ground rent. The provisions of this 
section apply in respect of any such transfer even though such ground 
rent was created prior to April 11, 1963. For provisions relating to the 
determination of the amount of and recognition of gain or loss from the 
sale or other disposition of property, see section 1001 and the 
regulations thereunder.

[T.D. 6821, 30 FR 6217, May 4, 1965]