2004 CFR Title 26, Volume 11

Title 26--Internal Revenue CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY PART 1--INCOME TAXES
	1.1001-1	Computation of gain or loss.
	1.1001-2	Discharge of liabilities.
	1.1001-3	Modifications of debt instruments.
	1.1001-4	Modifications of certain notional principal contracts.
	1.1001-5	European Monetary Union (conversion to the euro).
	1.1002-1	Sales or exchanges.
	1.1011-1	Adjusted basis.
	1.1011-2	Bargain sale to a charitable organization.
	1.1012-1	Basis of property.
	1.1012-2	Transfers in part a sale and in part a gift.
	1.1013-1	Property included in inventory.
	1.1014-1	Basis of property acquired from a decedent.
	1.1014-2	Property acquired from a decedent.
	1.1014-3	Other basis rules.
	1.1014-4	Uniformity of basis; adjustment to basis.
	1.1014-5	Gain or loss.
	1.1014-6	Special rule for adjustments to basis where property is acquired from a decedent prior to his death.
	1.1014-7	Example applying rules of 1.1014-4 through 1.1014-6 to case involving multiple interests.
	1.1014-8	Bequest, devise, or inheritance of a remainder interest.
	1.1014-9	Special rule with respect to DISC stock.
	1.1015-1	Basis of property acquired by gift after December 31, 1920.
	1.1015-2	Transfer of property in trust after December 31, 1920.
	1.1015-3	Gift or transfer in trust before January 1, 1921.
	1.1015-4	Transfers in part a gift and in part a sale.
	1.1015-5	Increased basis for gift tax paid.
	1.1016-1	Adjustments to basis; scope of section.
	1.1016-2	Items properly chargeable to capital account.
	1.1016-3	Exhaustion, wear and tear, obsolescence, amortization, and depletion for periods since February 28, 1913.
	1.1016-3T	Exhaustion, wear and tear, obsolescence, amortization, and depletion for periods since February 28, 1913 (temporary).
	1.1016-4	Exhaustion, wear and tear, obsolescence, amortization, and depletion; periods during which income was not subject to tax.
	1.1016-5	Miscellaneous adjustments to basis.
	1.1016-6	Other applicable rules.
	1.1016-10	Substituted basis.
	1.1017-1	Basis reductions following a discharge of indebtedness.
	1.1017-1T	Basis reductions following a discharge of indebtedness (temporary).
	1.1018-1	Adjusted basis; exception to section 270 of the Bankruptcy Act, as amended.
	1.1019-1	Property on which lessee has made improvements.
	1.1020-1	Election as to amounts allowed in respect of depreciation, etc., before 1952.
	1.1021-1	Sale of annuities.
	1.1031-0	Table of contents.
	1.1031(a)-1	Property held for productive use in trade or business or for investment.
	1.1031(a)-2	Additional rules for exchanges of personal property.
	1.1031(b)-1	Receipt of other property or money in tax-free exchange.
	1.1031(b)-2	Safe harbor for qualified intermediaries.
	1.1031(c)-1	Nonrecognition of loss.
	1.1031(d)-1	Property acquired upon a tax-free exchange.
	1.1031(d)-1T	Coordination of section 1060 with section 1031 (temporary).
	1.1031(d)-2	Treatment of assumption of liabilities.
	1.1031(e)-1	Exchange of livestock of different sexes.
	1.1031(j)-1	Exchanges of multiple properties.
	1.1031(k)-1	Treatment of deferred exchanges.
	1.1032-1	Disposition by a corporation of its own capital stock.
	1.1032-2	Disposition by a corporation of stock of a controlling corporation in certain triangular reorganizations.
	1.1032-3	Disposition of stock or stock options in certain transactions not qualifying under any other nonrecognition provision.
	1.1033(a)-1	Involuntary conversions; nonrecognition of gain.
	1.1033(a)-2	Involuntary conversion into similiar property, into money or into dissimilar property.
	1.1033(a)-3	Involuntary conversion of principal residence.
	1.1033(b)-1	Basis of property acquired as a result of an involuntary conversion.
	1.1033(c)-1	Disposition of excess property within irrigation project deemed to be involuntary conversion.
	1.1033(d)-1	Destruction or disposition of livestock because of disease.
	1.1033(e)-1	Sale or exchange of livestock solely on account of drought.
	1.1033(g)-1	Condemnation of real property held for productive use in trade or business or for investment.
	1.1033(h)-1	Effective date.
	1.1034-1	Sale or exchange of residence.
	1.1035-1	Certain exchanges of insurance policies.
	1.1036-1	Stock for stock of the same corporation.
	1.1037-1	Certain exchanges of United States obligations.
	1.1038-1	Reacquisitions of real property in satisfaction of indebtedness.
	1.1038-2	Reacquisition and resale of property used as a principal residence.
	1.1038-3	Election to have section 1038 apply for taxable years beginning after December 31, 1957.
	1.1039-1	Certain sales of low-income housing projects.
	1.1041-1T	Treatment of transfer of property between spouses or incident to divorce (temporary).
	1.1041-2	Redemptions of stock.
	1.1042-1T	Questions and answers relating to the sales of stock to employee stock ownership plans or certain cooperatives (temporary).
	1.1044(a)-1	Time and manner for making election under the Omnibus Budget Reconciliation Act of 1993.
	1.1051-1	Basis of property acquired during affiliation.
	1.1052-1	Basis of property established by Revenue Act of 1932.
	1.1052-2	Basis of property established by Revenue Act of 1934.
	1.1052-3	Basis of property established by the Internal Revenue Code of 1939.
	1.1053-1	Property acquired before March 1, 1913.
	1.1054-1	Certain stock of Federal National Mortgage Association.
	1.1055-1	General rule with respect to redeemable ground rents.
	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.
	1.1055-3	Basis of real property held subject to liabilities under a redeemable ground rent.
	1.1055-4	Basis of redeemable ground rent reserved or created in connection with transfers of real property before April 11, 1963.
	1.1059(e)-1	Non-pro rata redemptions.
	1.1059A-1	Limitation on taxpayer's basis or inventory cost in property imported from related persons.
	1.1060-1	Special allocation rules for certain asset acquisitions.
	1.1071-1	Gain from sale or exchange to effectuate policies of Federal Communications Commission.
	1.1071-2	Nature and effect of election.
	1.1071-3	Reduction of basis of property pursuant to election under section 1071.
	1.1071-4	Manner of election.
	1.1081-1	Terms used.
	1.1081-2	Purpose and scope of exception.
	1.1081-3	Exchanges of stock or securities solely for stock or securities.
	1.1081-4	Exchanges of property for property by corporations.
	1.1081-5	Distribution solely of stock or securities.
	1.1081-6	Transfers within system group.
	1.1081-7	Sale of stock or securities received upon exchange by members of system group.
	1.1081-8	Exchanges in which money or other nonexempt property is received.
	1.1081-9	Requirements with respect to order of Securities and Exchange Commission.
	1.1081-10	Nonapplication of other provisions of the Internal Revenue Code of 1954.
	1.1081-11	Records to be kept and information to be filed with returns.
	1.1082-1	Basis for determining gain or loss.
	1.1082-2	Basis of property acquired upon exchanges under section 1081 (a) or (e).
	1.1082-3	Reduction of basis of property by reason of gain not recognized under section 1081(b).
	1.1082-4	Basis of property acquired by corporation under section 1081(a), 1081(b), or 1081(e) as contribution of capital or surplus, or in consideration for its own stock or securities.
	1.1082-5	Basis of property acquired by shareholder upon tax-free distribution under section 1081(c) (1) or (2).
	1.1082-6	Basis of property acquired under section 1081(d) in transactions between corporations of the same system group.
	1.1083-1	Definitions.
	1.1091-1	Losses from wash sales of stock or securities.
	1.1091-2	Basis of stock or securities acquired in ``wash sales''.
	1.1092(b)-1T	Coordination of loss deferral rules and wash sale rules (temporary).
	1.1092(b)-2T	Treatment of holding periods and losses with respect to straddle positions (temporary).
	1.1092(b)-3T	Mixed straddles; straddle-by-straddle identification under section 1092(b)(2)(A)(i)(I) (temporary).
	1.1092(b)-4T	Mixed straddles; mixed straddle account (temporary).
	1.1092(b)-5T	Definitions (temporary).
	1.1092(c)-1	Qualified covered calls.
	1.1092(c)-2	Equity options with flexible terms.
	1.1092(c)-3	Qualifying over-the-counter options.
	1.1092(c)-4	Definitions.
	1.1092(d)-1	Definitions and special rules.
	1.1092(d)-2	Personal property.
	1.1201-1	Alternative tax.
	1.1202-0	Table of contents.
	1.1202-1	Deduction for capital gains.
	1.1202-2	Qualified small business stock; effect of redemptions.
	1.1211-1	Limitation on capital losses.
	1.1212-1	Capital loss carryovers and carrybacks.
	1.1221-1	Meaning of terms.
	1.1221-2	Hedging transactions.
	1.1222-1	Other terms relating to capital gains and losses.
	1.1223-1	Determination of period for which capital assets are held.
	1.1223-3	Rules relating to the holding periods of partnership interests.
	1.1231-1	Gains and losses from the sale or exchange of certain property used in the trade or business.
	1.1231-2	Livestock held for draft, breeding, dairy, or sporting purposes.
	1.1232-1	Bonds and other evidences of indebtedness; scope of section.
	1.1232-2	Retirement.
	1.1232-3	Gain upon sale or exchange of obligations issued at a discount after December 31, 1954.
	1.1232-3A	Inclusion as interest of original issue discount on certain obligations issued after May 27, 1969.
	1.1232-4	Obligations with excess coupons detached.
	1.1233-1	Gains and losses from short sales.
	1.1233-2	Hedging transactions.
	1.1234-1	Options to buy or sell.
	1.1234-2	Special rule for grantors of straddles applicable to certain options granted on or before September 1, 1976.
	1.1234-3	Special rules for the treatment of grantors of certain options granted after September 1, 1976.
	1.1234-4	Hedging transactions.
	1.1235-1	Sale or exchange of patents.
	1.1235-2	Definition of terms.
	1.1236-1	Dealers in securities.
	1.1237-1	Real property subdivided for sale.
	1.1238-1	Amortization in excess of depreciation.
	1.1239-1	Gain from sale or exchange of depreciable property between certain related taxpayers after October 4, 1976.
	1.1239-2	Gain from sale or exchange of depreciable property between certain related taxpayers on or before October 4, 1976.
	1.1240-1	Capital gains treatment of certain termination payments.
	1.1241-1	Cancellation of lease or distributor's agreement.
	1.1242-1	Losses on small business investment company stock.
	1.1243-1	Loss of small business investment company.
	1.1244(a)-1	Loss on small business stock treated as ordinary loss.
	1.1244(b)-1	Annual limitation.
	1.1244(c)-1	Section 1244 stock defined.
	1.1244(c)-2	Small business corporation defined.
	1.1244(d)-1	Contributions of property having basis in excess of value.
	1.1244(d)-2	Increases in basis of section 1244 stock.
	1.1244(d)-3	Stock dividend, recapitalizations, changes in name, etc.
	1.1244(d)-4	Net operating loss deduction.
	1.1244(e)-1	Records to be kept.
	1.1245-1	General rule for treatment of gain from dispositions of certain depreciable property.
	1.1245-2	Definition of recomputed basis.
	1.1245-3	Definition of section 1245 property.
	1.1245-4	Exceptions and limitations.
	1.1245-5	Adjustments to basis.
	1.1245-6	Relation of section 1245 to other sections.
	1.1247-1	Election by foreign investment companies to distribute income currently.
	1.1247-2	Computation and distribution of taxable income.
	1.1247-3	Treatment of capital gains.
	1.1247-4	Election by foreign investment company with respect to foreign tax credit.
	1.1247-5	Information and recordkeeping requirements.
	1.1248-1	Treatment of gain from certain sales or exchanges of stock in certain foreign corporations.
	1.1248-2	Earnings and profits attributable to a block of stock in simple cases.
	1.1248-3	Earnings and profits attributable to stock in complex cases.
	1.1248-4	Limitation on tax applicable to individuals.
	1.1248-5	Stock ownership requirements for less developed country corporations.
	1.1248-6	Sale or exchange of stock in certain domestic corporations.
	1.1248-7	Taxpayer to establish earnings and profits and foreign taxes.
	1.1249-1	Gain from certain sales or exchanges of patents, etc., to foreign corporations.
	1.1250-1	Gain from dispositions of certain depreciable realty.
	1.1250-2	Additional depreciation defined.
	1.1250-3	Exceptions and limitations.
	1.1250-4	Holding period.
	1.1250-5	Property with two or more elements.
	1.1251-1	General rule for treatment of gain from disposition of property used in farming where farm losses offset nonfarm income.
	1.1251-2	Excess deductions account.
	1.1251-3	Definitions relating to section 1251.
	1.1251-4	Exceptions and limitations.
	1.1252-1	General rule for treatment of gain from disposition of farm land.
	1.1252-2	Special rules.
	1.1254-0	Table of contents for section 1254 recapture rules.
	1.1254-1	Treatment of gain from disposition of natural resource recapture property.
	1.1254-2	Exceptions and limitations.
	1.1254-3	Section 1254 costs immediately after certain acquisitions.
	1.1254-4	Special rules for S corporations and their shareholders.
	1.1254-5	Special rules for partnerships and their partners.
	1.1254-6	Effective date of regulations.
	1.1256(e)-1	Identification of hedging transactions.
	1.1258-1	Netting rule for certain conversion transactions.
	1.1271-0	Original issue discount; effective date; table of contents.
	1.1271-1	Special rules applicable to amounts received on retirement, sale, or exchange of debt instruments.
	1.1272-1	Current inclusion of OID in income.
	1.1272-2	Treatment of debt instruments purchased at a premium.
	1.1272-3	Election by a holder to treat all interest on a debt instrument as OID.
	1.1273-1	Definition of OID.
	1.1273-2	Determination of issue price and issue date.
	1.1274-1	Debt instruments to which section 1274 applies.
	1.1274-2	Issue price of debt instruments to which section 1274 applies.
	1.1274-3	Potentially abusive situations defined.
	1.1274-4	Test rate.
	1.1274-5	Assumptions.
	1.1274A-1	Special rules for certain transactions where stated principal amount does not exceed $2,800,000.
	1.1275-1	Definitions.
	1.1275-2	Special rules relating to debt instruments.
	1.1275-3	OID information reporting requirements.
	1.1275-4	Contingent payment debt instruments.
	1.1275-5	Variable rate debt instruments.
	1.1275-6	Integration of qualifying debt instruments.
	1.1275-7	Inflation-indexed debt instruments.
	1.1286-1	Tax treatment of certain stripped bonds and stripped coupons.
	1.1286-2	Stripped inflation-indexed debt instruments.
	1.1287-1	Denial of capital gains treatment for gains on registration-required obligations not in registered form.
	1.1291-0	Treatment of shareholders of certain passive foreign investment companies; table of contents.
	1.1291-1	Taxation of U.S. persons that are shareholders of PFICs that are not pedigreed QEFs.
	1.1291-9	Deemed dividend election.
	1.1291-10	Deemed sale election.
	1.1293-0	Table of contents.
	1.1293-1	Current taxation of income from qualified electing funds.
	1.1294-0	Table of contents.
	1.1294-1T	Election to extend the time for payment of tax on undistributed earnings of a qualified electing fund (temporary).
	1.1295-0	Table of contents.
	1.1295-1	Qualified electing funds.
	1.1295-3	Retroactive elections.
	1.1296(e)-1	Definition of marketable stock.
	1.1297-0	Table of contents.
	1.1297-3T	Deemed sale election by a United States person that is a shareholder of a passive foreign investment company (temporary).
	1.1301-1	Averaging of farm income.
	1.1311(a)-1	Introduction.
	1.1311(a)-2	Purpose and scope of section 1311.
	1.1311(b)-1	Maintenance of an inconsistent position.
	1.1311(b)-2	Correction not barred at time of erroneous action.
	1.1311(b)-3	Existence of relationship in case of adjustment by way of deficiency assessment.
	1.1312-1	Double inclusion of an item of gross income.
	1.1312-2	Double allowance of a deduction or credit.
	1.1312-3	Double exclusion of an item of gross income.
	1.1312-4	Double disallowance of a deduction or credit.
	1.1312-5	Correlative deductions and inclusions for trusts or estates and legatees, beneficiaries, or heirs.
	1.1312-6	Correlative deductions and credits for certain related corporations.
	1.1312-7	Basis of property after erroneous treatment of a prior transaction.
	1.1312-8	Law applicable in determination of error.
	1.1313(a)-1	Decision by Tax Court or other court as a determination.
	1.1313(a)-2	Closing agreement as a determination.
	1.1313(a)-3	Final disposition of claim for refund as a determination.
	1.1313(a)-4	Agreement pursuant to section 1313(a)(4) as a determination.
	1.1313(c)-1	Related taxpayer.
	1.1314(a)-1	Ascertainment of amount of adjustment in year of error.
	1.1314(a)-2	Adjustment to other barred taxable years.
	1.1314(b)-1	Method of adjustment.
	1.1314(c)-1	Adjustment unaffected by other items.
	1.1321-1	Involuntary liquidation of lifo inventories.
	1.1321-2	Liquidation and replacement of lifo inventories by acquiring corporations.
	1.1331-1	Recoveries in respect of war losses.
	1.1332-1	Inclusion in gross income of war loss recoveries.
	1.1333-1	Tax adjustment measured by prior benefits.
	1.1334-1	Restoration of value of investments.
	1.1335-1	Elective method; time and manner of making election and effect thereof.
	1.1336-1	Basis of recovered property.
	1.1337-1	Determination of tax benefits from allowable deductions.
	1.1341-1	Restoration of amounts received or accrued under claim of right.
	1.1342-1	Computation of tax where taxpayer recovers substantial amount held by another under claim of right; effective date.
	1.1346-1	Recovery of unconstitutional taxes.
	1.1347-1	Tax on certain amounts received from the United States.
	1.1348-1	Fifty-percent maximum tax on earned income.
	1.1348-2	Computation of the fifty-percent maximum tax on earned income.
	1.1348-3	Definitions.
	1.1361-0	Table of contents.
	1.1361-1	S corporation defined.
	1.1361-2	Definitions relating to S corporation subsidiaries.
	1.1361-3	QSub election.
	1.1361-4	Effect of QSub election.
	1.1361-5	Termination of QSub election.
	1.1361-6	Effective date.
	1.1362-0	Table of contents.
	1.1362-1	Election to be an S corporation.
	1.1362-2	Termination of election.
	1.1362-3	Treatment of S termination year.
	1.1362-4	Inadvertent terminations.
	1.1362-5	Election after termination.
	1.1362-6	Elections and consents.
	1.1362-7	Effective dates.
	1.1362-8	Dividends received from affiliated subsidiaries.
	1.1363-1	Effect of election on corporation.
	1.1363-2	Recapture of LIFO benefits.
	1.1366-0	Table of contents.
	1.1366-1	Shareholder's share of items of an S corporation.
	1.1366-2	Limitations on deduction of passthrough items of an S corporation to its shareholders.
	1.1366-3	Treatment of family groups.
	1.1366-4	Special rules limiting the passthrough of certain items of an S corporation to its shareholders.
	1.1366-5	Effective date.
	1.1367-0	Table of contents.
	1.1367-1	Adjustments to basis of shareholder's stock in an S corporation.
	1.1367-2	Adjustments to basis of indebtedness to shareholder.
	1.1367-3	Effective date and transition rule.
	1.1368-0	Table of contents.
	1.1368-1	Distributions by S corporations.
	1.1368-1T	Distributions by S corporations (temporary).
	1.1368-2	Accumulated adjustments account (AAA).
	1.1368-3	Examples.
	1.1368-4	Effective date and transition rule.
	1.1374-0	Table of contents.
	1.1374-1	General rules and definitions.
	1.1374-2	Net recognized built-in gain.
	1.1374-3	Net unrealized built-in gain.
	1.1374-4	Recognized built-in gain or loss.
	1.1374-5	Loss carryforwards.
	1.1374-6	Credits and credit carryforwards.
	1.1374-7	Inventory.
	1.1374-8	Section 1374(d)(8) transactions.
	1.1374-9	Anti-stuffing rule.
	1.1374-10	Effective date and additional rules.
	1.1375-1	Tax imposed when passive investment income of corporation having subchapter C earnings and profits exceed 25 percent of gross receipts.
	1.1377-0	Table of contents.
	1.1377-1	Pro rata share.
	1.1377-1T	Pro rata share (temporary).
	1.1377-2	Post-termination transition period.
	1.1377-3	Effective dates.
	1.1378-1	Taxable year of S corporation.
	1.1374-1A	Tax imposed on certain capital gains.
	1.1381-1	Organizations to which part applies.
	1.1381-2	Tax on certain farmers' cooperatives.
	1.1382-1	Taxable income of cooperatives; gross income.
	1.1382-2	Taxable income of cooperatives; treatment of patronage dividends.
	1.1382-3	Taxable income of cooperatives; special deductions for exempt farmers' cooperatives.
	1.1382-4	Taxable income of cooperatives; payment period for each taxable year.
	1.1382-5	Taxable income of cooperatives; products marketed under pooling arrangements.
	1.1382-6	Taxable income of cooperatives; treatment of earnings received after patronage occurred.
	1.1382-7	Special rules applicable to cooperative associations exempt from tax before January 1, 1952.
	1.1383-1	Computation of tax where cooperative redeems nonqualified written notices of allocation.
	1.1385-1	Amounts includible in patron's gross income.
	1.1388-1	Definitions and special rules.
	1.1394-0	Table of contents.
	1.1394-1	Enterprise zone facility bonds.
	1.1396-1	Qualified zone employees.
	1.1397E-1	Qualified zone academy bonds.
	1.1398-1	Treatment of passive activity losses and passive activity credits in individuals' title 11 cases.
	1.1398-2	Treatment of section 465 losses in individuals' title 11 cases.
	1.1398-3	Treatment of section 121 exclusion in individuals' title 11 cases.
	1.1400L(b)-1T	Additional first year depreciation deduction for qualified New York Liberty Zone property (temporary).