Title 26 — Internal Revenue Code
Part I · Chapter 1 — Normal Taxes and Surtaxes
§ 1001. Determination of amount of and recognition of gain or loss
Statutory text
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.
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—
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
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.
Recognition of gain or loss
Except as otherwise provided in this subtitle, the entire amount of the gain or loss, determined under this section, on the sale or exchange of property shall be recognized.
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.
Certain term interests
In general
In determining gain or loss from the sale or other disposition of a term interest in property, that portion of the adjusted basis of such interest which is determined pursuant to section 1014, 1015, or 1041 (to the extent that such adjusted basis is a portion of the entire adjusted basis of the property) shall be disregarded.
Term interest in property defined
For purposes of paragraph (1), the term “term interest in property” means—
a life interest in property,
an interest in property for a term of years, or
an income interest in a trust.
Exception
Paragraph (1) shall not apply to a sale or other disposition which is a part of a transaction in which the entire interest in property is transferred to any person or persons.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 16, 1954, ch. 736, 68A Stat. 295 · 68A Stat. 295
Enacted · 26 U.S.C. § 1001
Aug. 16, 1954, ch. 736, 68A Stat. 295
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 295Tax Reform Act of 1969
Pub. L. 91–172 § 516(a) · 83 Stat. 487
Added · 26 U.S.C. § 1001(e)
Pub. L. 91–172, § 516(a), added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 91–172, § 516(a), added subsec. (e).Enacted provision · exact public law section
(a) Sales of Term Interests.— Section 1001 (relating to determination of amount of and recognition of gain or loss) is amended by adding at the end thereof the following new subsection: “(e) Certain Term Interests.— “(1) In general.— In determining gain or loss from the sale or other disposition of a term interest in property, that portion of the adjusted basis of such interest which is determined pursuant to 26 USC 1014, 1015. section 1014 or 1015 (to the extent that such adjusted basis is a portion of the entire adjusted basis of the property) shall be disregarded. “(2) Term interest in property defined.— For purposes of paragraph (1), the term ‘term interest in property’ means— “(A) a life interest in property, “(B) an interest in property for a term of years, or “(C) an income interest in a trust. “(3) Exception.— Paragraph (1) shall not apply to a sale or other disposition which is a part of a transaction in which the entire interest in property is transferred to any person or persons.”Tax Reform Act of 1969
Pub. L. 91–172 § 231(c)(2) · 83 Stat. 487
Added · 26 U.S.C. § 1001(f)
Pub. L. 91–172, § 231(c)(2), added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 91–172, § 231(c)(2), added subsec. (f).Enacted provision · exact public law section
(2) Section 1001 (relating to determination of amount and recognition Post, p. 646. of gain or loss) is amended by adding after subsection (e) (as added by section 516(a) of this Act) the following new subsection: “(f) Cross Reference.— “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a) see section 217(e).”Pub. L. 94–455 title XIX § 1901(a)(121) · 90 Stat. 1520
Substituted · 26 U.S.C. § 1001(c)
Pub. L. 94–455 substituted provision recognizing the entire amount of gain or loss, except as otherwise provided, for provision referring to section 1002 for the determination of the extent of gain or loss to be recognized
Source evidence
Code amendment note
Subsec. (c). Pub. L. 94–455 substituted provision recognizing the entire amount of gain or loss, except as otherwise provided, for provision referring to section 1002 for the determination of the extent of gain or loss to be recognized.Enacted provision · exact public law section
(121) Amendment of section 1001.— Section 1001(c) (relating to recognition of gain or loss) is amended to read as follows: “(c) Recognition of Gain or Loss.— Except as otherwise provided in this subtitle, the entire amount of the gain or loss, determined under this section, on the sale or exchange of property shall be recognized.”Pub. L. 95–600 title VII § 702(c)(9) · 92 Stat. 2763
Repealed · 26 U.S.C. § 1001(e)(1)
Pub. L. 95–600 inserted reference to section 1023. See Repeals note below
Source evidence
Code amendment note
Subsec. (e)(1). Pub. L. 95–600 inserted reference to section 1023. See Repeals note below.Enacted provision · exact public law section
(9) Technical amendment with respect to certain term interests.— Paragraph (1) of section 1001(e) (relating to certain term interests) is amended by striking out “section 1014 or 1015” and inserting in lieu thereof “section 1014, 1015, or 1023”.Pub. L. 96–223 title IV § 401(a) · 94 Stat. 229
Repealed · 26 U.S.C. § 1001(e)(1)
Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below
Source evidence
Code amendment note
Subsec. (e)(1). Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below.Enacted provision · exact public law section
(a) In General.— Subsections (a), (d), and (e) of section 2005 of the 26 USC 306 and note, 691, 1001, 1014, 1016, 1023, 1024, 1223, 1246, 6039A, 6698A. Tax Reform Act of 1976 (relating to carryover basis), and subsection (a), paragraphs (2) through (9) of subsection (c), and paragraphs (1) and (3) of subsection (r) of section 702 of the Revenue Act of 1978, and the amendments made by those subsections or paragraphs are hereby repealed.Tax Reform Act of 1984
Pub. L. 98–369 div. A title IV § 421(b)(4) · 98 Stat. 494
Inserted · 26 U.S.C. § 1001(e)(1)
Pub. L. 98–369 inserted reference to section 1041
Source evidence
Code amendment note
Subsec. (e)(1). Pub. L. 98–369 inserted reference to section 1041.Enacted provision · exact public law section
(4) Term interests.— Paragraph (1) of section 1001(e) (relating to certain term interest) is amended by striking out “section 1014 or 1015” and inserting in lieu thereof “section 1014, 1015, or 1041”.Revenue Reconciliation Act of 1993
Pub. L. 103–66 title XIII § 13213(a)(2)(E) · 107 Stat. 312
Struck · 26 U.S.C. § 1001(f)
Pub. L. 103–66 struck out heading and text of subsec. (f). Text read as follows: “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e).”
Source evidence
Code amendment note
Subsec. (f). Pub. L. 103–66 struck out heading and text of subsec. (f). Text read as follows: “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e).”Enacted provision · exact public law section
(E) Section 1001 is amended by striking subsection (f).Effective date note
Amendment by Pub. L. 103–66 applicable to expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103–66 set out as a note under section 62 of this title.
7 of 8 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1969–1993 · 6 rounds
1993
Subsec. (f). Pub. L. 103–66 struck out heading and text of subsec. (f). Text read as follows: “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e).”
1984
Subsec. (e)(1). Pub. L. 98–369 inserted reference to section 1041.
1980
Subsec. (e)(1). Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below.
1978
Subsec. (e)(1). Pub. L. 95–600 inserted reference to section 1023. See Repeals note below.
1976
Subsec. (c). Pub. L. 94–455 substituted provision recognizing the entire amount of gain or loss, except as otherwise provided, for provision referring to section 1002 for the determination of the extent of gain or loss to be recognized.
1969
Subsec. (e). Pub. L. 91–172, § 516(a), added subsec. (e).
Subsec. (f). Pub. L. 91–172, § 231(c)(2), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Amendment by Pub. L. 103–66 applicable to expenses incurred after , see section 13213(e) of Pub. L. 103–66 set out as a note under section 62 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 applicable to transfers after , in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an Effective Date note under section 1041 of this title.
Effective Date of 1980 Amendment and Revival of Prior Law
Amendment by Pub. L. 96–223 (repealing section 702(c)(9) of Pub. L. 95–600 and the amendment made thereby, which had amended this section) applicable in respect of decedents dying after , and except for certain elections, this title to be applied and administered as if those repealed provisions had not been enacted, see section 401(b), (e) of Pub. L. 96–223, set out as a note under section 1023 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–600 effective as if included in the amendments and additions made by, and the appropriate provisions of Pub. L. 94–455, see section 702(c)(10) of Pub. L. 95–600, set out as a note under section 1014 of this title.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455 effective for taxable years beginning after , see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Effective Date of 1969 Amendment
Amendment by section 231(c)(2) of Pub. L. 91–172 applicable to taxable years beginning after , see section 231(d) of Pub. L. 91–172, set out as a note under section 217 of this title.
Pub. L. 91–172, title V, § 516(d), , 83 Stat. 648, as amended by Pub. L. 99–514, § 2, , 100 Stat. 2095, provided that:
“(1) The amendment made by subsection (a) [amending this section] shall apply to sales or other dispositions after .
“(2) The amendment made by subsection (b) [amending section 1231 of this title] shall apply to taxable years beginning after .
“(3) The amendments made by subsection (c) [enacting section 1253 and amending sections 162 and 1016 of this title] shall apply to transfers after , except that section 1253(d)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (c) shall, at the election of the taxpayer (made at such time and in such manner as the Secretary or his delegate may by regulations prescribe), apply to transfers before , but only with respect to payments made in taxable years ending after , and beginning before .”
Repeals
Pub. L. 95–600, § 702(c)(9), cited as a credit to this section, and the amendment made thereby, were repealed by Pub. L. 96–223, title IV, § 401(a), 94 Stat. 299, resulting in the text of this section reading as it read prior to enactment of section 702(c)(9). See Effective Date of 1980 Amendment and Revival of Prior Law note set out above.
Credits
1954–1993 · 7 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 295
- 1969Pub. L. 91–172, title II, § 231(c)(2), title V, § 516(a), , 83 Stat. 579, 646
- 1976Pub. L. 94–455, title XIX, § 1901(a)(121), , 90 Stat. 1784
- 1978Pub. L. 95–600, title VII, § 702(c)(9), , 92 Stat. 2928
- 1980Pub. L. 96–223, title IV, § 401(a), , 94 Stat. 299
- 1984Pub. L. 98–369, div. A, title IV, § 421(b)(4), , 98 Stat. 794
- 1993Pub. L. 103–66, title XIII, § 13213(a)(2)(E), , 107 Stat. 474.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 295; Pub. L. 91–172, title II, § 231(c)(2), title V, § 516(a), , 83 Stat. 579, 646; Pub. L. 94–455, title XIX, § 1901(a)(121), , 90 Stat. 1784; Pub. L. 95–600, title VII, § 702(c)(9), , 92 Stat. 2928; Pub. L. 96–223, title IV, § 401(a), , 94 Stat. 299; Pub. L. 98–369, div. A, title IV, § 421(b)(4), , 98 Stat. 794; Pub. L. 103–66, title XIII, § 13213(a)(2)(E), , 107 Stat. 474.)