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26 U.S.C. § 1012 — Basis of property—cost
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The basis of property shall be the cost of such property, except as otherwise provided in this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses).
**(b) Special rule for apportioned real estate taxes** The cost of real property shall not include any amount in respect of real property taxes which are treated under section 164(d) as imposed on the taxpayer.
**(c) Determinations by account**
(1) **In general** — In the case of the sale, exchange, or other disposition of a specified security on or after the applicable date, the conventions prescribed by regulations under this section shall be applied on an account by account basis.
(2) **Application to certain regulated investment companies**
(A) *In general* — Except as provided in subparagraph (B), any stock for which an average basis method is permissible under this section which is acquired before January 1, 2012, shall be treated as a separate account from any such stock acquired on or after such date.
(B) *Election for treatment as single account* — If a regulated investment company described in subparagraph (A) elects to have this subparagraph apply with respect to one or more of its stockholders—
(i) subparagraph (A) shall not apply with respect to any stock in such regulated investment company held by such stockholders, and
(ii) all stock in such regulated investment company which is held by such stockholders shall be treated as covered securities described in section 6045(g)(3) without regard to the date of the acquisition of such stock.
A rule similar to the rule of the preceding sentence shall apply with respect to a broker holding such stock as a nom
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Source location: Title 26, Chapter 1, § 1012; chapter-001-normal-taxes-and-surtaxes.md
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**(a) In general** The basis of property shall be the cost of such property, except as otherwise provided in this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses).
**(b) Special rule for apportioned real estate taxes** The cost of real property shall not include any amount in respect of real property taxes which are treated under section 164(d) as imposed on the taxpayer.
**(c) Determinations by account**
(1) **In general** — In the case of the sale, exchange, or other disposition of a specified security on or after the applicable date, the conventions prescribed by regulations under this section shall be applied on an account by account basis.
(2) **Application to certain regulated investment companies**
(A) *In general* — Except as provided in subparagraph (B), any stock for which an average basis method is permissible under this section which is acquired before January 1, 2012, shall be treated as a separate account from any such stock acquired on or after such date.
(B) *Election for treatment as single account* — If a regulated investment company described in subparagraph (A) elects to have this subparagraph apply with respect to one or more of its stockholders—
(i) subparagraph (A) shall not apply with respect to any stock in such regulated investment company held by such stockholders, and
(ii) all stock in such regulated investment company which is held by such stockholders shall be treated as covered securities described in section 6045(g)(3) without regard to the date of the acquisition of such stock.
A rule similar to the rule of the preceding sentence shall apply with respect to a broker holding such stock as a nominee.
(3) **Definitions** — For purposes of this section, the terms “specified security” and “applicable date” shall have the meaning given such terms in section 6045(g).
**(d) Average basis for stock acquired pursuant to a dividend reinvestment plan**
(1) **In general** — In the case of any stock acquired after December 31, 2011, in connection with a dividend reinvestment plan, the basis of such stock while held as part of such plan shall be determined using one of the methods which may be used for determining the basis of stock in a regulated investment company.
(2) **Treatment after transfer** — In the case of the transfer to another account of stock to which paragraph (1) applies, such stock shall have a cost basis in such other account equal to its basis in the dividend reinvestment plan immediately before such transfer (properly adjusted for any fees or other charges taken into account in connection with such transfer).
(3) **Separate accounts; election for treatment as single account**
(A) *In general* — Rules similar to the rules of subsection (c)(2) shall apply for purposes of this subsection.
(B) *Average basis method* — Notwithstanding paragraph (1), in the case of an election under rules similar to the rules of subsection (c)(2)(B) with respect to stock held in connection with a dividend reinvestment plan, the average basis method is permissible with respect to all such stock without regard to the date of the acquisition of such stock.
(4) **Dividend reinvestment plan** — For purposes of this subsection—
(A) *In general* — The term “dividend reinvestment plan” means any arrangement under which dividends on any stock are reinvested in stock identical to the stock with respect to which the dividends are paid.
(B) *Initial stock acquisition treated as acquired in connection with plan* — Stock shall be treated as acquired in connection with a dividend reinvestment plan if such stock is acquired pursuant to such plan or if the dividends paid on such stock are subject to such plan.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** Every person doing business as a broker shall, when required by the Secretary, make a return, in accordance with such regulations as the Secretary may prescribe, showing the name and address of each customer, with such details regarding gross proceeds and such other information as the Secretary may by forms or regulations require with respect to such business.
**(b) Statements to be furnished to customers** Every person required to make a return under subsection (a) shall furnish to each customer whose name is required to be set forth in such return a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return, and
(2) the information required to be shown on such return with respect to such customer.
The written statement required under the preceding sentence shall be furnished to the customer on or before February 15 of the year following the calendar year for which the return under subsection (a) was required to be made. In the case of a consolidated reporting statement (as defined in regulations) with respect to any customer, any statement which would otherwise be required to be furnished on or before January 31 of a calendar year with respect to any item reportable to the taxpayer shall instead be required to be furnished on or before February 15 of such calendar year if furnished with such consolidated reporting statement.
**(c) Definitions** For purposes of this section—
(1) **Broker** — The term “broker” includes—
(A) a dealer,
(B) a barter exchange,
(C) any person who (for consideration) regularly acts as a middleman with respect to property or services, and
(D) any person who (for consideration) is responsible for regularly providing any service ef
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** For purposes of section 38, the renewable electricity production credit for any taxable year is an amount equal to the product of—
(1) 0.3 cents, multiplied by
(2) the kilowatt hours of electricity—
(A) produced by the taxpayer—
(i) from qualified energy resources, and
(ii) at a qualified facility during the 10-year period beginning on the date the facility was originally placed in service, and
(B) sold by the taxpayer to an unrelated person during the taxable year.
**(b) Limitations and adjustments**
(1) **Phaseout of credit** — The amount of the credit determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of the credit (determined without regard to this paragraph) as—
(A) the amount by which the reference price for the calendar year in which the sale occurs exceeds 8 cents, bears to
(B) 3 cents.
(2) **Credit and phaseout adjustment based on inflation** — The 0.3 cent amount in subsection (a), the 8 cent amount in paragraph (1), the $4.375 amount in subsection (e)(8)(A), the $2 amount in subsection (e)(8)(D)(ii)(I), and in subsection (e)(8)(B)(i) the reference price of fuel used as a feedstock (within the meaning of subsection (c)(7)(A)) in 2002 shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale occurs. If the 0.3 cent amount as increased under the preceding sentence is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. In any other case, if an amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.
(3) **Credit reduced for tax-exempt bonds** — The amount of the credit determ
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 45
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Furnishing of information** Every applicable person which transfers to a broker (as defined in section 6045(c)(1)) a covered security (as defined in section 6045(g)(3)) in the hands of such applicable person shall furnish to such broker a written statement in such manner and setting forth such information as the Secretary may by regulations prescribe for purposes of enabling such broker to meet the requirements of section 6045(g).
**(b) Applicable person** For purposes of subsection (a), the term “applicable person” means—
(1) any broker (as defined in section 6045(c)(1)), and
(2) any other person as provided by the Secretary in regulations.
**(c) Time for furnishing statement** Except as otherwise provided by the Secretary, any statement required by subsection (a) shall be furnished not later than 15 days after the date of the transfer described in such subsection.
**(d) Return requirement for certain transfers of digital assets not otherwise subject to reporting** Any broker, with respect to any transfer (which is not part of a sale or exchange executed by such broker) during a calendar year of a covered security which is a digital asset from an account maintained by such broker to an account which is not maintained by, or an address not associated with, a person that such broker knows or has reason to know is also a broker, shall make a return for such calendar year, in such form as determined by the Secretary, showing the information otherwise required to be furnished with respect to transfers subject to subsection (a).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** According to the forms or regulations prescribed by the Secretary, any issuer of a specified security shall make a return setting forth—
(1) a description of any organizational action which affects the basis of such specified security of such issuer,
(2) the quantitative effect on the basis of such specified security resulting from such action, and
(3) such other information as the Secretary may prescribe.
**(b) Time for filing return** Any return required by subsection (a) shall be filed not later than the earlier of—
(1) 45 days after the date of the action described in subsection (a), or
(2) January 15 of the year following the calendar year during which such action occurred.
**(c) Statements to be furnished to holders of specified securities or their nominees** According to the forms or regulations prescribed by the Secretary, every person required to make a return under subsection (a) with respect to a specified security shall furnish to the nominee with respect to the specified security (or certificate holder if there is no nominee) a written statement showing—
(1) the name, address, and phone number of the information contact of the person required to make such return,
(2) the information required to be shown on such return with respect to such security, and
(3) such other information as the Secretary may prescribe.
The written statement required under the preceding sentence shall be furnished to the holder on or before January 15 of the year following the calendar year during which the action described in subsection (a) occurred.
**(d) Specified security** For purposes of this section, the term “specified security” has the meaning given such term by section 6045(g)(3)(B). No return shall be required under this section with respect t
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Reasonable cause waiver** No penalty shall be imposed under this part with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
**(b) Payment of penalty** Any penalty imposed by this part shall be paid on notice and demand by the Secretary and in the same manner as tax.
**(c) Special rule for failure to meet magnetic media requirements** No penalty shall be imposed under section 6721 solely by reason of any failure to comply with the requirements of the regulations prescribed under section 6011(e)(2), except to the extent that such a failure occurs with respect to more than the applicable number (determined under section 6011(e)(5) with respect to the calendar year to which such returns relate) of information returns or with respect to a return described in section 6011(e)(4).
**(d) Definitions** For purposes of this part—
(1) **Information return** — The term “information return” means—
(A) any statement of the amount of payments to another person required by—
(i) section 6041(a) or (b) (relating to certain information at source),
(ii) section 6042(a)(1) (relating to payments of dividends),
(iii) section 6044(a)(1) (relating to payments of patronage dividends),
(iv) section 6049(a) (relating to payments of interest),
(v) section 6050A(a) (relating to reporting requirements of certain fishing boat operators),
(vi) section 6050N(a) (relating to payments of royalties),
(vii) section 6051(d) (relating to information returns with respect to income tax withheld),
(viii) section 6050R (relating to returns relating to certain purchases of fish), or
(ix) section 110(d) (relating to qualified lessee construction allowances for short-term leases),
(B) any return
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Federal law — U.S. Code and appendices · legal_authorities
Page 2251
TITLE 26—INTERNAL REVENUE CODE
§ 1012
retary or his delegate may by regulations prescribe),
apply to transfers before January 1, 1970, but only with
respect to payments made in taxable years ending after
December 31, 1969, and beginning before January 1,
1980.’’
REPEALS
Pub. L. 95–600, § 702(c)(9), cited as a credit to this sec-
tion, 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 en-
actment of section 702(c)(9). See Effective Date of 1980
Amendment and Revival of Prior Law note set out
above.
[§ 1002. Repealed. Pub. L. 94–455, title XIX,
§ 1901(b)(28)(B)(i), Oct. 4, 1976, 90 Stat. 1799]
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 295, re-
lated to the recognition of the entire amount of gain or
loss determined under section 1001 on the sale or ex-
change of property.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Repeal effective for taxable years beginning after
Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set
out as an Effective Date of 1976 Amendment note under
section 2 of this title.
PART II—BASIS RULES OF GENERAL
APPLICATION
Sec.
1011.
Adjusted basis for determining gain or loss.
1012.
Basis of property—cost.
1013.
Basis of property included in inventory.
1014.
Basis of property acquired from a decedent.
1015.
Basis of property acquired by gifts and trans-
fers in trust.
1016.
Adjustments to basis.
1017.
Discharge of indebtedness.
[1018.
Repealed.]
1019.
Property on which lessee has made improve-
ments.
[1020.
Repealed.]
1021.
Sale of annuities.
[1022.
Repealed.]
1023.
Cross references.
[1024.
Renumbered.]
Editorial Notes
AMENDMENTS
2010—Pub. L. 111–312, ti
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1012
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