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26 U.S.C. § 1253 — Transfers of franchises, trademarks, and trade names
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** A transfer of a franchise, trademark, or trade name shall not be treated as a sale or exchange of a capital asset if the transferor retains any significant power, right, or continuing interest with respect to the subject matter of the franchise, trademark, or trade name.
**(b) Definitions** For purposes of this section—
(1) **Franchise** — The term “franchise” includes an agreement which gives one of the parties to the agreement the right to distribute, sell, or provide goods, services, or facilities, within a specified area.
(2) **Significant power, right, or continuing interest** — The term “significant power, right, or continuing interest” includes, but is not limited to, the following rights with respect to the interest transferred:
(A) A right to disapprove any assignment of such interest, or any part thereof.
(B) A right to terminate at will.
(C) A right to prescribe the standards of quality of products used or sold, or of services furnished, and of the equipment and facilities used to promote such products or services.
(D) A right to require that the transferee sell or advertise only products or services of the transferor.
(E) A right to require that the transferee purchase substantially all of his supplies and equipment from the transferor.
(F) A right to payments contingent on the productivity, use, or disposition of the subject matter of the interest transferred, if such payments constitute a substantial element under the transfer agreement.
(3) **Transfer** — The term “transfer” includes the renewal of a franchise, trademark, or trade name.
**(c) Treatment of contingent payments by transferor** Amounts received or accrued on account of a transfer, sale, or other disposition of a franchise, trademark, or trade name w
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Stable record: federal_law:legal_authorities:record_usc_638d3d4592d866e0099c2973
Source file: Laws/federal/codes/united-states-code/title-26/section-1253-transfers-of-franchises-trademarks-and-trade-names--31b50c6c74.md
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Source location: Title 26, Chapter 1, § 1253; chapter-001-normal-taxes-and-surtaxes.md
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**(a) General rule** A transfer of a franchise, trademark, or trade name shall not be treated as a sale or exchange of a capital asset if the transferor retains any significant power, right, or continuing interest with respect to the subject matter of the franchise, trademark, or trade name.
**(b) Definitions** For purposes of this section—
(1) **Franchise** — The term “franchise” includes an agreement which gives one of the parties to the agreement the right to distribute, sell, or provide goods, services, or facilities, within a specified area.
(2) **Significant power, right, or continuing interest** — The term “significant power, right, or continuing interest” includes, but is not limited to, the following rights with respect to the interest transferred:
(A) A right to disapprove any assignment of such interest, or any part thereof.
(B) A right to terminate at will.
(C) A right to prescribe the standards of quality of products used or sold, or of services furnished, and of the equipment and facilities used to promote such products or services.
(D) A right to require that the transferee sell or advertise only products or services of the transferor.
(E) A right to require that the transferee purchase substantially all of his supplies and equipment from the transferor.
(F) A right to payments contingent on the productivity, use, or disposition of the subject matter of the interest transferred, if such payments constitute a substantial element under the transfer agreement.
(3) **Transfer** — The term “transfer” includes the renewal of a franchise, trademark, or trade name.
**(c) Treatment of contingent payments by transferor** Amounts received or accrued on account of a transfer, sale, or other disposition of a franchise, trademark, or trade name which are contingent on the productivity, use, or disposition of the franchise, trademark, or trade name transferred shall be treated as amounts received or accrued from the sale or other disposition of property which is not a capital asset.
**(d) Treatment of payments by transferee**
(1) **Contingent serial payments**
(A) *In general* — Any amount described in subparagraph (B) which is paid or incurred during the taxable year on account of a transfer, sale, or other disposition of a franchise, trademark, or trade name shall be allowed as a deduction under section 162(a) (relating to trade or business expenses).
(B) *Amounts to which paragraph applies* — An amount is described in this subparagraph if it—
(i) is contingent on the productivity, use, or disposition of the franchise, trademark, or trade name, and
(ii) is paid as part of a series of payments—
(I) which are payable not less frequently than annually throughout the entire term of the transfer agreement, and
(II) which are substantially equal in amount (or payable under a fixed formula).
(2) **Other payments** — Any amount paid or incurred on account of a transfer, sale, or other disposition of a franchise, trademark, or trade name to which paragraph (1) does not apply shall be treated as an amount chargeable to capital account.
(3) **Renewals, etc.** — For purposes of determining the term of a transfer agreement under this section, there shall be taken into account all renewal options (and any other period for which the parties reasonably expect the agreement to be renewed).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible. The amount of such deduction shall be determined by amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 15-year period beginning with the month in which such intangible was acquired.
**(b) No other depreciation or amortization deduction allowable** Except as provided in subsection (a), no depreciation or amortization deduction shall be allowable with respect to any amortizable section 197 intangible.
**(c) Amortizable section 197 intangible** For purposes of this section—
(1) **In general** — Except as otherwise provided in this section, the term “amortizable section 197 intangible” means any section 197 intangible—
(A) which is acquired by the taxpayer after the date of the enactment of this section, and
(B) which is held in connection with the conduct of a trade or business or an activity described in section 212.
(2) **Exclusion of self-created intangibles, etc.** — The term “amortizable section 197 intangible” shall not include any section 197 intangible—
(A) which is not described in subparagraph (D), (E), or (F) of subsection (d)(1), and
(B) which is created by the taxpayer.
This paragraph shall not apply if the intangible is created in connection with a transaction (or series of related transactions) involving the acquisition of assets constituting a trade or business or substantial portion thereof.
(3) **Anti-churning rules** — For exclusion of intangibles acquired in certain transactions, see subsection (f)(9).
**(d) Section 197 intangible** For purposes of this section—
(1) **In general** — Except as otherwise provided in this section, the term “section 197 i
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 197
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** There shall be allowed as a depreciation deduction a reasonable allowance for the exhaustion, wear and tear (including a reasonable allowance for obsolescence)—
(1) of property used in the trade or business, or
(2) of property held for the production of income.
**(b) Cross reference** For determination of depreciation deduction in case of property to which section 168 applies, see section 168.
**(c) Basis for depreciation**
(1) **In general** — The basis on which exhaustion, wear and tear, and obsolescence are to be allowed in respect of any property shall be the adjusted basis provided in section 1011, for the purpose of determining the gain on the sale or other disposition of such property.
(2) **Special rule for property subject to lease** — If any property is acquired subject to a lease—
(A) no portion of the adjusted basis shall be allocated to the leasehold interest, and
(B) the entire adjusted basis shall be taken into account in determining the depreciation deduction (if any) with respect to the property subject to the lease.
**(d) Life tenants and beneficiaries of trusts and estates** In the case of property held by one person for life with remainder to another person, the deduction shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant. In the case of property held in trust, the allowable deduction shall be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the instrument creating the trust, or, in the absence of such provisions, on the basis of the trust income allocable to each. In the case of an estate, the allowable deduction shall be apportioned between the estate and the heirs, legatees, and devisees
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 167
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** For purposes of section 38, the amount of the low-income housing credit determined under this section for any taxable year in the credit period shall be an amount equal to—
(1) the applicable percentage of
(2) the qualified basis of each qualified low-income building.
**(b) Applicable percentage: 70 percent present value credit for certain new buildings; 30 percent present value credit for certain other buildings**
(1) **Determination of applicable percentage** — For purposes of this section—
(A) *In general* — The term “applicable percentage” means, with respect to any building, the appropriate percentage prescribed by the Secretary for the earlier of—
(i) the month in which such building is placed in service, or
(ii) at the election of the taxpayer—
(I) the month in which the taxpayer and the housing credit agency enter into an agreement with respect to such building (which is binding on such agency, the taxpayer, and all successors in interest) as to the housing credit dollar amount to be allocated to such building, or
(II) in the case of any building to which subsection (h)(4)(B) applies, the month in which the tax-exempt obligations are issued.
A month may be elected under clause (ii) only if the election is made not later than the 5th day after the close of such month. Such an election, once made, shall be irrevocable.
(B) *Method of prescribing percentages* — The percentages prescribed by the Secretary for any month shall be percentages which will yield over a 10-year period amounts of credit under subsection (a) which have a present value equal to—
(i) 70 percent of the qualified basis of a new building which is not federally subsidized for the taxable year, and
(ii) 30 percent of the qualified b
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 42
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Federal law — U.S. Code and appendices · legal_authorities
**(a) 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.
**(b) 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—
(1) 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
(2) 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.
**(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.
**(d) 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.
**(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 section 1014, 1015, or 1041 (to the extent that such adjusted basis is a portion of the entire adjusted basis
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1001
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Federal law — U.S. Code and appendices · legal_authorities
Page 2365
TITLE 26—INTERNAL REVENUE CODE
§ 1253
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Repeal applicable to taxable years beginning after
Dec. 31, 1983, see section 492(d) of Pub. L. 98–369, set out
as an Effective Date of 1984 Amendment note under sec-
tion 170 of this title.
§ 1252. Gain from disposition of farm land
(a) General rule
(1) Ordinary income
Except as otherwise provided in this section,
if farm land which the taxpayer has held for
less than 10 years is disposed of, the lower of—
(A) the applicable percentage of the aggre-
gate of the deductions allowed under section
175 (relating to soil and water conservation
expenditures) for expenditures made by the
taxpayer with respect to the farm land or
(B) the excess of—
(i) the amount realized (in the case of a
sale, exchange, or involuntary conversion),
or the fair market value of the farm land
(in the case of any other disposition), over
(ii) the adjusted basis of such land,
shall be treated as ordinary income. Such
gain shall be recognized notwithstanding
any other provision of this subtitle.
(2) Farm land
For purposes of this section, the term ‘‘farm
land’’ means any land with respect to which
deductions have been allowed under section
175 (relating to soil and water conservation ex-
penditures).
(3) Applicable percentage
For purposes of this section—
If the farm land is disposed of—
The applicable
percentage is—
Within 5 years after the date it was
acquired .......................................
100 percent.
Within the sixth year after it was
acquired .......................................
80 percent.
Within the seventh year after it
was acquired ................................
60 percent.
Within the eighth year after it was
acquired ............
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1253
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