Browse Arkansas Code titles and sections
26 U.S.C. § 1040 — Transfer of certain farm, etc., real property
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A).
**(b) Similar rule for certain trusts** To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A.
**(c) Basis of property acquired in transfer described in subsection (a) or (b)** The basis of property acquired in a transfer with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1040
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: cc6905c9e20e281e1bd98a515c7c6b7683436e5da282af229e55c60680fe7238. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_7a39d741f86acabaca70e3b3
Source file: Laws/federal/codes/united-states-code/title-26/section-1040-transfer-of-certain-farm-etc-real-property--a9418e2dd4.md
Pages: Not recorded – Not recorded
Passage SHA-256: d22a60f35a5fc37d999de200cb85da1d23432733f17d0370824b8ff87a8eda87
Source location: Title 26, Chapter 1, § 1040; chapter-001-normal-taxes-and-surtaxes.md
Stored source content
**(a) General rule** If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A).
**(b) Similar rule for certain trusts** To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A.
**(c) Basis of property acquired in transfer described in subsection (a) or (b)** The basis of property acquired in a transfer with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Exclusion** Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.
**(b) Limitations**
(1) **In general** — The amount of gain excluded from gross income under subsection (a) with respect to any sale or exchange shall not exceed $250,000.
(2) **Special rules for joint returns** — In the case of a husband and wife who make a joint return for the taxable year of the sale or exchange of the property—
(A) *$500,000 Limitation for certain joint returns* — Paragraph (1) shall be applied by substituting “$500,000” for “$250,000” if—
(i) either spouse meets the ownership requirements of subsection (a) with respect to such property;
(ii) both spouses meet the use requirements of subsection (a) with respect to such property; and
(iii) neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3).
(B) *Other joint returns* — If such spouses do not meet the requirements of subparagraph (A), the limitation under paragraph (1) shall be the sum of the limitations under paragraph (1) to which each spouse would be entitled if such spouses had not been married. For purposes of the preceding sentence, each spouse shall be treated as owning the property during the period that either spouse owned the property.
(3) **Application to only 1 sale or exchange every 2 years** — Subsection (a) shall not apply to any sale or exchange by the taxpayer if, during the 2-year period ending on the date of such sale or exchange, there was any other sale or exchange by the taxpayer to which subsec
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 121
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Gifts after December 31, 1920** If the property was acquired by gift after December 31, 1920, the basis shall be the same as it would be in the hands of the donor or the last preceding owner by whom it was not acquired by gift, except that if such basis (adjusted for the period before the date of the gift as provided in section 1016) is greater than the fair market value of the property at the time of the gift, then for the purpose of determining loss the basis shall be such fair market value. If the facts necessary to determine the basis in the hands of the donor or the last preceding owner are unknown to the donee, the Secretary shall, if possible, obtain such facts from such donor or last preceding owner, or any other person cognizant thereof. If the Secretary finds it impossible to obtain such facts, the basis in the hands of such donor or last preceding owner shall be the fair market value of such property as found by the Secretary as of the date or approximate date at which, according to the best information that the Secretary is able to obtain, such property was acquired by such donor or last preceding owner.
**(b) Transfer in trust after December 31, 1920** If the property was acquired after December 31, 1920, by a transfer in trust (other than by a transfer in trust by a gift, bequest, or devise), the basis shall be the same as it would be in the hands of the grantor increased in the amount of gain or decreased in the amount of loss recognized to the grantor on such transfer under the law applicable to the year in which the transfer was made.
**(c) Gift or transfer in trust before January 1, 1921** If the property was acquired by gift or transfer in trust on or before December 31, 1920, the basis shall be the fair market value of such property at the ti
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1015
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Married individuals filing joint returns and surviving spouses** There is hereby imposed on the taxable income of—
(1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $36,90015% of taxable income. Over $36,900 but not over $89,150$5,535, plus 28% of the excess over $36,900. Over $89,150 but not over $140,000$20,165, plus 31% of the excess over $89,150. Over $140,000 but not over $250,000$35,928.50, plus 36% of the excess over $140,000. Over $250,000$75,528.50, plus 39.6% of the excess over $250,000.
**(b) Heads of households** There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% of taxable income. Over $29,600 but not over $76,400$4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500$17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000$33,385, plus 36% of the excess over $127,500. Over $250,000$77,485, plus 39.6% of the excess over $250,000.
**(c) Unmarried individuals (other than surviving spouses and heads of households)** There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% of taxable income. Over $22,100 but not over $53,50
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
(1) For certain distributions by a corporation which are applied in reduction of basis of stock, see section 301(c)(2).
(2) For basis in case of construction of new vessels, see chapter 533 of title 46, United States Code.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1023
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Value based on use under which property qualifies**
(1) **General rule** — If—
(A) the decedent was (at the time of his death) a citizen or resident of the United States, and
(B) the executor elects the application of this section and files the agreement referred to in subsection (d)(2),
then, for purposes of this chapter, the value of qualified real property shall be its value for the use under which it qualifies, under subsection (b), as qualified real property.
(2) **Limitation on aggregate reduction in fair market value** — The aggregate decrease in the value of qualified real property taken into account for purposes of this chapter which results from the application of paragraph (1) with respect to any decedent shall not exceed $750,000.
(3) **Inflation adjustment** — In the case of estates of decedents dying in a calendar year after 1998, the $750,000 amount contained in paragraph (2) shall be increased by an amount equal to—
(A) $750,000, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 1997” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.
**(b) Qualified real property**
(1) **In general** — For purposes of this section, the term “qualified real property” means real property located in the United States which was acquired from or passed from the decedent to a qualified heir of the decedent and which, on the date of the decedent’s death, was being used for a qualified use by the decedent or a member of the decedent’s family, but only if—
(A) 50 percent or more of the adjusted value of the
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 2032A
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 2284
TITLE 26—INTERNAL REVENUE CODE
[§ 1039
EFFECTIVE DATE OF 1980 AMENDMENT
Pub. L. 96–471, § 6(c), Oct. 19, 1980, 94 Stat. 2256, pro-
vided: ‘‘The amendment made by section 4 [amending
this section] shall apply to acquisitions of real property
by the taxpayer after the date of the enactment of this
Act [Oct. 19, 1980].’’
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 404(c)(6) of Pub. L. 95–600 ap-
plicable to sales or exchanges after July 26, 1978, in tax-
able years ending after such date, see section 404(d)(1)
of Pub. L. 95–600, set out as a note under section 121 of
this title.
Pub. L. 95–600, title IV, § 405(d), Nov. 6, 1978, 92 Stat.
2871, provided that: ‘‘The amendments made by this
section [amending this section and sections 1034, 1250,
6212, and 6504 of this title] shall apply to sales and ex-
changes of residences after July 26, 1978, in taxable
years ending after such date.’’
EFFECTIVE DATE; ELECTION TO APPLY TO TAXABLE
YEARS BEGINNING AFTER DEC. 31, 1957
Pub. L. 88–570, § 2(c), Sept. 2, 1964, 78 Stat. 856, pro-
vided that:
‘‘(1) The amendments made by this section [enacting
this section] shall apply to taxable years beginning
after the date of the enactment of this Act [Sept. 2,
1964].
‘‘(2) If the taxpayer makes an election under this
paragraph, the amendments made by this section [en-
acting this section] shall also apply to taxable years
beginning after December 31, 1957, except that such
amendments shall not apply with respect to any reac-
quisition of real property in a taxable year for which
the assessment of a deficiency, or the credit or refund
of an overpayment, is prevented on the date of the en-
actment of this Act [Sept. 2, 1964] by the operation of
any law or rule of law. An election under this para-
graph s
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1040
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.