§1011 Adjusted basis for determining gain or loss

Summary

When you sell or otherwise get rid of property, you use the property's adjusted basis to figure your gain or loss. That adjusted basis is the original basis set under section 1012 or other applicable parts of this chapter and subchapters C, K, and P, changed as required by section 1016. If a charitable deduction under section 170 applies because of a sale, the part of the adjusted basis you use to figure the gain is the fraction of your adjusted basis equal to the amount realized (the money you got) divided by the property's fair market value.