Title 26 — Internal Revenue CodeRelease 119-73

§1011 Adjusted Basis for Determining Gain or Loss

Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter O— Gain or Loss on Disposition of Property › Part II— BASIS RULES OF GENERAL APPLICATION › § 1011

Last updated Apr 6, 2026|Official source

Summary

Your gain or loss when you sell or dispose of property is measured from its adjusted basis — the property's basis under the normal rules, adjusted as the tax code requires. If you make a bargain sale to charity that earns a charitable deduction, only part of the basis counts in figuring your gain: the portion that matches the ratio of the amount you received to the property's fair market value.

Full Legal Text

Title 26, §1011

Internal Revenue Code — Source: USLM XML via OLRC

(a)The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under section 1012 or other applicable sections of 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)), adjusted as provided in section 1016.

(b)If a deduction is allowable under section 170 (relating to charitable contributions) by reason of a sale, then the adjusted basis for determining the gain from such sale shall be that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1969—Pub. L. 91–172 redesignated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 1969 AmendmentAmendment by Pub. L. 91–172 applicable with respect to sales made after Dec. 19, 1969, see section 201(g)(6) of Pub. L. 91–172, set out as a note under section 170 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1011

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73