Title 26, Internal Revenue CodeRelease 119-102
§1021 Sale of Annuities
Title 26 › 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 › § 1021
Summary
When you sell an annuity contract, the adjusted basis used to figure your gain or loss can't be negative; its lowest value is zero.
Full Legal Text
Title 26, §1021
Internal Revenue Code, Source: USLM XML via OLRC
In case of the sale of an annuity contract, the adjusted basis shall in no case be less than zero.
Reference
Citations & Metadata
Citation
26 U.S.C. § 1021
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102