Title 26, Internal Revenue CodeRelease 119-102

§1053 Property Acquired Before March 1, 1913

Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter O — Gain or Loss on Disposition of Property › PART IV — SPECIAL RULES › § 1053

Last updated Aug 21, 2026|Official source

Summary

If someone owned property before March 1, 1913, and the usual tax cost (after making the pre‑1913 adjustments required by section 1016) is smaller than the property's fair market value on March 1, 1913, then use that March 1, 1913 fair market value to figure any gain. When valuing stock on that date, you must take into account how much the corporation’s assets were worth on March 1, 1913.

Full Legal Text

Title 26, §1053

Internal Revenue Code, Source: USLM XML via OLRC

In the case of property acquired before March 1, 1913, if the basis otherwise determined under this subtitle, adjusted (for the period before March 1, 1913) as provided in section 1016, is less than the fair market value of the property as of March 1, 1913, then the basis for determining gain shall be such fair market value. In determining the fair market value of stock in a corporation as of March 1, 1913, due regard shall be given to the fair market value of the assets of the corporation as of that date.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1958—Pub. L. 85–866 substituted “subtitle” for “part”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1053

Title 26, Internal Revenue Code

Last Updated

Aug 21, 2026

Release point: 119-102