S11 _ f. TITLE :e.··-11vr. ‘ercln@’¤! eithecorporatlmtowhich the assets {erred; m` (O) S i¢¤i¤t¤®. W ‘a¤ere @8%G in lcecritr, fcrm, cr pim ct orgaalzstwn, hwever emetul. . » (2) Thttu'm “a party to a ¤wr¤¤l$atien" lacladw a corpcreticn 1&SE*i{;i§`¤Q¤ a and lncludw ‘ both cerpcratlens in the case ot an acquisition by one corporation Qfnt lad a micrlty ot: tmwoting acct and at least { lecjcrlty ei the total nnmbar of shares of all other claw ot here ot @@1* execution; ._ _ '_ V ‘* {sy Ae mw lathis section the term "coatrol" memes »e·e·cerehlp`et at least &-per eenmm of the votlngbstock and er least &`per emmm of the tctal number of ehares `ot all ether clameswat atcéh of the corporation. (Jane $$1924, $.01 ‘p_ e¤,,-e. wit, Q 2m,_43 Stat. 266.) , Q ‘ ‘ ·935. $1: of Lnhhg gain srbmand so forth.--(a) Tlae basis for determining the gain or lem {rom the sale; or ether dmmdtion at 6aaé`q&red after @» N13, shall be the cost of seth ~p@rty;b.except that-- Q b _ . (1) It ibé @&t¥ aheald have haw last mventcry, the Rah @11 be the hventory rallied thereet; (2) Hike W'¤9¤¤y was aequirwp by gift after Decemba 19%, the Bidi shall be we use an ltltcald be in of the dencr cr the last‘ di¤g owner by whom lt was not acquired by it k facts neewary to determine such basis are tc Qc dome, nolflateraal he-bade ¤m11,‘irapemlbe,~<e¢bw¤ me ned from wen donor cr lest leg or aay_e&er person @8aat thereof. It the cemmémoner §¤&_- lt te obtain such facts, me basis ehall be the fair market value of such property as {band by the as of the date or approximate date pt which, aecerdlng to latcrmaden that the com-`
is able to obtain, such ‘ l¤’<>l>¢¤'t¥. was acquired by
snch_do¤cr_‘orlaatpreeedlngowner;‘ ’p " ·_ W, _; (3) It we pfeberty was acquired after·Deeember··81;_1®0;· by a trander in (·other· than by a tranetu lu trust- by bl»quest or devise) the basis ghall he the same as it wonld be · in the handa_M grantor, laereasediln the amount ¥of gala or — decrmsad in the amount of lose tc the grantor upon been trtauer the law applicable to the yur ln which the transfer waé made. Ee provlalone of this paragraph shall not amalyl to the aeqniétlou of such property intereéts as are
in anbdivleien (c) or (e) of eectien 402 bfthe Revenue
Act qt 1921 or gabdlvislcn (c), (cl), for (Q) of section 1094 of thin title; p _- ‘_ 4 ·_ _ . · (4;) It theproperty was acgalred by glttcr transfer in trust on cr betere Deeember 81, 1920, the basis .--shall be ltalr merketvalee of such property at the time oft-each acquisition; 45) If " the }property_ was acquired by bequest; edevlee, or inheritance, the basis shall bejthe talrl market value ot such property at the time ot Qanchnacqulsltion. The provlsionQe of this paragraph shall apply to fh€,¤¤*lu1¤ltlou of such property interests as are spéclded in subdivision (c) or (e). otlsection 402 of the Revenue Act c£'1921,_‘or ln subdivision (c)`, (d), or (lf) of sectlcn IM4 of this title: - ‘ ` (6) It the property- was acquired upon an exchange de- —= Seribed iI\·8I!bd1Vi8$0D —(b), (ed), (e), or lf) of section 934, ’ the basis shall be the same as ln the mae lot the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount `et gain or decreased in the amount of lem tc the taxpayu that was recoghxzea upon such exchange under the law applicable. to the year in which the erchangewvas made; It the property ac acquired consisted in wr of the tmc of www pemitted by mrasraph (1). (2).. (3}, Gr (4) of subdivision (b) of section to be received withent the recxnitlcn of gun or low and ln part ot other llfoperty, the basis provided in this paragaph shall be allocated between the prepertlm (other than money) received, and for the et the allocation there shell be assigned to such
manu. asvs1v·us ‘§ 935 other property an amount equivalent to its fair market value at the date of the exchange. This paragraph shall not apply to propvstyl acquired by aeotporation by the issuance ··of its stock or securities as thedconsideration in whole or in part for the trandere of the property to it; , ( _ (7) It the property (other than stock or swurlties in a ( corporation a party to the reorganization) was acquired after December 31, 1917, bylla corporation ln connection with a reorganization, and immediately after the transfer an interest or control in such property of 89 per eentnm or more remainm in the wme persons or any of them} then the Mets shall M the same as`it wenlcfhe in the hands ot tm trnnsteror, inermed in the amount ot gain os decreasw in Ee amnnt ot low recognized to the xtransierora npon such under the law _ applicable to the year in whickrthe transfer sms made; · (8) ”If·_.thejpr0perty (other than Rock or in a eerporation a. party to a was acquired after De- 1 lcember 31; 1920, by a corporation by the of its stock erfsecunues ineonnéetion gvith a dmeribed in paragraph (4) of snbdlvlsion (b) of @4 (including, nba, uses where mrt of- the eonsgdgntton for the transter ot meh A property to the corporation {vas lprwerty or 'money in addition- »t0'_su?:h stock or &ri¤€8); then the basis shall he the same as _it would bein the hands of the tranderer, i¤cr in the ·.am0u¤fet gain- orldecredsecl in the amount to the transistor upon such transfer nam the law spyleable to thefyear in whiehthe tranxer was made; ‘ » ‘ -` , (9) It the property oisteck or secnritis didributedafter December _31, 1923, to} ilihiier in connection with as transaction described in subdivision (`c)_ of mction @4, the ' basis in the case of the stockln oiiwhieh thedhstribntiou was made shall be apportioned,) under rules and prescribed by the Commissioner `ofj Internal Revenue with the approval of the Secretary of the between such stoek
the stock` or, securities distributed;
(10) If the property was acquired as the result of a compulsory or involuntary ieonversion desalhed in paragraph (5) of subdhilsion (b) ~ of section 934, the basis shall be the same as in the case of the property so eonverted, decrsrxsed me the ‘ amount of any) money received by the taxpapr which was not expended in accordance with- the provisions of law (appiimhle to the year in which such conversion was made) determining e the taxahle\·status ot the gain or loss upon such, conversion, and inereasednin the amount of. gain or decreased in the amount of loss to the taxpayer. recognized upon such conversion yonder . the law applicable to the year Qin which snch conversion was made; _“ ‘ B ~ `IY _ _ A e (11) Iijsuhstantiallyt (identical, property was acquired after December 31, 1920,111 place ot stock or securitim pwhich were _ sold or disposed of and in respect of which loss was not allowed as a deduction under paragraph (5) of subdivision (a) of seetion 955 -or paragraph (4) of subdivision (a). ot section 986 ot this title or of the Revenue Act got 1921, chapter 136, 42 Statutes, page 227 ; the basis in the cse of the property so acquired shall be the basis ln the case of the stock or @curities so sold or disposed of, except that if the repur·ehase_ price was in excess of the sale price such basis shall be increased in the amount of the diHerence,_or it the repurchase prlee was less than the sale priee such basis shall- be deereased in the amoontof the difference. _ ‘ _ c ` ` (b) The basis for pdetermining the gain or loss from the saleor other disposition of property acquired before March 1, . 1913,”shal1‘be (A) the cost of suchproperty (or, lntlge case ot such property as is described in paragraph (1), (4), or (5), ot subdivision.(a), the basis as therein provided), or (B) the fair _market_ralue of such, property as of March 1, 1913, which ever is greater,. In determining the fairmarket value of stock in a corporation as ot: March 1,1913, due regardshall be given to
