72d CONGRESS . SESS. I. CH. 209. JUNE 6, 1932 .
201 ated (determined in accordance with the law applicable thereto)
WC 0'01 T"a but does not include any taxable year beginning on or after Janu- ary 1, 1922, unless a consolidated return was made, nor any taxable year after the taxable year 1928 . The basis in case of property y Basis in subsequent acquired by a corporation during any period, in the taxable year 1929 or any subse quent taxabl e year , in re spect of whi ch a c on- P6n 4s; P2 1& 831. solidated return is made by such corporation under section 141 of this Act or the R evenue Ac t of 1928 , shall be determ ined in a ccord- ance with regulations prescribed under section 141 (b) of this Act or the Revenue Act of 1928 . The basis in the case of property held by a corpor ation during any p eriod, in the taxab le yea r 1929 or any s ubsequ ent ta xable year, in res pect of which a con solida ted return is made by such corporation under section 141 of this Act or the Revenue Act of 1928, shall be adjusted in respect of any items relating to such period in accordance with regulations pre- scribed under section 141 (b j of this Act or the Revenue Act of 1928, ap_plicable to such period . (13) YROPE(tTY ACQUIRED BEFORE MARCH 1, 1913 .-In the case of before pMarch 1 ,1913 . d property acquired before March 1, 1913, if the basis otherwise determined under this subsection, adjusted as provided in subsec- tion (b), is less than the fair market value of the property as of March 1, 1913, then the basis sh all be s uch fair market va lue . In assets . market value of 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 . (b) ADJUSTED BAsis .-The adjusted basis for determining the de aim"i~g g~ f or gain or loss from the sale or other disposition of property whenever loss. acquired, shall be the basis determined under subsection (a j, adjusted as hereinafter provided . (1) GENERAL RULE .-Proper adju stment in re spect of the prop- General l rule caps. erty shall in all cases be made-
tai account . (A) for expenditures, receipts, losses, or other items, properly carrying charges ou chargeab le to cap ital acco unt, incl uding ta xes and o ther carr ying u nim pro ved re al pro p. charges on unimproved and unproductive real property, but no e rty such adjustment shall be made for taxes or other carrying charges for which deductions have been taken by the taxpayer in determining net income for the taxable year or prior taxable years ; (B) in respe ct 'of any p eriod since Februar y 28, 1913, for De pletio n, etc ., si nce exhaustion, wear and tear, obsolescence, amortization, and deple- February 28, 190 . tion, to the extent allowed (but not less than the amount allowable) under this Act or prior income tax laws . Where Maximum allowance, for any taxable year prior to the taxable year 1932 the depletion allowance was based on discovery value or a percentage of val ue per discovery o income , then th e adjustm ent for d epletion for such year shal l be income. based on the depletion which would have been allowable for such year i f comp uted w ithout refer ence to disco very v alue o r a percentage of income ; (C) in respect of any period prior to March 1, 1913, for Mercyh Per iod pr ior to exha usti on, w ear a nd t ear, obsol escen ce, amort izati on, and deplet ion, to t he extent sustaine d ; (D) in the case of stock (to the extent not provided for in Basis reduced by tax . the f oregoi ng sub paragr aphs) for' t he amou nt of distri bution s free distributions . previously made which, under the law applicable to the year in which the d istrib ution was ma de, ei ther we re tax -free or wer e appli cable in red uction of ba sis (n ot incl uding distri bution s made by a corporation, which was classified as a personal service corporation under the provisions of the Revenue Act of 1918 or 1921, out of its earnings or profits which were taxable in
