§1016 — Adjustments to basis

Perhaps this is a subtle concession by Andersen, but it has no effect on our conclusion because we disagree with his choice ofdepreciation method.

We disagree with respondent’s interpretation of the interplay of DEFRA section 177(d)(2) and section 1016(a)(3).

- 19 - [*19] decline in value to be considered a casualty loss, the Coateses' adjusted basis in property A must be at least $210,000.8 We hold that the Coateses' adjusted basis in property A is at least $210,000.

Section 1016 provides that a basis shall be adjusted "for expenditures * * * properly chargeable to capital account." We have determined that petitioners made capital improve- ments with a cost of$295,000 to Rose Hill during 2000-2005.

Section 1016 provides that proper adjustments to basis in respect ofproperty shall in all cases be made for expenditures properly chargeable to capital.

Because Oglesby sold the rental property for a tax loss during 2005, we hold that his loss should be increased by $4,150, the amount -for which he claimed a deduction.

2008-46 (the basis of property, under section 1012, is generally defined as,cost and that cost is adjusted pursuant to section 1016) ; see also Kikalos v .

Section 1016 provides that proper adjustments shall be - 6 - made to the basis of property for items such as capital expenditures and depreciation allowed or allowable.

r 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. As a general matter, section 1011 requires the use of the cost basis determined under section 1012, adjusted as provided in section 1016 (i.e., the regular adjusted cost basis), for purposes of determining gain or loss. Section 1011 doe

), adjusted as provided in section 1016.”12 Section 1012, in turn, provides that “[t]he basis of property shall [generally] be the cost of such property.” Section 263A then clarifies this definition of basis as it applies to taxpayer-produced real property (or other tangible property) such as the Tate.

og- nized. Section 1011(a) provides that the adjusted basis for determining gain from the sale ofproperty is the basis determined under section 1012 or other applicable sections ofsubchapter O ofthe Code (e.g., section 1015), adjusted as provided in section 1016. Section 1012(a) provides that generally the basis ofproperty is the cost ofthe property. Section 1015(a) provides that generally the basis ofproperty acquired by gift is to be the same as it would be in the hands ofthe donor. Section 3A

For the determination of the adjusted basis of the property at the end of the taxable year see section 1016 and the regulations thereunder.

substantive significance but relates only to the manner of their treatment in the calculation of the PAL. Nor are we persuaded by petitioner's argument that the restoration of depreciation is required by the "proper adjustment" of basis language in section 1016. Whatever the impact of that language might be in the context of a disallowance of a deduction for depreciation which has a permanent effect, it has no bearing herein. Our conclusion that the PAL's cannot be utilized in 1991 but remain a

ners were not entitled to the depreciation deductions - 19 - they claimed for 1990 and 1991. Rather, receipt of the insurance proceeds without repair to the truck required Ruckman, Inc., to make a downward adjustment to its basis in the truck under section 1016. Indeed, the insurance proceeds received by Ruckman, Inc., exceeded its basis in the truck, which would preclude any casualty loss as a result of the accident and would instead ordinarily produce taxable gain. However, because respondent

ed basis of the Note in the hands of CSC Germany at the time of the contribution. Except as otherwise provided in subchapters C, K, and P, the adjusted basis of property is the property’s basis, determined under section 1012, adjusted as provided in section 1016. I.R.C. § 1011(a). Section 1012, for its part, provides that “[t]he basis of property shall be the cost of such property, except as otherwise provided.” I.R.C. § 1012(a). The cost of property is the amount paid for it. Treas. Reg. § 1.10

Specifically, the taxpayer must also maintain written records establishing (1) the item’s manner of acquisition as well as either the item’s approximate date of acquisition or the approximate date the property was substantially completed and (2) the cost or other basis, adjusted as provided by section 1016, of property donated by the taxpayer during the taxable year.

35 [*35] (b) Petitioners have not adequately explained why their customers purportedly used checks so frequently only when they bought gift jewelry but so infrequently for sales in the regular course of business. Shahbaz testified that “we wanted to avoid . . . credit card” processing fees on the gift jewelry. It is unclear, however, why t

Specifically, the taxpayer must also maintain written records establishing (1) the item’s manner of acquisition as well as either the item’s approximate date of acquisition or the approximate date the property was substantially completed and (2) the cost or other basis, adjusted as provided by section 1016, of property donated by the taxpayer during the taxable year.

d from the sale of real property. Someone who sells property is taxed on the gain, not on the sale price. See §§ 1001(a), 1011. The seller gets “basis” for the amount he paid for the property, and his basis is then adjusted according to the rules in section 1016. See § 1012. Adjusted basis is typically what a property owner paid for the property plus what he later spent to improve it, minus allowed or allowable depreciation. §§ 1011(a), 1012(a), 1016; see also Simonsen v. Commissioner, 150 T.C.

Specifically, the taxpayer must also maintain written records establishing (1) the item’s manner of acquisition as well as either the item’s approximate date of acquisition or date the property was substantially completed and (2) the cost or other basis, adjusted as provided by section 1016, of property donated by the taxpayer during the taxable year.

Specifically, the taxpayer must also maintain written records establishing: (1) the item’s manner of acquisition as well as either the item’s approximate date of acquisition or the approximate date the property was substantially completed and (2) the cost or other basis, adjusted as provided by section 1016, of property donated by the taxpayer during the taxable year.

These provisions set forth the regulatory requirements (discussed above) that an apprai- sal summary "shall include" information concerning the manner in which the donor acquired the donated property, the date on which he acquired it, and the "cost or other basis ofthe property adjusted as required by section 1016." Ibid.

are incorrect. Nonetheless, neither party objected to trying the issue. We exercise our discretion to determine Evans's basis in the Newport Beach property. A property's adjusted basis is equal to its cost, plus or minus the adjustments required by section 1016. See sec. 1011(a). One type ofadjustment is to increase basis by the cost incurred to develop the property. See secs. 263A, 1016(a); sec. 1.263(a)-1(d)(2), Income Tax Regs. The taxpayerbears the burden ofproving the cost. See Chandler v.

erence to the amount realized from the disposition ofthe property and the property's adjusted basis. See sec. 1001(a). In general, adjusted basis is - 10 - determined with reference to the cost ofthe property, see sec. 1012, adjusted as provided in section 1016. The transaction statements generated in connection with the stock petitioner acquired in the employee stock plan show the acquisition and the disposition of the stock that petitioner acquired as a participant. The statements, however, do

1001(c); see also sec.

1001(c); see also sec.

12 T.C. 235, 238 (1949), aff'd, 180 F.2d 140 (8th Cir. 1950). Section 1011 provides that a taxpayer's adjusted basis for determiningthe gain or loss from the sale or other disposition ofproperty shall be its cost, adjusted to the extent provided in section 1016. See also sec. 1012. A property's cost is - 7 - [*7] "the amount paid for such property in cash or other property." Sec. 1.1012-1(a), Income Tax Regs. The term "cost" includes "any indebtedness to the seller for the purchase price ofthe

Capital Gain Section 1001(a) provides that "[t]he gain from the sale or other disposition ofproperty shall be the excess ofthe amount realized therefrom over the adjusted basis provided in section 1011 for determining gain".

Cost or Other Basis Requirement An appraisal summarymust include "[t]he cost or other basis ofthe property adjusted as provided by section 1016".22 Sec.

is in the property from the amount he realized from its sale. Section 1011 provides that a taxpayer's adjusted basis for determining the gain or loss from the sale or other disposition ofproperty shall be its cost, adjusted to the extent provided in section 1016. See also sec. 1012. A property's cost is "the amount paid for such property in cash or other property." Sec. 1.1012-1(a), Income Tax Regs. The term "cost" includes "any indebtedness to the seller for the purchase price ofthe property an

Further, no adjustmentunder section 1016 is required.7 Accordingly, Ms.

, Income Tax Regs. Our holding in Smith did not authorize an upward adjustment ofbasis on the basis of property tax assessments. Subject to exceptions not applicable here, the adjusted basis ofproperty is generally its cost, adjusted as provided in section 1016. Sees. 1011 and 1012. a. Pine Avenue Property At trial petitioner testified that he was still in the process ofconstructing the Pine Avenue structure during 2006 and that the construction process was no more than 85% complete at the end o

is in the property from the amount he realized from its sale. Section 1011 provides that a taxpayer's adjusted basis for determining the gain or loss from the sale or other disposition ofproperty shall be its cost, adjusted to the extent provided in section 1016. See also sec. 1012. A property's cost is "the amount paid for such property in cash or other property." Sec. 1.1012-1(a), Income Tax Regs. The term "cost" includes "any indebtedness to the seller for the purchase price ofthe property an

1001(c); see also sec.

loss from the sale or other disposition ofproperty reflects the difference between the amount realized and the property's adjusted basis. See sec. 1001(a). Adjusted basis is generally basis determined under section 1012, adjusted as determined under section 1016. Sec. 1011. Under section 1012, basis is generally the property's cost. In the case ofstock in an S corporation, - 10 - [*10] adjustments to basis include adjustments required under section 1367.1° Sec. 1016(a)(17). On briefthe parties f

Section 1011(a) generally provides that a taxpayer's adjusted basis for determining the gain from the sale or other disposition of property shall be its cost, adjusted to the extent provided by section 1016." See also sec.

e (130,599) 130,599 Total 177,905 Someone who sells property is taxed on the gain, not the sale price. See secs. 1001(a), 1011. The seller gets "basis" for the amount he paid for the property, and his basis is then adjusted according to the rules in section 1016. See secs. 1012, 1016. The gain is basically the amount the seller receives reduced by the seller's adjusted basis in the property. See sec. 1011. The Commissioner argues that the Esrigs had more gain on the sale oftheir properties in 20

After the transfer in 1992 the two cotenants, petitioner and Benedict, held the property with a total basis of $320,000. There was a subsequent transfer of the property between the cotenants. ,As part of the 1998 divorce settlement, Benedict was required to-deed to petitioner his remaining ownership interest in the property. Petitioner t

to improve it. Secs. 1011, 1012, 1016. A taxpayer can't generally ded ct these payments right away because ithey provide a benefi that lasts longer than just one taxable year. But before calculating the capital gain the basis must be adjusted under section 1016. And depreciation is one of those adjustments we need to figu e out in this case. See sec. 1016 (a) (2) . Most property oesn't just fall apa t one day, it s In his pretrial memorandum and at trial the Commissioner referred to this as Will

ting, acquiring, or defending title to the Del Mar Avenue property . Payment of the judgment obtained by the attorney was a nondeductible personal expense under section 262 and did not increase petitioners' basis in the Del Mar Avenue property under section 1016 . See Heger v . Commissioner , T .C . Memo . 1993-408, affd . without published opinion 35 F .3d 561 (5th Cir . 1994) . Petitioners claim that they borrowed $25,000 from relatives and repaid the loan at the time the Del Mar Avenue proper

value of the property at the time of the gift, then, for purposes of determining loss, the basis shall be the fair market value. Sec. 1015(a). A taxpayer's adjusted basis for determining gain or loss is the taxpayer's basis, adjusted as provided in section 1016. Sec. 1011(a). Under section 1016(a) (1), the basis of property must be adjusted for, among other things, expenditures, receipts, losses, or other items, properly chargeable to capital. 3(...continued) respondent's bank deposits analysis

265(b)(2)(A), "the taxpayer's average adjusted bases (within the meaning of section 1016) of tax-exempt obligations" is similar to the relevant text of sec .

Specifically, the taxpayer must also maintain written records establishing: (1) The item’s manner of acquisition as well as either the item’s approximate date of acquisition or the approximate date the property was substantially completed and (2) the cost or other basis, adjusted as provided by section 1016, of property donated by the taxpayer during the taxable year.

— For purposes of paragraph (1), the portion of the taxpayer’s interest expense which is allocable to tax-exempt interest is an amount which bears the same ratio to such interest expense as— (A) the taxpayer’s average adjusted bases (within the meaning of section 1016) of tax-exempt obligations acquired after August 7, 1986, bears to (B) such average adjusted bases for all assets of the taxpayer.

haritable contribution was re- quired (1) to provide in the donee acknowledgment in Form 8283 the name of such organization, its employer identification number, and its address and (2) to sign and date such donee acknowledgment. - 33 - provided by section 1016. Neither Ms. Schadle, Mr. Tutor, nor Mr. Johnston was aware that TMC had constructed a new building on KQC’s land with HHS’s grant funds. Nor was any of them aware that KQC was reporting in KQC’s 1999 return a charitable contribution in an

fair market value of the property at the time of the contribution and the method utilized in determining the fair market value; the manner and date of acquisition of the property; and the cost or other basis of the property, adjusted as provided by section 1016. See sec. 1.170A-13(b)(2)(ii) and (3)(i), Income Tax Regs. The only information in evidence is the letter from NKF confirming receipt of the truck with a description. There is no reliable evidence of the fair market value of the truck at

12 T.C. 235, 238 (1949), affd. 180 F.2d 140 (8th Cir. 1950). Section 1011 provides that a taxpayer’s adjusted basis for determining the gain or loss from the sale or other disposition of property shall be its cost, adjusted to the extent provided by section 1016. See also sec. 1012. Under section 1016(a)(1), the basis of property must be adjusted for expenditures, receipts, losses, or other items, properly chargeable to capital account. The cost of improvements and betterments made to a taxpayer

As pertinent here, section 1011(a) defines the term "adjusted basis" as the basis determined under section 1012, adjusted as provided under section 1016, and section 1012 pro- vides that the basis of property is its cost.

from that sale. The issue that remains for decision is petitioner’s basis in parcel 1. The adjusted basis for determining gain from the sale of property, whenever acquired, shall be the basis determined under section 1012 and adjusted as provided in section 1016. Sec. 1011(a). Under section 1012, the basis of property shall be the cost of such property. Under section 1016(a)(1), the basis of property shall be adjusted for expenditures, receipts, losses, or other items, properly chargeable to cap

determining loss from the sale or other disposition of the property. Under section 1.1011-1, Income Tax Regs., adjusted basis is the cost or other basis of property under section 1012, adjusted to reflect allowable deductions for depreciation under section 1016. - 13 - The claimed loss was a term life insurance policy that had no cash surrender value upon termination, as distinguished from a whole life insurance policy that generally has a cash surrender value over time as premiums are paid. Pe

of the $76,771 claimed adjusted basis in the Barracuda. Section 1011(a) provides that the adjusted basis for determining gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Generally, under section 1012, the basis of property is its cost. The cost is the amount paid for such property in cash or other property. Sec. 1.1012-1(a), Income Tax Regs. The cost basis is increased by the cost of capital improvement

n turn, describes an "adjusted basis" provided by section 1011. The adjusted cost basis under section 1011 for determining gain or loss from the sale of property is the cost basis or other basis determined under section 1012 adjusted as provided by section 1016. Annual depletion deductions are allowed only to the owner of an "economic interest" in standing timber. See Palmer v. Bender, 287 U.S. 551, 557 (1933); Georgia-Pacific Corp. v. United States, 648 F.2d 653, 657-659 (9th Cir. 1981); sec. 1

)(1)(ii), Income Tax Regs.; see sec. 1.165-1(c)(1), Income Tax Regs. Under section 1.1011-1, Income Tax Regs., adjusted basis is the cost or other basis of property under section 1012, adjusted to reflect allowable deductions for depreciation under section 1016. Also in determining the amount of loss deductible under section 165, “fair market value” means “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or

n in the notice of deficiency) that the Compton residence ceased being petitioner’s personal residence and instead became rental property prior to its sale. - 6 - generally is equal to the taxpayer’s cost of the property, adjusted as required under section 1016. The basis of community property transferred pursuant to a divorce depends upon the nature of the property division.5 If the division is a nontaxable one, e.g., an equal division of strictly community property, the transferee spouse recei

ehouse and the new warehouse were separate and distinct properties. Only the old warehouse was involved in the casualty on December 13, 1993, and it was completely destroyed before the new warehouse was even in existence. 7(...continued) provided by sec. 1016. Secs. 1.1016-2 and 1.1016-3, Income Tax Regs., provide that a taxpayer’s cost basis must be increased by the cost of improvements and betterments made to property, and decreased by amortization, depreciation, and obsolescence. - 10 - Secti

As pertinent here, (1) petitioner’s adjusted basis in determining the gain or the loss from the sale of the Church Street property is his basis in that property determined under section 1012, adjusted as provided in section 1016,88 see sec.

As pertinent here, section 1011(a) provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016, and section 1012 provides that the basis of property is its cost.

Section 1367 provides additional, special rules with respect to adjusting basis in an S corporation investment. The disagreement between the parties concerns only petitioner's cost basis in his Wedgewood investment. The parties disagree as to whether petitioner's cost basis in his Wedgewood investment includes the various payments repres

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

For Federal income tax purposes, the general rule provides that taxpayers recover tax free their cost or tax basis for property on which gain is to be computed.

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

ction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or ot er disposition of property is the basis determined under sectio t 1012, adjusted as provided in section 1016. Section 1012 provi es that the basis of property is the cost of the property an under section 362(a) such basis in a transferor carries over tó a corporation where such property is contributed tö the corporation for stock under section 35

l depreciation from 1985 through 1989.5 Pursuant to section 1011(a), the adjusted basis for determining the gain or loss from the sale or other disposition of property is the cost of the property determined under section 1012 adjusted as provided in section 1016. Section 1016(a)(2) provides, in effect, that the basis of the property shall be adjusted by the amount of depreciation previously allowed, but not less than the amount allowable, with respect to the property. Depreciation "allowed" is t

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

saction intended to reach the ultimate result. - 542 - Section 1011 provides that the adjusted basis for determining the gain or loss from the sale or other disposition of property is the basis determined under section 1012, adjusted as provided in section 1016. Section 1012 provides that the basis of property is the cost of the property and under section 362(a) such basis in a transferor carries over to a corporation where such property is contributed to the corporation for stock under section

Section 1016(a)(1) provides in pertinent part that— adjustment * * * [to basis shall be made] (1) for expenditures, receipts, losses, or other items, properly chargeable to capital account * * * Petitioners contend that under section 1016, where property that is sold does not have a separate, identifiable cost or tax basis and where the property sold is sufficiently integrated with or appurtenant to related property, the taxpayer’s total cost for the related property should be charged to the tra

ant to section 1011(a), the adjusted basis for determining the gain or loss from the sale or other disposition of property is the cost of the property determined under section 1012 (with certain exceptions not material here) adjusted as provided in section 1016. Section 1016(a)(2) provides, in effect, that the basis of the property shall be adjusted by the amount of any amortization previously allowed, but not less than the amount allowable, with respect to the property. Amortization "allowed" i

ant to section 1011(a), the adjusted basis for determining the gain or loss from the sale or other disposition of property is the cost of the property determined under section 1012 (with certain exceptions not material here) adjusted as provided in section 1016. Section 1016(a)(2) provides, in effect, that the basis of the property shall be adjusted by the amount of any amortization previously allowed, but not less than the amount allowable, with respect to the property. Amortization "allowed" i

oposes the following allocation: 2 As pertinent to this case, sec. 1011 provides that the adjusted basis for determining gain or loss from the sale or other disposition of property is the cost of such property, see sec. 1012, adjusted as provided in sec. 1016. Sec. 1016(a)(1), in part, provides that proper adjustment is to be made for expenditures, receipts, losses, or other items, properly . chargeable to capital account. Sec. 1.1016-2(a), Income Tax Regs., in part, states: "The cost or other b

oposes the following allocation: 2 As pertinent to this case, sec. 1011 provides that the adjusted basis for determining gain or loss from the sale or other disposition of property is the cost of such property, see sec. 1012, adjusted as provided in sec. 1016. Sec. 1016(a)(1), in part, provides that proper adjustment is to be made for expenditures, receipts, losses, or other items, properly chargeable to capital account. Sec. 1.1016-2(a), Income Tax Regs., in part, states: “The cost or other bas

oposes the following allocation: 2 As pertinent to this case, sec. 1011 provides that the adjusted basis for determining gain or loss from the sale or other disposition of property is the cost of such property, see sec. 1012, adjusted as provided in sec. 1016. Sec. 1016(a)(1), in part, provides that proper adjustment is to be made for expenditures, receipts, losses, or other items, properly chargeable to capital account. Sec. 1.1016-2(a), Income Tax Regs., in part, states: “The cost or other bas

substantive significance but relates only to the manner of their treatment in the calculation of the PAL. Nor are we persuaded by petitioner’s argument that the restoration of depreciation is required by the “proper adjustment” of basis language in section 1016. Whatever the impact of that language might be in the context of a disallowance of a deduction for depreciation which has a permanent effect, it has no bearing herein. Our conclusion that the PAL’s cannot be utilized in 1991 but remain a

uant to section 1011(a), the adjusted basis for determining the gain or loss from the sale or other disposition of property is the cost of the property determined under section 1012 (with certain exceptions not material here) adjusted as provided in section 1016. Section 1016(a)(2) provides, in effect, that the basis of the property shall be adjusted by the amount of any amortization previously allowed, but not less than the amount allowable, with respect to the property. Amortization “allowed”

the deduction for any bad debt shall be the adjusted basis provided in section 1011 for determining the loss from the sale or other disposition of property. The "adjusted basis" of property is the property's unadjusted basis, adjusted as provided in section 1016. Sec. 1011(a). Typically, a taxpayer's basis in property is the cost of that property. Sec. 1012; sec. 1.1012-1(a), Income Tax Regs. In this instance, petitioners bear the burden of proving petitioner's basis in the demand note. Rule 142

basis in the property. Section 1001 provides that the gain from the sale of property is the excess of the amount realized over the adjusted basis. The adjusted basis of property is its basis (cost) as determined under section 1011 and as adjusted by section 1016. Sec. 1012. The basis is adjusted for the costs of improvements and betterments made to the property. Sec. 1016(a)(1); sec. 1.1016-2(a), Income Tax Regs. Petitioners paid $300,000 for 137 acres of the Antioch property and sold 117 acres

As pertinent here, section 1011(a) defines the term "adjusted basis" as the basis determined under section 1012, adjusted as provided under section 1016, and section 1012 provides that the basis of property is its cost.

basis in the property. Section 1001 provides that the gain from the sale of property is the excess of the amount realized over the adjusted basis. The adjusted basis of property is its basis (cost) as determined under section 1011 and as adjusted by section 1016. Sec. 1012. The basis is adjusted for the costs of improvements and betterments made to the property. Sec. 1016(a)(1); sec. 1.1016-2(a), Income Tax Regs. Petitioners paid $300,000 for 137 acres of the Antioch property and sold 117 acres

As pertinent here, section 1011(a) defines the term "adjusted basis" as the basis determined under section 1012, adjusted as provided in section 1016, and section 1012 provides that the basis of property is its cost.

gain from the sale of property shall be the excess of the amount realized over the adjusted basis. Sec. 1001(a). The adjusted basis for determining gain or loss from the sale of property is the basis (cost) of such property, adjusted as provided in section 1016. Secs. 1011, 1012. Section 1016 adjustments to basis pertinent to the basis of a personal residence include increases due to capital expenditures, and reductions due to nonrecognition of gain on a previous residence under section 1034(e).

The "adjusted basis" of property exchanged is the property's unadjusted basis (e.g., section 1012 cost basis) adjusted as provided in section 1016 (e.g., reduced for depreciation allowable).