820 INCOME TAX Stock i ssues excepted . Acquired after De- ce mber 31, 1920, on re- organization and same party still in control . Sto ck, etc ., dis tri b- uted on reorganiza- tion af ter December 3 1, 1923 . Acquired by involun- tary conversion . Wash sale s, of prop- erty acquired for stock disposed of, on which no loss allowed . Post,p.826. Vol. 44, pp. 26, 42. Property acquired during affiliation . SEVENTIETH CONGRESS . SESS . I. Ca. 852 . 1928 . in the same persons or any of them, then the basis shall be the same as it would be in the hands of the transferor, increased in the amount of gain or decreased in the amount of loss recognized to the transferor upon such transfer under the law app lic ab le to the yea r in wh ich the transfer was made . This paragraph shall not apply if the property acquired consists of stock or securities in a corporation a party to the reorganiza- tion, unless acquired by the issuance of stock or securities of the transferee as the consideration in whole or in part for the transfer ; (8) SAME-CORPORATION CONTROLLED BY TRANSFEROR .-If the property was acquired after December 31, 1920, by a corporation by the issuance of its stock or securities in connection with a transaction described in section 112(b) (5) (including, also, cases where part of the consideration for the transfer of such property to the corporation was property or money, in addition to such stock or securities), then the basis shall be the same as it would be in the hands of the transferor, increased in the amo unt of gain or decreased in the amount of los s rec og niz ed to the transferor upon such transfer under the law applicable to the year in which the transfer was made ; (9) TAX-FREE DIS TR IBU TI ONS .-If the property consists of stock or securities distributed after December 31, 1923, to a tax- payer in connection with a transaction described in section 112(g), the basis in the case of the stock in respect of which the distribution was made shall be apportioned, under rules and regula tions presc ribed by the Commiss ioner with the approval of the Secretary, between such stock and the stock or sec urities distribu ted ; ( 10) INVO LUNT ARY CONVERSION .-If the property was acquired as the res ult of a co mpulsory or involunt ary conver sion described in section 112(f), the basis shall be the same as in the case of the property so converted, decreased in the amount of any money received by the taxpayer whi ch was not expended in accordance with the provisions of law (applicable to the ye ar in whic h such con version was made) de termining the taxable status of the g ain or loss upon such conversion, and increased in the amount of gain or decreased in the amount of loss to the taxpayer recognized upon such conversion under the law applicable to the year in which such conversion was made ; (11) WASH SALES OF S TO C K .-I f substa ntially identica l prop- erty was acquired after December 31, 1920, in place of stock or securities which were sold or disposed of and in respect of which loss was not allowed as a deduction under section 118 of this Act, or under section 214 (a) (5) or 234 (a) (4) of the Revenue Act of 1921, the Revenue Act of 1924, or the Rev en ue Act of 1926, the basis in the case of the property so acquired shall be the basis in the case of the stock or securities so sold or disposed of, except that if the repurchase price was in excess of the sal e price such bas is shall be incr eased in the amo unt of the difference, or if the repurchase price was less than the sale price such basis shall be decreased in the amount of the difference ; (12) PROPERTY ACQUIRED DURING AFFILIATION.-In the case of property acquired by a corporation, during a period of affilia- tio n, from a corpor ation wi th which it was affiliat ed, the basis of such property, after su ch period of affiliation, shall be determined, in accordance wi th regulations pre sc rib ed by the Commissioner with the approval of the Secretary, without regard to inter-company transactions in respect of which gain
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