708
73d C ONGRESS . SESS . II. CH. 277. MAY 10, 1934 . INCO ME
laws, relating to wash sales) of the loss from the sale or other OF NET INCOME- disposition of substantially identical stock or securities, then the Costa . Basis.
basis shall be the basis of the stock or securities so sold or disposed of, in creased or decre ased, as the cas e may be , by the differe nce, if any, between the pri ce at which the property was acquired and the price at which such substantially identic al stock or securities were sold or otherwise disposed of . Pr ope rty acquired
(11) PROP ERTY AC QUIR ED DURING AF FILI ATIO N .-In the case of during affiliation .
property acquired by a corporation, during during a period of affiliation from a corporat ion with which i t was af filiated , the ba sis of s uch Adjustment and de- property, after such period of affiliation, shall be determined, in termi nati on of basi s . accordance with regulations prescribed by the Commissioner with the approval of the Secretary, wi th out regard to inter-company transactions in respect of which gain or loss was not recognized . tionPe rio d f afi ia For th e pur poses of this paragraph, the term " period of affilia- tion " means the period during which such corporations were affiliated (determined in a ccordance with the law appl icable thereto) but does not include any taxable year beginning on or after January 1, 1922, unless a consolidated return was made, nor Basis in subsequent any taxable year after the taxable year 1928 . The basis in case yea`s
of pro pe rty acquired by a corporation during any Period in the taxable year 1929 or any subsequent taxable year, in respect of Vol. 45, p. 831
which a consolidated return is made by such corporation under section 141 of this Act or the Revenue Act of 1928 or the Revenue Post, p 721 . Act of 1932, shall be determined in accordance with regulations prescribed under section 141 (b) of this Act or the Revenue Act of 1928 or the Revenue Act of 1932 . The basis in the case of property held by a corporation during any period, in the taxable year 1929 or any subsequent taxable year, in respect of which a consolidated return is made by such corporation under section 141 of this Act or the Revenue Act of 1928 or the Revenue Act of 1932, shall be adjusted in respect of any items relating to such period, in accordance with regulations prescribed under section 141 (b) of this Act or the Revenue Act of 1928 or the Revenue Act of 1932, applicable to such period . Basis established by
(12) BASIS ESTABLISHED BY REVENUE ACT OF 1932.-If the prop- Revenue Act of 1932 . erty was acquired, after February 28, 1913, in any taxable year be ginning prior to January 1, 1934 , and th e basis thereof, for the purposes of the Revenue Act of 1932 was prescribed by section 113 (a) (6), (7), or (9) of such Act, then for the purposes of this Act the basis shall be the same as the basis therein prescribed in t he Rev enue Act of 1932 . Basis for Partn ershi p
(13) PARTNERSHIPS .--If the property was acquired, after Febru- propertS, acquired after February 28,1913 i
ary 28, 1913, by a partnership and the basis is not otherwise deter- nuned un der any of the par ag rap hs (1) to (12), inclusive, of this subsection, then the basis shall be the same as it would be in the h ands of the tran sfer or, incr ease d in the amo unt of g ain or decreased in the amount of loss recognized to the transferor upon such transfer under the law applicable to the year in which the transfer was made. If the property was distributed in kind by a partnership to any partner, the basis of such property in the hands of the partner shall be such part of the basis in his hands of his partnership interest as is properly allocable to such property . Property acquired
(14) PROPERTY ACQUIRED BEFORE MARCH 1, 1913 .-In the case of before March 1913. p ropert y acq uired befor e Mar ch 1, 1913, if the basis otherwise determined under this subsection, adjusted (for the period prior to March 1, 1913) as provided in subsection (b), is less than the fair market value of the property as of March 1, 1913, then the
