# 26 U.S.C. § 1001: Determination of amount of and recognition of gain or loss Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 1001(a)(1). ## § 1001(a) Computation of gain or loss The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the adjusted basis provided in such section for determining loss over the amount realized. ## § 1001(b) Amount realized The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received. In determining the amount realized— **§ 1001(b)(1)** there shall not be taken into account any amount received as reimbursement for real property taxes which are treated under section 164(d) as imposed on the purchaser, and **§ 1001(b)(2)** there shall be taken into account amounts representing real property taxes which are treated under section 164(d) as imposed on the taxpayer if such taxes are to be paid by the purchaser. ## § 1001(c) Recognition of gain or loss Except as otherwise provided in this subtitle, the entire amount of the gain or loss, determined under this section, on the sale or exchange of property shall be recognized. ## § 1001(d) Installment sales Nothing in this section shall be construed to prevent (in the case of property sold under contract providing for payment in installments) the taxation of that portion of any installment payment representing gain or profit in the year in which such payment is received. ## § 1001(e) Certain term interests **§ 1001(e)(1) In general.** In determining gain or loss from the sale or other disposition of a term interest in property, that portion of the adjusted basis of such interest which is determined pursuant to section 1014, 1015, or 1041 (to the extent that such adjusted basis is a portion of the entire adjusted basis of the property) shall be disregarded. **§ 1001(e)(2) Term interest in property defined.** For purposes of paragraph (1), the term “term interest in property” means— **§ 1001(e)(2)(A)** a life interest in property, **§ 1001(e)(2)(B)** an interest in property for a term of years, or **§ 1001(e)(2)(C)** an income interest in a trust. **§ 1001(e)(3) Exception.** Paragraph (1) shall not apply to a sale or other disposition which is a part of a transaction in which the entire interest in property is transferred to any person or persons. ## Regulations - [Treas. Reg. § 1.1001-1](/26/reg/1.1001-1.md): Computation of gain or loss. (interprets § 1001) - [Treas. Reg. § 1.1001-2](/26/reg/1.1001-2.md): Discharge of liabilities. (interprets § 1001) - [Treas. Reg. § 1.1001-3](/26/reg/1.1001-3.md): Modifications of debt instruments. (interprets § 1001) - [Treas. Reg. § 1.1001-4](/26/reg/1.1001-4.md): Modifications of certain derivative contracts. (interprets § 1001) - [Treas. Reg. § 1.1001-5](/26/reg/1.1001-5.md): European Monetary Union (conversion to the euro). (interprets § 1001) - [Treas. Reg. § 1.1001-6](/26/reg/1.1001-6.md): Transition from certain interbank offered rates. (interprets § 1001) - [Treas. Reg. § 1.1001-7](/26/reg/1.1001-7.md): Computation of gain or loss for digital assets. (interprets § 1001) ## Final rules - [90 FR 1868](https://www.federalregister.gov/documents/2025/01/10/C1-2024-30267/reissuance-of-state-or-local-bonds) (2025): Reissuance of State or Local Bonds - [89 FR 56480](https://www.federalregister.gov/documents/2024/07/09/2024-14004/gross-proceeds-and-basis-reporting-by-brokers-and-determination-of-amount-realized-and-basis-for) (2024): Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions - [82 FR 6235](https://www.federalregister.gov/documents/2017/01/19/2017-01365/application-of-modified-carryover-basis-to-general-basis-rules) (2017): Application of Modified Carryover Basis to General Basis Rules - [80 FR 48249](https://www.federalregister.gov/documents/2015/08/12/2015-19846/basis-in-interests-in-tax-exempt-trusts) (2015): Basis in Interests in Tax-Exempt Trusts - [78 FR 66639](https://www.federalregister.gov/documents/2013/11/06/2013-26575/modifications-of-certain-derivative-contracts) (2013): Modifications of Certain Derivative Contracts - [78 FR 54758](https://www.federalregister.gov/documents/2013/09/06/2013-21752/modification-of-treasury-regulations-pursuant-to-section-939a-of-the-dodd-frank-wall-street-reform) (2013): Modification of Treasury Regulations Pursuant to Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act - [76 FR 43892](https://www.federalregister.gov/documents/2011/07/22/2011-18529/modifications-of-certain-derivative-contracts) (2011): Modifications of Certain Derivative Contracts - [76 FR 39278](https://www.federalregister.gov/documents/2011/07/06/2011-16856/modification-of-treasury-regulations-pursuant-to-section-939a-of-the-dodd-frank-wall-street-reform) (2011): Modification of Treasury Regulations Pursuant to Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act - [76 FR 1063](https://www.federalregister.gov/documents/2011/01/07/2011-86/modifications-of-debt-instruments) (2011): Modifications of Debt Instruments - [72 FR 42291](https://www.federalregister.gov/documents/2007/08/02/E7-14852/qualified-severance-of-a-trust-for-generation-skipping-transfer-gst-tax-purposes) (2007): Qualified Severance of a Trust for Generation-Skipping Transfer (GST) Tax Purposes - [66 FR 2215](https://www.federalregister.gov/documents/2001/01/11/01-252/conversion-to-the-euro) (2001): Conversion to the Euro - [63 FR 40366](https://www.federalregister.gov/documents/1998/07/29/98-20023/conversion-to-the-euro) (1998): Conversion to the Euro - [63 FR 4394](https://www.federalregister.gov/documents/1998/01/29/98-2093/modifications-of-bad-debts-and-dealer-assignments-of-notional-principal-contracts) (1998): Modifications of Bad Debts and Dealer Assignments of Notional Principal Contracts - [61 FR 32926](https://www.federalregister.gov/documents/1996/06/26/96-15830/modifications-of-debt-instruments) (1996): Modifications of Debt Instruments - [61 FR 30133](https://www.federalregister.gov/documents/1996/06/14/96-14918/debt-instruments-with-original-issue-discount-contingent-payments-anti-abuse-rule) (1996): Debt Instruments With Original Issue Discount; Contingent Payments; Anti-Abuse Rule ## Leading cases - [Commissioner v. Tufts, 461 U.S. 300 (1983)](https://www.courtlistener.com/opinion/110924/commissioner-v-tufts/) - [Cottage Savings Assn. v. Commissioner, 499 U.S. 554 (1991)](https://www.courtlistener.com/opinion/112575/cottage-savings-assn-v-commissioner/) - [Alexander v. Internal Revenue Service, 72 F.3d 938 (1st Cir. 1995)](https://www.courtlistener.com/opinion/196488/alexander-v-internal-revenue-service-of-the-united-states/) ## Proposed regulations (not in force) - [Prop. Treas. Reg. § 1.1001-1](/26/prop/1.1001-1_E6-17301.md): Computation of gain or loss. (REG-141901-05, proposed 2006-10-18) - [Prop. Treas. Reg. § 1.1001-6](/26/prop/1.1001-6_2019-22042.md): Transition from interbank offered rates. (REG-118784-18, proposed 2019-10-09) ## Connections Cites: § 164 Taxes; § 1011 Adjusted basis for determining gain or loss; § 1014 Basis of property acquired from a decedent Cited by: § 167 Depreciation; § 331 Gain or loss to shareholder in corporate liquidations; § 368 Definitions relating to corporate reorganizations Derived from: 1939 § 22(f); 1939 § 111 ## Amendments - 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 295 - 1969-12-30: [Pub. L. 91-172](/26/act/91-172.md), 83 Stat. 579 - 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1784 - 1978-11-06: [Pub. L. 95-600](/26/act/95-600.md), 92 Stat. 2928 - 1980-04-02: [Pub. L. 96-223](/26/act/96-223.md), 94 Stat. 299 - 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 794 - 1993-08-10: [Pub. L. 103-66](/26/act/103-66.md), 107 Stat. 474