# 26 U.S.C. § 1011: Adjusted basis for determining gain or loss

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s1011>. Cite pinpoints as 26 U.S.C. § 1011(a)(1).

## § 1011(a) General rule

The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under 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.

## § 1011(b) Bargain sale to a charitable organization

If a deduction is allowable under section 170 (relating to charitable contributions) by reason of a sale, then the adjusted basis for determining the gain from such sale shall be that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property.

## Regulations

- [Treas. Reg. § 1.1011-1](/26/reg/1.1011-1.md): Adjusted basis. (interprets § 1011)
- [Treas. Reg. § 1.1011-2](/26/reg/1.1011-2.md): Bargain sale to a charitable organization. (interprets § 1011)

## Leading cases

- [Ebben v. Commissioner, 783 F.2d 906 (9th Cir. 1986)](https://www.courtlistener.com/opinion/8947769/ebben-v-commissioner/)
- [Guest v. Commissioner, 77 T.C. 9 (1981)](https://www.courtlistener.com/opinion/4705488/guest-v-commissioner/)
- [Estate of Bullard v. Commissioner, 87 T.C. 261 (1986)](https://www.courtlistener.com/opinion/4706316/estate-of-bullard-v-commissioner/)

## Connections

Cites: § 170 Charitable, etc., contributions and gifts; § 1012 Basis of property—cost; § 1016 Adjustments to basis

Cited by: § 165 Losses; § 166 Bad debts; § 167 Depreciation; § 612 Basis for cost depletion; § 1001 Determination of amount of and recognition of gain or loss

Derived from: 1939 § 113(b)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 296
- 1969-12-30: [Pub. L. 91-172](/26/act/91-172.md), 83 Stat. 564