358 - InternalRevenueCode 358Basistodistributees....

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Internal Revenue Code   § 358 Basis to distributees. (a) General rule.   In the case of an exchange to which section 351 , 354 , 355 , 356 , or 361 applies—  (1) Nonrecognition property.   The basis of the property permitted to be received under such section without the  recognition of gain or loss shall be the same as that of the property exchanged—  (A) decreased by—  (i) the fair market value of any other property (except money)  received by the taxpayer,  (ii) the amount of any money received by the taxpayer, and  (iii) the amount of loss to the taxpayer which was recognized on  such exchange, and  (B) increased by—  (i) the amount which was treated as a dividend, and  (ii) the amount of gain to the taxpayer which was recognized on  such exchange (not including any portion of such gain which was  treated as a dividend).  (2) Other property.   The basis of any other property (except money) received by the taxpayer shall be its  fair market value.  (b) Allocation of basis.   (1) In general.   Under regulations prescribed by the Secretary, the basis determined under  subsection (a)(1) shall be allocated among the properties permitted to be received  without the recognition of gain or loss.  (2) Special rule for section 355 .   In the case of an exchange to which section 355 (or so much of section 356 as 
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This note was uploaded on 11/21/2010 for the course ACCT 732 taught by Professor Ford,a during the Spring '08 term at Kansas.

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358 - InternalRevenueCode 358Basistodistributees....

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