26 U.S.C. § 1040
§ 1040. Transfer of certain farm, etc., real property
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1976 by the Tax Reform Act of 1976. Last changed December 17, 2010 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Every change, newest first (8)
- December 17, 2010Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
- June 7, 2001Economic Growth and Tax Relief Reconciliation Act of 2001
- January 12, 1983Public Law 97-448
- August 13, 1981Economic Recovery Tax Act of 1981
- April 2, 1980Public Law 96-223
- April 1, 1980Public Law 96-222
- November 6, 1978Revenue Act of 1978
- October 4, 1976Tax Reform Act of 1976 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A).
To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where the trustee of a trust (any portion of which is included in the gross estate of the decedent) transfers property with respect to which an election was made under section 2032A.
The basis of property acquired in a transfer with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the transfer increased by the amount of the gain recognized to the estate or trust on the transfer.