[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1082-4]

[Page 198]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
GAIN OR LOSS ON DISPOSITION OF PROPERTY--Table of Contents
 
Sec. 1.1082-4  Basis of property acquired by corporation under section  1081(a), 1081(b), or 1081(e) as contribution of capital or surplus, or in  consideration for its own stock or securities.

    If, in connection with an exchange of stock or securities for stock 
or securities as described in section 1081(a), or an exchange of 
property for property as described in section 1081(b), or an exchange as 
described in section 1081(e), property is acquired by a corporation by 
the issuance of its stock or securities, the basis of such property 
shall be determined under section 1082(b). If the corporation issued its 
stock or securities as part or sole consideration for the property 
acquired, the basis of the property in the hands of the acquiring 
corporation is the basis (adjusted to the date of the exchange) which 
the property would have had in the hands of the transferor if the 
transfer had not been made, increased in the amount of gain or decreased 
in the amount of loss recognized under section 1081 to the transferor 
upon the transfer. If any property is acquired by a corporation from a 
shareholder as paid-in surplus, or from any person as a contribution to 
capital, the basis of the property to the corporation is the basis 
(adjusted to the date of acquisition) of the property in the hands of 
the transferor.