Internal Revenue Code · 26 U.S.C.
§ 1001. Determination of amount of and recognition of gain or loss
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1001
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- December 30, 1969 by Pub. L. 91–172
- Last amended
- August 10, 1993 by Pub. L. 103–66
- Amendments
- 5 dated changes in the source credit
- Length
- 5 subsections · 470 words · about 2 min to read
- Defines
- 1 term
- Cross-references
- cites 3; cited by 3 Code sections and 61 other regulations
- Regulations
- 7 issued under this section
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.
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.
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.
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.
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.
(Aug. 16, 1954, ch. 736, 68A Stat. 295; Pub. L. 91–172, title II, § 231(c)(2), title V, § 516(a), Dec. 30, 1969, 83 Stat. 579, 646; Pub. L. 94–455, title XIX, § 1901(a)(121), Oct. 4, 1976, 90 Stat. 1784; Pub. L. 95–600, title VII, § 702(c)(9), Nov. 6, 1978, 92 Stat. 2928; Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299; Pub. L. 98–369, div. A, title IV, § 421(b)(4), July 18, 1984, 98 Stat. 794; Pub. L. 103–66, title XIII, § 13213(a)(2)(E), Aug. 10, 1993, 107 Stat. 474.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 1001
- § 1.1001-1 Computation of gain or loss.
- § 1.1001-2 Discharge of liabilities.
- § 1.1001-3 Modifications of debt instruments.
- § 1.1001-4 Modifications of certain derivative contracts.
- § 1.1001-5 European Monetary Union (conversion to the euro).
- § 1.1001-6 Transition from certain interbank offered rates.
- § 1.1001-7 Computation of gain or loss for digital assets.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 1011 Adjusted basis for determining gain or loss
- § 164(d) Taxes
- § 1014 Basis of property acquired from a decedent
Cited by 3 Code sections
- § 167(e)(5)(A) Depreciation
- § 331(c) Gain or loss to shareholder in corporate liquidations
- § 368(a)(2)(F)(vi) Definitions relating to corporate reorganizations
Cited in 61 regulations not issued under it
- § 1.25E-3 Transfer of credit.
- § 1.30D-5 Transfer of credit.
- § 1.44-3 Certificate by seller.
- § 1.61-6 Gains derived from dealings in property.
- § 1.61-12 Income from discharge of indebtedness.
- § 1.141-7 Special rules for output facilities.
- § 1.148-4 Yield on an issue of bonds.
- § 1.163-5 Denial of interest deduction on certain obligations issued after December 31, 1982, unless issued in registered form.
- § 1.164-6 Apportionment of taxes on real property between seller and purchaser.
- § 1.168(i)-1 General asset accounts.
- § 1.217-2 Deduction for moving expenses paid or incurred in taxable years beginning after December 31, 1969.
- § 1.331-1 Corporate liquidations.
- § 1.338-3 Qualification for the section 338 election.
- § 1.338-11 Effect of section 338 election on insurance company targets.
- § 1.357-1 Assumption of liability.
- § 1.358-6 Stock basis in certain triangular reorganizations.
- § 1.367(b)-10 Acquisition of parent stock or securities for property in triangular reorganizations.
- § 1.382-9 Special rules under section 382 for corporations under the jurisdiction of a court in a title 11 or similar case.
- § 1.460-4 Methods of accounting for long-term contracts.
- § 1.461-4 Economic performance.
- § 1.468A-5 Nuclear decommissioning fund—miscellaneous provisions.
- § 1.468B-2 Taxation of qualified settlement funds and related administrative requirements.
- § 1.468B-3 Rules applicable to the transferor.
- § 1.468B-9 Disputed ownership funds.
Show 37 more
- § 1.597-5 Taxable Transfers.
- § 1.636-1 Treatment of production payments as loans.
- § 1.643(b)-1 Definition of income.
- § 1.752-1 Treatment of partnership liabilities.
- § 1.860G-2 Other rules.
- § 1.861-6 Sale of real property.
- § 1.897-1 Taxation of foreign investment in United States real property interests, definition of terms.
- § 1.956-1 Shareholder's pro rata share of the average of the amounts of United States property held by a controlled foreign corporation.
- § 1.956-2 Definition of United States property.
- § 1.956-4 Certain rules applicable to partnerships.
- § 1.987-2 Attribution of items to eligible QBUs; definition of a transfer and related rules.
- § 1.988-2 Recognition and computation of exchange gain or loss.
- § 1.1002-1 Sales or exchanges.
- § 1.1012-1 Basis of property.
- § 1.1014-5 Gain or loss.
- § 1.1015-1 Basis of property acquired by gift after December 31, 1920.
- § 1.1031(j)-1 Exchanges of multiple properties.
- § 1.1031(k)-1 Treatment of deferred exchanges.
- § 1.1038-2 Reacquisition and resale of property used as a principal residence.
- § 1.1055-2 Determination of amount realized on the transfer of the right to hold real property subject to liabilities under a redeemable ground rent.
- § 1.1060-1 Special allocation rules for certain asset acquisitions.
- § 1.1081-4 Exchanges of property for property by corporations.
- § 1.1202-1 Deduction for capital gains.
- § 1.1274-5 Assumptions.
- § 1.1274A-1 Special rules for certain transactions where stated principal amount does not exceed $2,800,000.
- § 1.1275-2 Special rules relating to debt instruments.
- § 1.1296-1 Mark to market election for marketable stock.
- § 1.1361-5 Termination of QSub election.
- § 1.1400Z2(b)-1 Inclusion of gains that have been deferred under section 1400Z-2(a).
- § 1.1446(f)-2 Withholding on the transfer of a non-publicly traded partnership interest.
- § 1.1473-1 Section 1473 definitions.
- § 1.1502-13 Intercompany transactions.
- § 1.1502-30 Stock basis after certain triangular reorganizations.
- § 1.1502-80 Applicability of other provisions of law.
- § 1.9006-1 Interest and penalties in case of certain taxable years.
- § 3.2 Ceiling on deposits.
- § 301.9001 Statutory provisions; Outer Continental Shelf Lands Act Amendments of 1978.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 103–66Parts changed in 1993: (f)
- Amended by Pub. L. 98–369Parts changed in 1984: (e)(1)
- Amended by Pub. L. 96–223Parts changed in 1980: (e)(1)
- Amended by Pub. L. 95–600Parts changed in 1978: (e)(1)
- Amended by Pub. L. 94–455Parts changed in 1976: (c)
- Enacted by Pub. L. 91–172Parts changed in 1969: (e) (f)
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter O Gain or Loss on Disposition of Property
- Part I DETERMINATION OF AMOUNT OF AND RECOGNITION OF GAIN OR LOSS
Nearby sections
- § 1001 Determination of amount of and recognition of gain or loss
- § 1002 Repealed
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1993—Subsec. (f). Pub. L. 103–66 struck out heading and text of subsec. (f). Text read as follows: “For treatment of certain expenses incident to the sale of a residence which were deducted as moving expenses by the taxpayer or his spouse under section 217(a), see section 217(e).”
1984—Subsec. (e)(1). Pub. L. 98–369 inserted reference to section 1041.
1980—Subsec. (e)(1). Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below.
1978—Subsec. (e)(1). Pub. L. 95–600 inserted reference to section 1023. See Repeals note below.
1976—Subsec. (c). Pub. L. 94–455 substituted provision recognizing the entire amount of gain or loss, except as otherwise provided, for provision referring to section 1002 for the determination of the extent of gain or loss to be recognized.
1969—Subsec. (e). Pub. L. 91–172, § 516(a), added subsec. (e).
Subsec. (f). Pub. L. 91–172, § 231(c)(2), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Amendment by Pub. L. 103–66 applicable to expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103–66 set out as a note under section 62 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 applicable to transfers after July 18, 1984, in taxable years ending after such date, subject to election to have amendment apply to transfers after 1983 or to transfers pursuant to existing decrees, see section 421(d) of Pub. L. 98–369, set out as an Effective Date note under section 1041 of this title.
Effective Date of 1980 Amendment and Revival of Prior Law
Amendment by Pub. L. 96–223 (repealing section 702(c)(9) of Pub. L. 95–600 and the amendment made thereby, which had amended this section) applicable in respect of decedents dying after Dec. 31, 1976, and except for certain elections, this title to be applied and administered as if those repealed provisions had not been enacted, see section 401(b), (e) of Pub. L. 96–223, set out as a note under section 1023 of this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–600 effective as if included in the amendments and additions made by, and the appropriate provisions of Pub. L. 94–455, see section 702(c)(10) of Pub. L. 95–600, set out as a note under section 1014 of this title.
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Effective Date of 1969 Amendment
Amendment by section 231(c)(2) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 231(d) of Pub. L. 91–172, set out as a note under section 217 of this title.
Pub. L. 91–172, title V, § 516(d), Dec. 30, 1969, 83 Stat. 648, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) The amendment made by subsection (a) [amending this section] shall apply to sales or other dispositions after October 9, 1969.“(2) The amendment made by subsection (b) [amending section 1231 of this title] shall apply to taxable years beginning after December 31, 1969.“(3) The amendments made by subsection (c) [enacting section 1253 and amending sections 162 and 1016 of this title] shall apply to transfers after December 31, 1969, except that section 1253(d)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (c) shall, at the election of the taxpayer (made at such time and in such manner as the Secretary or his delegate may by regulations prescribe), apply to transfers before January 1, 1970, but only with respect to payments made in taxable years ending after December 31, 1969, and beginning before January 1, 1980.”
Repeals
Pub. L. 95–600, § 702(c)(9), cited as a credit to this section, and the amendment made thereby, were repealed by Pub. L. 96–223, title IV, § 401(a), 94 Stat. 299, resulting in the text of this section reading as it read prior to enactment of section 702(c)(9). See Effective Date of 1980 Amendment and Revival of Prior Law note set out above.