26 U.S. Code § 84 - Transfer of appreciated property to political organization
(a) General rule
then for purposes of this chapter the transferor shall be treated as having sold such property to the political organization on the date of the transfer, and the transferor shall be treated as having realized an amount equal to the fair market value of such property on such date.
(b) Basis of property
In the case of a transfer of property to a political organization to which subsection (a) applies, the basis of such property in the hands of the political organization shall be the same as it would be in the hands of the transferor, increased by the amount of gain recognized to the transferor by reason of such transfer.
Source(Added Pub. L. 93–625, § 13(a)(1),Jan. 3, 1975, 88 Stat. 2120.)
Pub. L. 93–625, § 13(b),Jan. 3, 1975, 88 Stat. 2121, provided that: “The amendments made by subsection (a) [enacting this section] shall apply to transfers made after May 7, 1974, in taxable years ending after such date.”
Nonrecognition of Gain or Loss Where Organization Sold Contributed Property Before August 2, 1973