purchase

(A)The term “purchase” means any acquisition, but only if— (i)the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under(but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants), and (ii)the basis of the property in the hands of the person acquiring it is not determined— (I)in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or (II)under section 1014(a) (relating to property acquired from a decedent). (B)A residence which is constructed by the taxpayer shall be treated as purchased by the taxpayer on the date the taxpayer first occupies such residence.

Source

26 USC § 1400C(e)(2)(A)


Scoping language

For purposes of this section
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