Ala. Admin. Code r. 810-3-6-.06 - Basis Of Property Acquired Upon Like-Kind Exchange
(1) After December 31, 1984: The basis of
property acquired in a like-kind exchange shall be determined according to
26 U.S. C. §
1031. For interpretation of federal statutes
adopted by the Alabama Legislature see Rule 810-3-1.1 -.01, Operating
Rules.
(2) Prior to January 1,
1985: The basis of property acquired in a like-kind exchange is the same as
that of the property exchanged less the amount of money and the fair market
value of other property received, less any loss (or plus any gain) recognized
on the exchange.
(a) Corporate Stock. This
rule does not apply in case of property received by a corporation in whole or
in part in exchange for the stock or securities of that corporation.
(b) Mixed Exchanges. If the property acquired
consisted of both like and unlike property, the basis shall be allocated
between the properties (other than money) received, and for the purpose of
allocation there shall be assigned to the unlike property an amount equal to
its fair market value at the date of the exchange.
Authors: Lloyd B. Byrd, Judy A. Robbins
Notes
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-18-6.
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