Certain term interests
(1) In general
(1)In general#
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.
(2)Term interest in property defined#
For purposes of paragraph (1), the term “term interest in property” means—
(A) a life interest in property,
(B) an interest in property for a term of years, or
(C) an income interest in a trust.
(2)(A)#
a life interest in property,
(2)(B)#
an interest in property for a term of years, or
(2)(C)#
an income interest in a trust.
(3)Exception#
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.