Property acquired from the decedent
For purposes of subsection (a), the following property shall be considered to have been acquired from or to have passed from the decedent:
(1)#
Property acquired by bequest, devise, or inheritance, or by the decedent’s estate from the decedent;
(2)#
Property transferred by the decedent during his lifetime in trust to pay the income for life to or on the order or direction of the decedent, with the right reserved to the decedent at all times before his death to revoke the trust;
(3)#
In the case of decedents dying after December 31, 1951 , property transferred by the decedent during his lifetime in trust to pay the income for life to or on the order or direction of the decedent with the right reserved to the decedent at all times before his death to make any change in the enjoyment thereof through the exercise of a power to alter, amend, or terminate the trust;
(4)#
Property passing without full and adequate consideration under a general power of appointment exercised by the decedent by will;
(5)#
In the case of decedents dying after August 26, 1937 , and before January 1, 2005 , property acquired by bequest, devise, or inheritance or by the decedent’s estate from the decedent, if the property consists of stock or securities of a foreign corporation, which with respect to its taxable year next preceding the date of the decedent’s death was, under the law applicable to such year, a foreign personal holding company. In such case, the basis shall be the fair market value of such property at the date of the decedent’s death or the basis in the hands of the decedent, whichever is lower;
(6)#
In the case of decedents dying after December 31, 1947 , property which represents the surviving spouse’s one-half share of community property held by the decedent and the surviving spouse under the community property laws of any State, or possession of the United States or any foreign country, if at least one-half of the whole of the community interest in such property was includible in determining the value of the decedent’s gross estate under chapter 11 of subtitle B (section 2001 and following, relating to estate tax) or section 811 of the Internal Revenue Code of 1939;
(7)#
, (8) Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(74)(B) , Dec. 19, 2014 , 128 Stat. 4049 ]
(9)#
In the case of decedents dying after December 31, 1953 , property acquired from the decedent by reason of death, form of ownership, or other conditions (including property acquired through the exercise or non-exercise of a power of appointment), if by reason thereof the property is required to be included in determining the value of the decedent’s gross estate under chapter 11 of subtitle B or under the Internal Revenue Code of 1939. In such case, if the property is acquired before the death of the decedent, the basis shall be the amount determined under subsection (a) reduced by the amount allowed to the taxpayer as deductions in computing taxable income under this subtitle or prior income tax laws for exhaustion, wear and tear, obsolescence, amortization, and depletion on such property before the death of the decedent. Such basis shall be applicable to the property commencing on the death of the decedent. This paragraph shall not apply to—
(A) annuities described in section 72;
(B) property to which paragraph (5) would apply if the property had been acquired by bequest; and
(C) property described in any other paragraph of this subsection.
(9)(A)#
annuities described in section 72;
(9)(B)#
property to which paragraph (5) would apply if the property had been acquired by bequest; and
(10)#
Property includible in the gross estate of the decedent under section 2044 (relating to certain property for which marital deduction was previously allowed). In any such case, the last 3 sentences of paragraph (9) shall apply as if such property were described in the first sentence of paragraph (9).