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TITLE 26-INTERNAL REVENUE CODE tion and amending section 1250 of this title] shall apply to approved dispositions of qualified housing projects (within the meaning of section 1039 of the In- ternal Revenue Code of 1954 as added by subsection (a) [subsec. (a) of this section]) after October 9, 1969." SECTION REmRED TO IN OTHER SECTIONS This section is referred to in section 1250 of this title. § 1040. Use of certain appreciated carryover basis property to satisfy pecuniary request' (a) General rule If the executor of the estate of any decedent satisfies the right of any person to receive a pe- cuniary bequest with appreciated carryover basis property (as defined in section 1023(f)(5)), then gain on such exchange shall be recognized to the estate only to the extent that, on the date of such exchange, the fair market value of such property exceeds the value of such proper- ty for purposes of chapter 11. (b) Similar rule for certain trusts To the extent provided in regulations pre- scribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where- (1) by reason of the death of the decedent, a person has a right to receive from a trust a specific dollar amount which is the equivalent of a pecuniary bequest, and (2) the trustee of the trust satisfies such right with carryover basis property to which section 1023 applies. (c) Basis of property acquired in exchange described in subsection (a) or (b) The basis of property acquired in an ex- change with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immedi- ately before the exchange, increased by the amount of the gain recognized to the estate or trust on the exchange. (Added Pub. L. 94-455, title XX, § 2005(b), Oct. 4, 1976, 90 Stat. 1877.) EFFECtIVE DATE Section applicable in respect of decedents dying after Dec. 31, 1976, see section 2005(f)(1) of Pub. L. 94- 455, set out as an Effective Date note under section 1023 of this title. PART IV-SPECIAL RULES Sec. 1051. Property acquired during affiliation. 1052. Basis established by the Revenue Act of 1932 or 1934 or by the Internal Revenue Code of 1939. 1053, Property acquired before March 1, 1913. 1054. Certain stock of Federal National Mortgage As- sociation. 1055. Redeemable ground rents. 1056. Basis limitation for player contracts transferred In connection with the the sale of a franchise. 1057. Election to treat transfer to foreign trust, etc., as taxable exchange. 1058. Cross references. AMENDMENTS 1976-Pub. L. 94-455, title II, § 212(a)(2), title X, 1015(c), Oct. 4, 1976, 90 Stat. 1546, 161, added items 1056 and 1057 and renumbered former item 1056 as 1058. 'So in original. Probably should be "bequest". 1963-Pub. L. 88-9, § ld), Apr. 10, 1963, 77 Stat. 8, added item 1055 and renumbered former item 1055 as 1056. 1960-Pub. L. 86-779, § 8(c), Sept. 14, 1960, 74 Stat. 1003, renumbered former item 1054 as 1055 and added new item 1054. § 1051. Property acquired during affiliation In the case of property acquired by a corpora- tion, during a period of affiliation, from a cor- poration with which it was affiliated, the basis of such property, after such period of affili- ation, shall be determined, in accordance with regulations prescribed by the Secretary, with- out regard to inter-company transactions in re- spect of which gain or loss was not recognized. For purposes of this section, the term "period of affiliation" means the period during which such corporations were affiliated (determined in accordance with the law applicable thereto) but does not include any taxable year begin- ning on or after January 1, 1922, unless a con- solidated return was made, nor any taxable year after the taxable year 1928. (Aug. 16, 1954, ch. 736, 68A Stat. 310; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(a)(131), 1906(b)(13)(A), 90 Stat. 1786, 1834.) AMENDMENTS 1976-Pub. L. 94-455, §§ 1901(a)(131), 1901(b)(13)(A), struck out provisions relating to the basis and adjust- ment of the basis of corporate property where a con- solidated return was filed, and "or his delegate" fol- lowing "Secretary". EFFEcTivE DATE OF 1976 AMENDMENT Amendment by section 1901(a)(131) of Pub. L. 94- 455 effective for taxable years beginning after Dec, 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under sec- tion 2 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 617 of this title. § 1052. Basis established by the Revenue Act of 1932 or 1934 or by the Internal Revenue Code of 1939 (a) Revenue Act of 1932 If the property was acquired, after February 28, 1913, in any taxable year beginning before January 1, 1934, and the basis thereof, for pur- poses of the Revenue Act of 1932 was pre- scribed by section 113(a)(6), (7), or (9) of such Act (47 Stat. 199), then for purposes of this sub- title the basis shall be the same as the basis therein prescribed in the Revenue Act of 1932. (b) Revenue Act of 1934 If the property was acquired, after February 28, 1913, in any taxable year beginning before January 1, 1936, and the basis thereof, for pur- poses of the Revenue Act of 1934, was pre- scribed by section 113(a)(6), (7), or (8) of such Act (48 Stat. 706), then for purposes of this sub- title the basis shall be the same as the basis therein prescribed in the Revenue Act of 1934. (c) Internal Revenue Code of 1939 If the property was acquired, after February 28, 1913, in a transaction to which the Internal Revenue Code of 1939 applied, and the basis thereof, for purposes of the Internal Revenue Code of 1939, was prescribed by section 113(a) (6), (7), (8), (13), (15), (18), (19), or (23) of such Page 655 § 1052