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TITLE 26-INTERNAL REVENUE CODE code, then for purposes of this subtitle the basis shall be the same as the basis therein pre- scribed in the Internal Revenue Code of 1939. (Aug. 16, 1954, ch. 736, 68A Stat. 310.) REFERENCE IN TEXT Revenue Act of 1932, referred to in the section catchline and subsec. (a), Is act June 6, 1932, ch. 209, 47 Stat. 169. For complete classification of the Act to the Code, see Tables volume. Revenue Act of 1934, referred to in section catchline and subsec. (b). is act May 10, 1934, ch. 277, 48 Stat. 680. For complete classification of this Act to the Code, see Tables volume. The Internal Revenue Code of 1939, referred to In section catchline and subsec. (c), is act Feb. 10, 1939, ch. 2, 53 Stat. 1. as amended. Prior to the enactment of the Internal Revenue Code of 1954, the 1939 Code was classified to former Title 26, Internal Revenue Code. For Table comparisons of the 1939 Code to the 1954 Code, see table I preceding section 1 of this title. Section 113 of the Internal Revenue Code of 1939, referred to in subsec. (c), was classified to section 113 of former Title 26, internal Revenue Code. Section 113 was repealed by section 7851(a)(l)(A) of this title. For table of comparisons of the 1939 Code to the 1954 Code, see Table I preceding section 1 of this title. See, also, section 7851(e) of this title for provision that ref- erences in the 1954 Code to a provision of the 1939 Code, not then applicable, shall be deemed a reference to the corresponding provision of the 1954 Code, which is then applicable. CRoss RErEn CEs Basis of- Property contributed to partnership, see section 723 of this title. Property received in corporate liquidations, see section 334 of this title. Stock and stock rights acquired in corporate distri- butions, see section 307 of this title. Basis to- Corporations in corporate organizations and reor- ganizations, see section 362 of this title. Distributees In corporate organizations and reorga- nizations, see section 350 of this title. Partner of distributed property other than money, see section 732 of this title. Exchapge of property held for productive use or in- vestment, basis, see section 1031 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to In sections 185, 307, 1223 of this title. § 1053. Property acquired before March 1, 1913 In the case of property acquired before March 1, 1913, if the basis otherwise deter- mined under this subtitle, adjusted (for the period before March 1. 1913) as provided in sec- tion 1016, Is less than the fair market value of the property as of March 1, 1913, then the basis for determining gain shall be such fair market value. In determining the fair market value of stock in a corporation as of March 1, 1913, due regard shall be given to the fair market value of the assets of the corporation as of that date. (Aug. 16, 1954, ch, 736, 68A Stat. 311; Sept. 2, 1958, Pub. L. 85-866, title I, § 47, 72 Stat. 1642.) AmENDMENTs 1958-Pub. L. 85-866 substituted "subtitle" for "part". ErECTIVE DATE OF 1958 AMENDMwt Pmendment by Pub. L. 85-866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section I(c) of Pub. L. 85-866, set out as an Effective Date of 1958 Amendment note under section 165 of this title. CROSS REFERENCES Basis- Adjustments to, see section 1016 of this title. Cost, see section 1012 of this title. Distributed property other than money in partner. ships, see section 732 of this title. Distributees in certain corporate organization or reorganization, see section 358 of this title. Exchange not solely in kind, see section 1031 of this title. Gift or transfer in trust after Jan. 1, 1921, see sec- tion 1015 of this title. Gifts after Dec. 31, 1920, see section 1015 of this title. Property acquired after Feb. 28, 1913, see section 1052 of this title, Property acquired from decedent, see section 1014 of this title. Property included In inventory, see section 1013 of this title. Property received In corporate liquidations, see section 334 of this title. Stock and stock right acquired in corporate distri- butions, see jection 307 of this title. Transfer in trust after Dec. 31, 1920, see section 1015 of this title, Fair market value of property received as amount re- alized on gain, see section 1001 of this title. § 1054. Certain stock of Federal National Mortgage Association In the case of a share of stock issued pursu- ant to section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., sec. 1718), the basis of such share in the hands of the Initial holder shall be an amount equal to the capital contributions evidenced by such share reduced by the amount (if any) required by section 162(d) to be treated (with respect to such share) as ordinary and necessary expenses paid or incurred in carrying on a trade or busi- ness. (Added Pub. L. 86-779, § 8(b), Sept. 14, 1960, 74 Stat. 1003.) PRIOR PROVISIONS A prior section 1054, act Aug. 16, 1954, ch. 736, § 1054, 68A Stat. 311, which related to cross references, was renumbered section 1058 of this title. EFncTrvE DATE Section applicable with respect to taxable years be- ginning after Dec. 31, 1959, see section 8(d) of Pub. L. 86-779, set out as an Effective Date of 1960 Amend- ment note under section 162 of this title. § 1055. Redeemable ground rents (a) Character For purposes of this subtitle- (1) a redeemable ground rent shall be treat- ed as being in the nature of a mortgage, and (2) real property held subject to liabilities under a redeemable ground rent shall be treated as held subject to liabilities under a mortgage. (b) Application of subsection (a) (1) In general Subsection (a) shall take effect on the day after the date of the enactment of this sec- tion and shall apply with respect to taxable years ending after such date of enactment. § 1053 Page 656