Pre-1913 Property Appreciation Step-Up

IRC §1053

For property acquired before March 1, 1913, the basis for determining gain is the higher of the adjusted cost basis or the fair market value as of March 1, 1913.

Eligibility

Taxpayers selling property (including corporate stock) held since before March 1, 1913, where the 1913 value exceeds the original cost.

Frequently Asked Questions

Who is eligible for the Pre-1913 Property Appreciation Step-Up?

Taxpayers selling property (including corporate stock) held since before March 1, 1913, where the 1913 value exceeds the original cost.

How does the Pre-1913 Property Appreciation Step-Up work?

For property acquired before March 1, 1913, the basis for determining gain is the higher of the adjusted cost basis or the fair market value as of March 1, 1913.

What law authorizes the Pre-1913 Property Appreciation Step-Up?

The Pre-1913 Property Appreciation Step-Up is authorized under IRC §1053 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §1053

Source: Internal Revenue Code, Title 26, United States Code

§ 1053. Property acquired before March 1, 1913 In the case of property acquired before March 1, 1913, if the basis otherwise determined under this subtitle, adjusted (for the period before March 1, 1913) as provided in section 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; Pub. L. 85–866, title I, § 47, Sept. 2, 1958, 72 Stat. 1642.) Editorial Notes Amendments1958—Pub. L. 85–866 substituted “subtitle” for “part”. Statutory Notes and Related Subsidiaries Effective Date of 1958 AmendmentAmendment by Pub. L. 85–866 applicable to taxable years beginning after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) of Pub. L. 85–866, set out as a note under section 165 of this title.

Legal Sources

US Code (Official) — 26 USC §1053 → Cornell Law Institute — 26 USC §1053 → Search IRS.gov for IRC §1053 → Treasury Regulations (26 CFR) →

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