Source: http://taxtv.com/code/00765-USCODE-2011-title26-subtitleA-chap1-subchapP-partIV-sec1254/
Timestamp: 2017-11-20 13:35:41
Document Index: 68827682

Matched Legal Cases: ['§1254', '§1254', '§1254', '§205', '§402', '§5', '§413', '§1004', '§402', '§402', '§402']

IRC §1254. Gain from disposition of interest in oil, gas, geothermal, or other mineral properties - TaxTV.com
IRC §1254. Gain from disposition of interest in oil, gas, geothermal, or other mineral properties
View related content: IRC §1254
If any section 1254 property is disposed of, the lesser of—
(A) the aggregate amount of—
(i) expenditures which have been deducted by the taxpayer or any person under section 263, 616, or 617 with respect to such property and which, but for such deduction, would have been included in the adjusted basis of such property, and
(ii) the deductions for depletion under section 611 which reduced the adjusted basis of such property, or
(I) a sale, exchange, or involuntary conversion, the amount realized, or
(II) in the case of any other disposition, the fair market value of such property, over
(A) In the case of the disposition of a portion of section 1254 property (other than an undivided interest), the entire amount of the aggregate expenditures or deductions described in paragraph (1)(A) with respect to such property shall be treated as allocable to such portion to the extent of the amount of the gain to which paragraph (1) applies.
(B) In the case of the disposition of an undivided interest in a section 1254 property (or a portion thereof), a proportionate part of the expenditures or deductions described in paragraph (1)(A) with respect to such property shall be treated as allocable to such undivided interest to the extent of the amount of the gain to which paragraph (1) applies.
(3) Section 1254 property
The term “section 1254 property” means any property (within the meaning of section 614) if—
(A) any expenditures described in paragraph (1)(A) are properly chargeable to such property, or
(B) the adjusted basis of such property includes adjustments for deductions for depletion under section 611.
(4) Adjustment for amounts included in gross income under section 617(b)(1)(A)
(b) Special rules under regulations
(1) rules similar to the rule of subsection (g) of section 617 and to the rules of subsections (b) and (c) of section 1245 shall be applied for purposes of this section; and
(2) in the case of the sale or exchange of stock in an S corporation, rules similar to the rules of section 7 shall be applied to that portion of the excess of the amount realized over the adjusted basis of the stock which is attributable to expenditures referred to in subsection (a)(1)(A) of this section.
(Added Pub. L. 94–455, title II, §205(a), Oct. 4, 1976, 90 Stat. 1533; amended Pub. L. 95–618, title IV, §402(c)(1)–(3), Nov. 9, 1978, 92 Stat. 3202; Pub. L. 97–354, §5(a)(37), Oct. 19, 1982, 96 Stat. 1696; Pub. L. 99– 4, title IV, §413(a), Oct. 22, 1986, 100 Stat. 2227; Pub. L. 100–647, title I, §1004(c), Nov. 10, 1988, 102 Stat. 3387.)
1988—Subsec. (a)(4). Pub. L. 100–647 added par. (4).
1986—Pub. L. 99– 4 amended section generally, substituting “geothermal, or other mineral properties” for “or geothermal property” in section catchline, revising and restating subsec. (a), pars. (1) to (4) as pars. (1) to (3), and reenacting subsec. (b) without change except for substituting “rule of subsection (g)” for “rules of subsection (g)” in par. (1).
1982—Subsec. (b)(2). Pub. L. 97–354 substituted “an S corporation” for “an electing small business corporation (as defined in section 1371(b))”.
1978—Pub. L. 95–618, §402(c)(3), substituted “oil, gas, or geothermal” for “oil or gas” in section catchline.
Subsec. (a)(1), (2). Pub. L. 95–618, §402(c)(1), substituted “oil, gas, or geothermal property” for “oil or gas property” wherever appearing.
Subsec. (a)(3). Pub. L. 95–618, §402(c)(2), substituted “Oil, gas, or geothermal” for “Oil or gas” in heading and in text substituted “The term ‘oil, gas, or geothermal property’ means” for “The term ‘oil or gas property’ means”.
Section 413(c) of Pub. L. 99– 4 provided that:
Section 205(e) of Pub. L. 94–455 provided that: “The amendments made by this section [enacting this section and amending sections 163, 170, 301, 312, 341, 453, and 7 of this title] shall apply with respect to taxable years ending after December 31, 1975.”