---
kind: "section"
citation: "26 U.S.C. § 1019"
title: "26"
title_heading: "Internal Revenue Code"
number: "1019"
heading: "Property on which lessee has made improvements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1019"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter O — Gain or Loss on Disposition of Property"
  - "Part II — Basis Rules of General Application"
---

# §1019. Property on which lessee has made improvements


Neither the basis nor the adjusted basis of any portion of real [property](/usc/26/317.md?p=a) shall, in the case of the lessor of such [property](/usc/26/317.md?p=a), be increased or diminished on account of income derived by the lessor in respect of such [property](/usc/26/317.md?p=a) and excludable from gross income under [section 109](/usc/26/109.md) (relating to improvements by lessee on lessor’s [property](/usc/26/317.md?p=a)).


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 301; Pub. L. 113–295, div. A, title II, § 221(a)(76), Dec. 19, 2014, 128 Stat. 4049.)

## Notes

### Editorial Notes

### Amendments

2014—Pub. L. 113–295 struck out last sentence which read as follows: “If an amount representing any part of the value of real property attributable to buildings erected or other improvements made by a lessee in respect of such property was included in gross income of the lessor for any taxable year beginning before January 1, 1942, the basis of each portion of such property shall be properly adjusted for the amount so included in gross income.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2014 Amendment

Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.