---
kind: "section"
citation: "26 U.S.C. § 1021"
title: "26"
title_heading: "Internal Revenue Code"
number: "1021"
heading: "Sale of annuities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1021"
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"
---

# §1021. Sale of annuities


In case of the sale of an [annuity contract](/usc/26/414.md?p=z-4-B), the adjusted basis shall in no case be less than zero.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 302.)