§126. Certain cost-sharing payments — Inbound Citations
26 U.S.C. § 126
Cited by 5 provisions in release 119-102.
Citations to 26 U.S.C. § 126 as a whole
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(1) Except as otherwise provided in this section, if section 126 property is disposed of, the lower of—(A) the applicable percentage of the aggregate payments, with respect to such property, excluded from gross income under section 126, or(B) the excess of—(i) the amount realized (in the case of a sale, exchange, or involuntary conversion), or the fair market value of such section 126 property (in the case of any other disposition), over(ii) the adjusted basis of such property,shall be treated as ordinary income. Such gain shall be recognized notwithstanding any other provision of this subtitle, except that this section shall not apply to the extent such gain is recognized as ordinary income under any other provision of this part.
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(A) the applicable percentage of the aggregate payments, with respect to such property, excluded from gross income under section 126, or
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(i) the amount realized (in the case of a sale, exchange, or involuntary conversion), or the fair market value of such section 126 property (in the case of any other disposition), over
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(2) For purposes of this section, “section 126 property” means any property acquired, improved, or otherwise modified by the application of payments excluded from gross income under section 126.
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(3) For purposes of this section, if section 126 property is disposed of less than 10 years after the date of receipt of payments excluded from gross income under section 126, the applicable percentage is 100 percent. If section 126 property is disposed of more than 10 years after such date, the applicable percentage is 100 percent reduced (but not below zero) by 10 percent for each year or part thereof in excess of 10 years such property was held after the date of receipt of the payments.