24961. In the case of the property acquired by a corporation,
during a period of affiliation, from a corporation with which it was
affiliated, the basis of such property, after such period of
affiliation, shall be determined, in accordance with regulations
prescribed by the Franchise Tax Board without regard to intercompany
transactions in respect of which gain or loss was not recognized. The
basis in case of property acquired by a corporation during any
period, in the income year 1929 or any subsequent income year, in
respect of which a consolidated return is made by such corporation
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or in the case of a
corporation subject to the tax imposed by Chapter 3, the Federal
Revenue Act of 1938, shall be determined in accordance with
regulations prescribed under Article 9 of Chapter 2 or Section 141 of
the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932
or the Federal Revenue Act of 1936, or in the case of a corporation
subject to the tax imposed by Chapter 3, the Federal Revenue Act of
1938. The basis in the case of property held by a corporation during
any period, in the income year 1929 or any subsequent income year, in
respect of which a consolidated return is made by such corporation
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or, in the case of a
corporation subject to the tax imposed by Chapter 3, or the Federal
Revenue Act of 1938, shall be adjusted in respect of any items
relating to such period, in accordance with regulations prescribed
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or in the case of a
corporation subject to the tax imposed by Chapter 3, or the Federal
Revenue Act of 1938, applicable to such period.
24962. (a) If the property was acquired, after February 28, 1913,
in any income year beginning before January 1, 1934, and the basis
thereof, for purposes of the Revenue Act of 1932 was prescribed by
Section 113(a) (6), (7), or (9) of such act (47 Stat. 199), then for
purposes of this part the basis shall be the same as the basis
therein prescribed in the Revenue Act of 1932.
(b) If the property was acquired, after February 28, 1913, in any
income year beginning before January 1, 1937, and the basis thereof,
for purposes of the Revenue Act of 1934, was prescribed by Section
113(a) (6), (7), or (8) of such act (48 Stat. 706), then for purposes
of this part the basis shall be the same as the basis therein
prescribed in the Revenue Act of 1934.
(c) If the property was acquired after February 28, 1913, in a
transaction to which the Bank and Corporation Tax Law of 1954
applied, and the basis thereof, for purposes of the Bank and
Corporation Tax Law of 1954, was prescribed by Section 25071(d),
25071(e), or 25071(f) of such law, then for purposes of this part the
basis shall be the same as the basis therein prescribed in the Bank
and Corporation Tax Law of 1954.
(d) Stock rights acquired after February 28, 1913, and before
January 1, 1955, shall have the basis assigned to such property under
Section 25071m of the Bank and Corporation Tax Law of 1954.
24963. In the case of property acquired before March 1, 1913, if
the basis otherwise determined under this part, adjusted (for the
period before March 1, 1913) as provided in Section 24916, 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.
24964. Whenever a taxpayer has realized gain or loss upon the
receipt after January 1, 1928, at a time when it was subject to a tax
under this part, of all or substantially all of the business or
property of a taxpayer over which it exercised control within the
meaning of Section 24564, and such gain or loss actually was not
taken into account in the computation of taxes imposed by this part,
the basis of the property or business acquired shall be the same as
it was in the hands of the transferor.
24965. In the case of a share of stock issued pursuant to Section
303(c) of the Federal National Mortgage Association Charter Act (12
U.S.C., Sec. 1718), the basis of such share in the hands of the
initial holder shall be an amount equal to the capital contributions
evidenced by such share reduced by the amount (if any) required by
Section 24343(d) to be treated (with respect to such share) as
ordinary and necessary expenses paid or incurred in carrying on a
trade or business.
24966. (a) The basis in stock purchased shall be reduced by the
nontaxed portion of any extraordinary dividend received as provided
in Section 1059 of the Internal Revenue Code, except as otherwise
provided in this section.
(b) The reduction described in Section 1059(b)(2)(B) of the
Internal Revenue Code shall be the amount determined under Section
24402.
(c) Reference to Section 301 of the Internal Revenue Code shall be
reference to Sections 24451 to 24454, inclusive.
(d) Reference to Section 301(b)(2) of the Internal Revenue Code
shall be reference to subdivision (b) of Section 24452.
(e) Reference to Section 301(c)(2) of the Internal Revenue Code
shall be reference to subdivision (b) of Section 24453.
24966.1. Section 1059A of the Internal Revenue Code, relating to
limitation on taxpayer's basis or inventory cost in property imported
from related persons, shall apply, except as otherwise provided.
24966.2. Section 1060 of the Internal Revenue Code, relating to
special allocation rules for certain asset acquisitions, shall apply,
except as otherwise provided.
24989. Section 1056 of the Internal Revenue Code, relating to basis
limitation for player contracts transferred in connection with the
sale of a franchise, shall apply, except as otherwise provided.
24961. In the case of the property acquired by a corporation,
during a period of affiliation, from a corporation with which it was
affiliated, the basis of such property, after such period of
affiliation, shall be determined, in accordance with regulations
prescribed by the Franchise Tax Board without regard to intercompany
transactions in respect of which gain or loss was not recognized. The
basis in case of property acquired by a corporation during any
period, in the income year 1929 or any subsequent income year, in
respect of which a consolidated return is made by such corporation
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or in the case of a
corporation subject to the tax imposed by Chapter 3, the Federal
Revenue Act of 1938, shall be determined in accordance with
regulations prescribed under Article 9 of Chapter 2 or Section 141 of
the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932
or the Federal Revenue Act of 1936, or in the case of a corporation
subject to the tax imposed by Chapter 3, the Federal Revenue Act of
1938. The basis in the case of property held by a corporation during
any period, in the income year 1929 or any subsequent income year, in
respect of which a consolidated return is made by such corporation
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or, in the case of a
corporation subject to the tax imposed by Chapter 3, or the Federal
Revenue Act of 1938, shall be adjusted in respect of any items
relating to such period, in accordance with regulations prescribed
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or in the case of a
corporation subject to the tax imposed by Chapter 3, or the Federal
Revenue Act of 1938, applicable to such period.
24962. (a) If the property was acquired, after February 28, 1913,
in any income year beginning before January 1, 1934, and the basis
thereof, for purposes of the Revenue Act of 1932 was prescribed by
Section 113(a) (6), (7), or (9) of such act (47 Stat. 199), then for
purposes of this part the basis shall be the same as the basis
therein prescribed in the Revenue Act of 1932.
(b) If the property was acquired, after February 28, 1913, in any
income year beginning before January 1, 1937, and the basis thereof,
for purposes of the Revenue Act of 1934, was prescribed by Section
113(a) (6), (7), or (8) of such act (48 Stat. 706), then for purposes
of this part the basis shall be the same as the basis therein
prescribed in the Revenue Act of 1934.
(c) If the property was acquired after February 28, 1913, in a
transaction to which the Bank and Corporation Tax Law of 1954
applied, and the basis thereof, for purposes of the Bank and
Corporation Tax Law of 1954, was prescribed by Section 25071(d),
25071(e), or 25071(f) of such law, then for purposes of this part the
basis shall be the same as the basis therein prescribed in the Bank
and Corporation Tax Law of 1954.
(d) Stock rights acquired after February 28, 1913, and before
January 1, 1955, shall have the basis assigned to such property under
Section 25071m of the Bank and Corporation Tax Law of 1954.
24963. In the case of property acquired before March 1, 1913, if
the basis otherwise determined under this part, adjusted (for the
period before March 1, 1913) as provided in Section 24916, 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.
24964. Whenever a taxpayer has realized gain or loss upon the
receipt after January 1, 1928, at a time when it was subject to a tax
under this part, of all or substantially all of the business or
property of a taxpayer over which it exercised control within the
meaning of Section 24564, and such gain or loss actually was not
taken into account in the computation of taxes imposed by this part,
the basis of the property or business acquired shall be the same as
it was in the hands of the transferor.
24965. In the case of a share of stock issued pursuant to Section
303(c) of the Federal National Mortgage Association Charter Act (12
U.S.C., Sec. 1718), the basis of such share in the hands of the
initial holder shall be an amount equal to the capital contributions
evidenced by such share reduced by the amount (if any) required by
Section 24343(d) to be treated (with respect to such share) as
ordinary and necessary expenses paid or incurred in carrying on a
trade or business.
24966. (a) The basis in stock purchased shall be reduced by the
nontaxed portion of any extraordinary dividend received as provided
in Section 1059 of the Internal Revenue Code, except as otherwise
provided in this section.
(b) The reduction described in Section 1059(b)(2)(B) of the
Internal Revenue Code shall be the amount determined under Section
24402.
(c) Reference to Section 301 of the Internal Revenue Code shall be
reference to Sections 24451 to 24454, inclusive.
(d) Reference to Section 301(b)(2) of the Internal Revenue Code
shall be reference to subdivision (b) of Section 24452.
(e) Reference to Section 301(c)(2) of the Internal Revenue Code
shall be reference to subdivision (b) of Section 24453.
24966.1. Section 1059A of the Internal Revenue Code, relating to
limitation on taxpayer's basis or inventory cost in property imported
from related persons, shall apply, except as otherwise provided.
24966.2. Section 1060 of the Internal Revenue Code, relating to
special allocation rules for certain asset acquisitions, shall apply,
except as otherwise provided.
24989. Section 1056 of the Internal Revenue Code, relating to basis
limitation for player contracts transferred in connection with the
sale of a franchise, shall apply, except as otherwise provided.
24961. In the case of the property acquired by a corporation,
during a period of affiliation, from a corporation with which it was
affiliated, the basis of such property, after such period of
affiliation, shall be determined, in accordance with regulations
prescribed by the Franchise Tax Board without regard to intercompany
transactions in respect of which gain or loss was not recognized. The
basis in case of property acquired by a corporation during any
period, in the income year 1929 or any subsequent income year, in
respect of which a consolidated return is made by such corporation
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or in the case of a
corporation subject to the tax imposed by Chapter 3, the Federal
Revenue Act of 1938, shall be determined in accordance with
regulations prescribed under Article 9 of Chapter 2 or Section 141 of
the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932
or the Federal Revenue Act of 1936, or in the case of a corporation
subject to the tax imposed by Chapter 3, the Federal Revenue Act of
1938. The basis in the case of property held by a corporation during
any period, in the income year 1929 or any subsequent income year, in
respect of which a consolidated return is made by such corporation
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or, in the case of a
corporation subject to the tax imposed by Chapter 3, or the Federal
Revenue Act of 1938, shall be adjusted in respect of any items
relating to such period, in accordance with regulations prescribed
under Article 9 of Chapter 2 or Section 141 of the Federal Revenue
Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue
Act of 1934 or the Federal Revenue Act of 1936, or in the case of a
corporation subject to the tax imposed by Chapter 3, or the Federal
Revenue Act of 1938, applicable to such period.
24962. (a) If the property was acquired, after February 28, 1913,
in any income year beginning before January 1, 1934, and the basis
thereof, for purposes of the Revenue Act of 1932 was prescribed by
Section 113(a) (6), (7), or (9) of such act (47 Stat. 199), then for
purposes of this part the basis shall be the same as the basis
therein prescribed in the Revenue Act of 1932.
(b) If the property was acquired, after February 28, 1913, in any
income year beginning before January 1, 1937, and the basis thereof,
for purposes of the Revenue Act of 1934, was prescribed by Section
113(a) (6), (7), or (8) of such act (48 Stat. 706), then for purposes
of this part the basis shall be the same as the basis therein
prescribed in the Revenue Act of 1934.
(c) If the property was acquired after February 28, 1913, in a
transaction to which the Bank and Corporation Tax Law of 1954
applied, and the basis thereof, for purposes of the Bank and
Corporation Tax Law of 1954, was prescribed by Section 25071(d),
25071(e), or 25071(f) of such law, then for purposes of this part the
basis shall be the same as the basis therein prescribed in the Bank
and Corporation Tax Law of 1954.
(d) Stock rights acquired after February 28, 1913, and before
January 1, 1955, shall have the basis assigned to such property under
Section 25071m of the Bank and Corporation Tax Law of 1954.
24963. In the case of property acquired before March 1, 1913, if
the basis otherwise determined under this part, adjusted (for the
period before March 1, 1913) as provided in Section 24916, 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.
24964. Whenever a taxpayer has realized gain or loss upon the
receipt after January 1, 1928, at a time when it was subject to a tax
under this part, of all or substantially all of the business or
property of a taxpayer over which it exercised control within the
meaning of Section 24564, and such gain or loss actually was not
taken into account in the computation of taxes imposed by this part,
the basis of the property or business acquired shall be the same as
it was in the hands of the transferor.
24965. In the case of a share of stock issued pursuant to Section
303(c) of the Federal National Mortgage Association Charter Act (12
U.S.C., Sec. 1718), the basis of such share in the hands of the
initial holder shall be an amount equal to the capital contributions
evidenced by such share reduced by the amount (if any) required by
Section 24343(d) to be treated (with respect to such share) as
ordinary and necessary expenses paid or incurred in carrying on a
trade or business.
24966. (a) The basis in stock purchased shall be reduced by the
nontaxed portion of any extraordinary dividend received as provided
in Section 1059 of the Internal Revenue Code, except as otherwise
provided in this section.
(b) The reduction described in Section 1059(b)(2)(B) of the
Internal Revenue Code shall be the amount determined under Section
24402.
(c) Reference to Section 301 of the Internal Revenue Code shall be
reference to Sections 24451 to 24454, inclusive.
(d) Reference to Section 301(b)(2) of the Internal Revenue Code
shall be reference to subdivision (b) of Section 24452.
(e) Reference to Section 301(c)(2) of the Internal Revenue Code
shall be reference to subdivision (b) of Section 24453.
24966.1. Section 1059A of the Internal Revenue Code, relating to
limitation on taxpayer's basis or inventory cost in property imported
from related persons, shall apply, except as otherwise provided.
24966.2. Section 1060 of the Internal Revenue Code, relating to
special allocation rules for certain asset acquisitions, shall apply,
except as otherwise provided.
24989. Section 1056 of the Internal Revenue Code, relating to basis
limitation for player contracts transferred in connection with the
sale of a franchise, shall apply, except as otherwise provided.
