681 



Exchanges in Compliance With Securities and Exchange Commission 



Orders 



26 U.S.C. 1082 



% 1082. Basis for determining gain or loss, 

 (a) Exchanges generally. 



(1) Exchanges subject to the provisions of section 

 1081 (a) or (e). 



If the property was acquired on an exchange 

 subject to the provisions of section 1081 la) or (e) , 

 or the corresponding provisions of prior internal 

 revenue laws, the basis shall be the same as in the 

 case of the property exchanged, decreased in the 

 amount of any money received by the taxpayer, 

 and increased in the amount of gain or decreased 

 m the amount of loss to the taxpayer that was 

 recognized on such exchange under the law appli- 

 cable to the year in which the exchange was 

 made. If the property so acquired consisted in 

 part of the type of property permitted by section 

 1081 (a) to be received without the recognition 

 of gain or loss, and in part of nonexempt prop- 

 erty, the basis provided in this subsection shall be 

 allocated between the properties (other than 

 money) received, and for the purpose of the allo- 

 cation there shall be assigned to such nonexempt 

 property (other than money) an amount equiv- 

 alent to its fair market value at the date of the 

 exchange. This subsection shall not apply to 

 property acquired by a corporation by the issu- 

 ance of its stock or securities as the considera- 

 tion in whole or in part for the transfer of the 

 property to it. 



(2) Exchanges subject to the provisions of section 

 1081(b). 



The gain not recognized on a transfer by reason 

 of section 1081 ib) or the corresponding provisions 

 of prior internal revenue laws shall be applied to 

 reduce the basis for determining gain or loss on 

 sale or exchange of the following categories of 



property in the hands of the transferor immedi- 

 ately after the transfer, and property acquired 

 within 24 months after such transfer by an ex- 

 penditure or investment to which section 1081 (b) 

 relates on account of the acquisition of which 

 gain is not recognized under such subsection, in 

 the following order: 



(A) properly of a character subject to the 

 allowance for depreciation under section 167; 



(B) property (not described in subparagraph 

 (Ai ) with respect to which a deduction for 

 amortization is allowable under section 168, 169, 

 184, 187. 188 or 191; 



* ^ » • • 



The manner and amount of the reduction to be 

 applied to particular property within any of the 

 categories described in subparagraphs (A) to (G), 

 inclusive, shall be determined under regulations 

 prescribed by the Secretary or his delegate. 

 • • . . . 



(Aug 16, 1954, ch. 736, 68A Stat. 315; Dec. 30, 



1969, Pub. L. 91-172, tiUe VII, § 704ibi (3), 83 Stat. 



699.) 



(As amended Dec. 10. 1971. Pub. L 92-178, title III, 



§ 303(c) (5), 85 Stat. 522; Pub. L. 94-455, § 2124(a) 



(3) (C) , Oct. 4, 1976, 90 Stat. 1917.) 



Amendments 



1971 — Subsec. (a) (2) (Bl. Pub. L. 92-178 included refer- 

 ence to section 188. 



1969 — Subsec. (f). Pub. L 91-172 inserted reference to 

 sections 184, 185 and 187 of this title. 



Effective Date of 1971 Amendment 

 Amendment of subsec. (a)i2)(B) of this section by 

 Pub L. 92-178 applicable to taxable years ending after 

 Dec. 31, 1971, see section 303ld) of Pub. L. 92-178, set 

 out as a note under section 188 of this title. 



6. Grants for Public Works and Development Facilities 

 42 U.S.C. 3131-3133; 3135-3136 



Sec. 



3131. Direct and supplementary grants. 



(a) Acquisition or development of public works 



and development facilities: required find- 

 ings precedent to making of direct grants; 

 supplejnentary grants to provide matching 

 share funds. 



(b) Maximum proportion of direct grant funds 



to total project cost. 



(c) Proportion of supplementary grant funds to 



total project cost: rules and regulations; 

 maximum grants: required non-Federal 

 share. 



(d) Rules and regulations: consideration of un- 



employment and underemployment In de- 

 termining rules. 

 • • • • • 



(f) Review and comment upon projects by local 

 governmental authorities. 



3132. Additional grants to areas of substantial unem- 

 ployment during preceding calendar year; an- 

 nual review of eligibility. 



3133 Limitation of funds expended In any one State. 



***** 

 3135 Authorization of appropriations. 



3136. Sewer and other waste disposal facilities; certifi- 



cation by Administrator of the Environmental 

 Protection Agency regarding adequate treatment 

 prior to dlscharee Into streams 



3137. CJonstructlon cost increases. 



§ 3131. Direct and supplementary grants. 



(a) Acquisition or development of public works and 

 development facilities; required findings prece- 

 dent to making of direct grants; supplementary 

 grants to provide matching share funds. 

 Upon the application of any State, or political 



