540 
INCOME TAXES 
Property other (7) If the property (other than stock or securities 
jired by sameill a corporation a party to the reorganization) was ac- 
orporation after quired after December 31, 1917, by a corporation in con- 
nection with a reorganization, and immediately after the 
transfer an interest or control in such property of 80 
per centum or more remained in the same persons or any 
of them, then the basis shall be the same as it would be 
in the hands of the transferor, increased in the amount 
of gain or decreased in the amount of loss recognized to 
the transferor upon such transfer under the law appli- 
cable to the year in which the transfer was made; 
Acquired after (8) If the property (other than stock or securities 
hee, 51, 1920, ou in a corporation a party to a reorganization) was ac- 
or ty quired after December 31, 1920, by a corporation by the 
till in control. jgsuance of its stock or securities in connection with a 
transaction described in paragraph (4) of subdivision 
(b) of section 203 (including, also, cases where part of 
the consideration for the transfer of such property to 
‘he corporation was property or money in addition to 
such stock or securities), then the basis shall be the same 
as it would be in the hands of the transferor, increased 
in the amount of gain or decreased in the amount of loss 
recognized to the transferor upon such transfer under 
the law applicable to the year in which the transfer was 
made ; 
Stock, ete, dis- (9) If the property consists of stock or securities dis- 
iributed on reer tributed after December 31,1923, to a taxpayer in con- 
Dec. 31, 1928. nection with a transaction described in subdivision (c) of 
section 203, the basis in the case of the stock in respect 
of which the distribution was made shall be apportioned, 
under rules and regulations prescribed by the Commis- 
sioner with the approval of the Secretary, between such 
stock and the stock or securities distributed; 
(10) If the property was acquired as the result of a 
ompulsory or involuntary conversion described in para- 
oraph (5) of subdivision (b) of section 203, the basis 
shall be the same as in the case of the property so con- 
verted, decreased in the amount of any money received 
by the taxpayer which was not expended in accordance 
with the provisions of law (applicable to the year in 
which such conversion was made) determining the tax- 
able status of the gain or loss upon such conversion, and 
increased in the amount of gain or decreased in the 
amount of loss to the taxpayer recognized upon such 
~onversion under the law applicable to the year in which 
such conversion was made; 
Acquired for (11) If substantially identical property was acquired 
ola” dis after December 31, 1920, in place of stock or securities 
oe sowed. which were sold or disposed of and in respect of which 
loss was not allowed as a deduction under paragraph (5) 
of subdivision (a) of section 214 or paragraph (4) of 
subdivision (a) of section 234 of this act, the Revenue 
Act of 1921. or the Revenue Act of 1924, the basis in