US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 84

Transfer of appreciated property to political organizations

(a)

General rule

If—
(1)
any person transfers property to a political organization, and
(2)
the fair market value of such property exceeds its adjusted basis,
then for purposes of this chapter the transferor shall be treated as having sold such property to the political organization on the date of the transfer, and the transferor shall be treated as having realized an amount equal to the fair market value of such property on such date.
(b)

Basis of property

In the case of a transfer of property to a political organization to which subsection (a) applies, the basis of such property in the hands of the political organization shall be the same as it would be in the hands of the transferor, increased by the amount of gain recognized to the transferor by reason of such transfer.

(c)

Political organization defined

For purposes of this section, the term “political organization” has the meaning given to such term by section 527(e)(1).

Pub. L. 93–625, § 13(a)(1)88 Stat. 2120Pub. L. 115–141, div. U, title IV, § 401(a)(35)132 Stat. 1186(Added , , ; amended , , .)

Editorial Notes

Amendments

Pub. L. 115–1412018— substituted “political organizations” for “political organization” in section catchline.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 93–625, § 13(b)88 Stat. 2121

“The amendments made by subsection (a) [enacting this section] shall apply to transfers made after , in taxable years ending after such date.”
, , , provided that:

Nonrecognition of Gain or Loss Where Organization Sold Contributed Property Before

Pub. L. 93–625, § 13(c)88 Stat. 2121, , , provided that in the case of the sale or exchange of property before , which was acquired by the exempt political organization by contribution, no gain or loss shall be recognized by such organization.