1. (1) The basis of property shall be the cost of the property with the following exceptions:

   1. (a) Inventory - If the property should have been included in the last inventory, the basis shall be the amount used in the last inventory.
   2. (b) Gifts or Transfer in Trust - See Rule 810-3-6-.04.
   3. (c) Property Transmitted at Death - See Rule 810-3-6-.05.
   4. (d) Property Acquired Upon Like-Kind Exchange - See Rule 810-3-6-.06.
   5. (e) Transfers to a Corporation - See Rule 810-3-6-.07.
   6. (f) Property Acquired on Liquidation of a Subsidiary - See Rule 810-3-6-.08.
   7. (g) Basis of Property of Subsidiary After Acquisition - See Rule 810-3-6-.09.
   8. (h) Basis of Property Received in Liquidation in which a Gain or Loss was Recognized - See Rule 810-3-6-.10.
   9. (i) Basis of Stock after a Stock Dividend - See Rule 810-3-6-.11.
   10. (j) Involuntary Conversion - See Rule 810-3-6-.12.
   11. (k) Property Acquired Before January 1, 1933 - See Rule 810-3-6-.13.
   12. (l) Property Acquired from a Spouse or Former Spouse - See Rule 810-3-6-.14.
   13. (m) Basis of Replacement Property in Sale of Stock to ESOP or Cooperative - See Rule 810-3-6-.15.
   14. (n) Basis of Property to Subchapter K Entity - See Rule 810-3-6-.03.
   15. (o) Basis of Interest in a Subchapter K Entity - See Rule 810-3-6-.03.
   16. (p) Basis of Property Distributed by a Subchapter K Entity - See Rule 810-3-6-.03.
   17. (q) Basis of Property - Individuals Establishing Alabama Domicile - See Rule 810-3-6-.16.
   18. (r) Allocation of Basis - See Rule 810-3-6-.17.

Author: Ed Cutter, CPA

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5), 40-18-6.

History: Amended: June 17, 1988; filed July 27, 1988. Amended: Filed September 18, 1996;effective October 23, 1996. Repealed and New Rule: Filed April 28, 1999; effective June2, 1999.