The particular properties to which the reductions required by this paragraph shall be allocated shall be determined under regulations prescribed by the Secretary. The excess (if any) of the amount of such contribution over the amount of the reduction under the preceding sentence shall be applied to the reduction (as of the last day of the period specified in the preceding sentence) of the basis of any other property held by the taxpayer. Then the basis of any property acquired with such money during the 12-month period beginning on the day the contribution is received shall be reduced by the amount of such contribution. (A) is received by a corporation as a contribution to capital, and Notwithstanding subsection (a)(2), if money. Then the basis of such property shall be zero. (B) is not contributed by a shareholder as such, (A) is acquired by a corporation as a contribution to capital, and Notwithstanding subsection (a)(2), if property other than money. (c) Special rule for certain contributions to capital (1) Property other than money This subsection shall not apply if the property acquired consists of stock or securities in a corporation a party to the reorganization, unless acquired by the exchange of stock or securities of the transferee (or of a corporation which is in control of the transferee) as the consideration in whole or in part for the transfer. If property was acquired by a corporation in connection with a reorganization to which this part applies, then the basis shall be the same as it would be in the hands of the transferor, increased in the amount of gain recognized to the transferor on such transfer.

Then the basis shall be the same as it would be in the hands of the transferor, increased in the amount of gain recognized to the transferor on such transfer. (2) as paid-in surplus or as a contribution to capital, (1) in connection with a transaction to which section 351 (relating to transfer of property to corporation controlled by transferor) applies, or If property was acquired by a corporation. Basis to corporations (a) Property acquired by issuance of stock or as paid-in surplus Jump To: Source Credit Amendments Effective Date В§362.

Irc 362