N.Y. General City Model 772/66 § 14: Ascertainment of gain or loss

§ 14. Ascertainment of gain or loss. 1. For the purpose of

ascertaining the gain derived or loss sustained from the sale or other

disposition of property, real, personal or mixed, the basis shall be the

cost thereof, or the inventoried value if the inventory is made in

accordance with section seventeen of this part.

2. Notwithstanding subdivision one of this section, with respect to

gain derived from the sale or other disposition of any property acquired

prior to January first, nineteen hundred sixty-six, except stock in

trade of the taxpayer or other property of a kind which would properly

be included in the inventory of the taxpayer if on hand at the close of

the taxable year, or property held by the taxpayer primarily for sale to

customers in the ordinary course of its trade or business, and accounts

or notes receivable acquired in the ordinary course of trade or business

from the sale of such stock in trade or property, or for services

rendered, net income shall not include

(a) That portion of the gain included in determining net income

pursuant to subdivision one of this section with respect to each such

property, which exceeds

(b) The amount of gain that would be included in determining net

income pursuant to subdivision one of this section with respect to each

such property if the basis of such property on the date of sale or other

disposition were equal to its fair market value on January first,

nineteen hundred sixty-six, plus or minus all adjustments to basis made

with respect to each such property in computing net income for periods

on or after January first, nineteen hundred sixty-six;

provided that the total adjustment to net income provided by this

subdivision shall not exceed the amount of the taxpayer's net gain from

the sale or other disposition of all such property, as determined

pursuant to subdivision one of this section.

3. In the case of any bond, with respect to which a deduction for

amortizable bond premium is allowable under subdivision nine of section

twenty-one of this part, the basis for determining gain or loss shall be

reduced by the total amount of such deductions so allowable.