26 CFR § 1.1055-4 - Basis of redeemable ground rent reserved or created in connection with transfers of real property before April 11, 1963.

---
identifier: "/us/cfr/t26/s1.1055-4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.1055-4 - Basis of redeemable ground rent reserved or created in connection with transfers of real property before April 11, 1963."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.1055-4"
section_name: "Basis of redeemable ground rent reserved or created in connection with transfers of real property before April 11, 1963."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---


# 1.1055-4 Basis of redeemable ground rent reserved or created in connection with transfers of real property before April 11, 1963.

(a) *In general.* In the case of a redeemable ground rent created or reserved in connection with a transfer, occurring before April 11, 1963, of the right to hold real property subject to liabilities under such ground rent, the basis of such ground rent on or after April 11, 1963, in the hands of the person who reserved or created the ground rent is the amount which was taken into account in respect of such ground rent in computing the amount realized from the transfer of such real property. Thus, if no such amount was taken into account, such basis shall be determined without regard to section 1055. (See section 1055(b)(3).)

(b) The provisions of this section may be illustrated by the following examples:

[T.D. 6821, 30 FR 6217, May 4, 1965]