26 USC § 1019 - Property on which lessee has made improvements

---
identifier: "/us/usc/t26/s1019"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1019 - Property on which lessee has made improvements"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1019"
section_name: "Property on which lessee has made improvements"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "O"
subchapter_name: "Gain or Loss on Disposition of Property"
part_number: "II"
part_name: "BASIS RULES OF GENERAL APPLICATION"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 301; Pub. L. 113–295, div. A, title II, § 221(a)(76), Dec. 19, 2014, 128 Stat. 4049.)"
---


# § 1019. Property on which lessee has made improvements

Neither the basis nor the adjusted basis of any portion of real property shall, in the case of the lessor of such property, be increased or diminished on account of income derived by the lessor in respect of such property and excludable from gross income under section 109 (relating to improvements by lessee on lessor’s property).

---

**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 301; Pub. L. 113–295, div. A, title II, § 221(a)(76), Dec. 19, 2014, 128 Stat. 4049.)

## Editorial Notes

### Amendments

2014— struck out last sentence which read as follows: “If an amount representing any part of the value of real property attributable to buildings erected or other improvements made by a lessee in respect of such property was included in gross income of the lessor for any taxable year beginning before , the basis of each portion of such property shall be properly adjusted for the amount so included in gross income.”

## Statutory Notes and Related Subsidiaries

### Effective Date of 2014 Amendment

Amendment by  effective , subject to a savings provision, see , set out as a note under .