PROPERTY ACQUIRED IN TAX-FREE EXCHANGE.

SEC. 44. PROPERTY ACQUIRED IN TAX-FREE EXCHANGE. (a) Basis.—The first sentence of section 1031 (d) (relating to basis of property acquired in certain tax-free exchanges) is amended to read as follows: “If property was acquired on an exchange described in this section, section 1035 (a), or section 1036 (a), then the basis shall be the same as that of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange.” (b) Clerical Amendment.—The second sentence of section 1031 (d) is amended by striking out “paragraph” and inserting in lieu thereof “subsection”.