### Question
How does the law define applicable disposition?


### Answer
Under *26 U.S.C. § 170*, **applicable disposition** is defined as:

> any sale, exchange, or other disposition by the donee of applicable property—



(i) after the last day of the taxable year of the donor in which such property was contributed, and



(ii) before the last day of the 3-year period beginning on the date of the contribution of such property,


  

unless the donee makes a certification in accordance with subparagraph (D)

#### Citation:
  - *26 U.S.C. § 170*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

