### Question
How is the term substituted basis property defined?


### Answer
The term **substituted basis property** is defined in *26 U.S.C. § 7701* as the following:

> property which is—


(A) transferred basis property, or


(B) exchanged basis property

#### Citation:
  - *26 U.S.C. § 7701*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

