### Question
How does Income Taxes define purchase?


### Answer
Under *26 U.S.C. § 355*, **purchase** is defined as:

> any acquisition but only if—



(i) the basis of the property acquired in the hands of the acquirer is not determined (I) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or (II) under section 1014(a), and



(ii) the property is not acquired in an exchange to which section 351, 354, 355, or 356 applies

#### Citation:
  - *26 U.S.C. § 355*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART III-CORPORATE ORGANIZATIONS AND REORGANIZATIONS > Subpart B-Effects on Shareholders and Security Holders**

