Substituted Basis

Substituted Basis means:
property that has either an exchanged basis or a transferred basis. Exchanged basis is an amount determined by the basis of other property held by the owner. Transferred basis is an amount determined by the basis of other property in the hands of the donor, grantor, or other transferor of the property in question. Transferred basis and exchanged basis are sometimes referred to as carryover basis. Former IRC (check if this IRC provision is current here) §7701(a)(42).