Valuation Date for Tax Purposes

The date used to establish the value of property, for capital gains calculations, for property first acquired prior to December 31st 1971. For example, a property first acquired in 1960 for $5, 000, valued at $12, 000 on December 31st 1971, and subsequently sold for $100, 000, would be subject to capital gains tax on $88, 000 rather than $95, 000.