basis of such interest. (g) Dispositions between related persons (1) In general This section shall not apply to any sale or other disposition of property between related persons except to the extent that the basis of such property in the hands of the transferee is a substituted basis. (2) Related persons defined For purposes of this section, the term related persons means— (A) persons bearing a relationship set forth in section 267(b), and (B) persons treated as single employer under subsection (b) or (c) of section 414. (h) Transfers To increase indexing adjustment If any person transfers cash, debt, or any other property to another person and the principal purpose of such transfer is to secure or increase an adjustment under subsection (a), the Secretary may disallow part or all of such adjustment or increase. (i) Special rules For purposes of this section— (1) Treatment of improvements, etc If there is an addition to the adjusted basis of any tangible property or of any stock in a corporation during the taxable year by reason of an improvement to such property or a contribution to capital of such corporation— (A) such addition shall never be taken into account under subsection (c)(1)(A) if the aggregate amount thereof during the taxable year with respect to such property or stock is less than $1,000, and (B) such addition shall be treated as a separate asset acquired at the close of such taxable year if the aggregate amount thereof during the taxable year with respect to such property or stock is $1,000 or more. A rule similar to the rule of the preceding sentence shall apply to any other portion of an asset to the extent that separate treatment of such portion is appropriate to carry out the purposes of this section. (2) Assets which are not indexed assets throughout holding period The applicable inflation adjustment shall be appropriately reduced for periods during which the asset was not an indexed asset. (3) Treatment of certain distributions A distribution with respect to stock in a corporation which is