The adjusted basis of a partner’s interest in a partnership shall, except as provided in subsection (b), be the basis of such interest determined under section
722 (relating to contributions to a partnership) or section
742 (relating to transfers of partnership interests)—
(1)increased by the sum of his distributive share for the taxable year and prior taxable years of—
(A)taxable income of the partnership as determined under section
(B)income of the partnership exempt from tax under this title, and
(C)the excess of the deductions for depletion over the basis of the property subject to depletion;
(2)decreased (but not below zero) by distributions by the partnership as provided in section
733 and by the sum of his distributive share for the taxable year and prior taxable years of—
(A)losses of the partnership, and
(B)expenditures of the partnership not deductible in computing its taxable income and not properly chargeable to capital account; and
(3)decreased (but not below zero) by the amount of the partner’s deduction for depletion for any partnership oil and gas property to the extent such deduction does not exceed the proportionate share of the adjusted basis of such property allocated to such partner under section
(b) Alternative rule
The Secretary shall prescribe by regulations the circumstances under which the adjusted basis of a partner’s interest in a partnership may be determined by reference to his proportionate share of the adjusted basis of partnership property upon a termination of the partnership.
1984—Subsec. (a)(3). Pub. L. 98–369substituted “for any partnership oil and gas property to the extent such deduction does not exceed the proportionate share of the adjusted basis of such property allocated to such partner under section
613A(c)(7)(D)” for “under section
611 with respect to oil and gas wells”.
Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Effective Date of 1984 Amendment
Section 722(e)(3)(A) ofPub. L. 98–369provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on January 1, 1975.”
Effective Date of 1976 Amendment
Amendment by section 2115(c)(3) ofPub. L. 94–455effective on Jan. 1, 1975, and applicable to taxable years ending after Dec. 31, 1974, see section 2115(f) ofPub. L. 94–455, set out as a note under section
613A of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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