cash basis

(i)In the case of a tax shelter which is a partnership, in applyingto a deduction or loss for any taxable year attributable to an item which is deductible by reason of subparagraph (A), the term “cash basis” shall be substituted for the term “adjusted basis”. (ii)Under regulations prescribed by the Secretary, in the case of a tax shelter other than a partnership, the aggregate amount of the deductions allowable by reason of subparagraph (A) for any taxable year shall be limited in a manner similar to the limitation under clause (i). (C)For purposes of subparagraph (B), a partner’s cash basis in a partnership shall be equal to the adjusted basis of such partner’s interest in the partnership, determined without regard to— (i)any liability of the partnership, and (ii)any amount borrowed by the partner with respect to such partnership which— (I)was arranged by the partnership or by any person who participated in the organization, sale, or management of the partnership (or any person related to such person within the meaning of), or (II)was secured by any asset of the partnership.

Source

26 USC § 461(i)(2)(B)(i)


Scoping language

None: Default is title Scope
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