Public Law 119-73 (01/23/2026)

26 U.S.C. § 722

Basis of contributing partner’s interest

The basis of an interest in a partnership acquired by a contribution of property, including money, to the partnership shall be the amount of such money and the adjusted basis of such property to the contributing partner at the time of the contribution increased by the amount (if any) of gain recognized under section 721(b) to the contributing partner at such time.

Aug. 16, 1954, ch. 73668A Stat. 245Pub. L. 94–455, title XXI, § 2131(c)90 Stat. 1924Pub. L. 98–369, div. A, title VII, § 722(f)(1)98 Stat. 974(, ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 98–3691984— inserted “under section 721(b)” after “gain recognized”.

Pub. L. 94–4551976— inserted “increased by the amount (if any) of gain recognized to the contributing partner at such time” after “at the time of the contribution”.

Statutory Notes and Related Subsidiaries

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title VII, § 722(f)(2)98 Stat. 974

section 723 of this titlePub. L. 94–455“The amendments made by paragraph (1) [amending this section and ] shall take effect as if included in the amendments made by section 2131 of the Tax Reform Act of 1976 [].”
, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–455Pub. L. 94–455section 721 of this titleFor effective date of amendment made by , see section 2131(f)(3)–(5) of , set out as a note under .