§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. 736, 68A Stat. 245 ; Oct. 4, 1976, Pub. L. 94–455, title XXI, §2131(c), 90 Stat. 1924 ; July 18, 1984, Pub. L. 98–369, div. A, title VII, §722(f)(1), 98 Stat. 974 .)

Amendments

1984-Pub. L. 98–369 inserted "under section 721(b)" after "gain recognized".

1976-Pub. L. 94–455 inserted "increased by the amount (if any) of gain recognized to the contributing partner at such time" after "at the time of the contribution".

Effective Date of 1984 Amendment

Section 722(f)(2) of Pub. L. 98–369 provided that: "The amendments made by paragraph (1) [amending this section and section 723 of this title] shall take effect as if included in the amendments made by section 2131 of the Tax Reform Act of 1976 [Pub. L. 94–455]."

Effective Date of 1976 Amendment

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

Cross References

Determination of basis of partner's interest, see section 705 of this title.

Section Referred to in Other Sections

This section is referred to in section 705 of this title.