Title 26 — Internal Revenue CodeRelease 119-73
§722 Basis of contributing partner’s interest
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter K— - Partners and Partnerships › Part PART II— - CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS › Subpart Subpart A— - Contributions to a Partnership › § 722
Summary
A partner's basis equals cash contributed plus property's adjusted basis plus any gain recognized under section 721(b).
Full Legal Text
Title 26, §722
Internal Revenue Code — Source: USLM XML via OLRC
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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
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”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1984 Amendment Pub. L. 98–369, div. A, title VII, § 722(f)(2), July 18, 1984, 98 Stat. 974, 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 AmendmentFor
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.
Reference
Citations & Metadata
Citation
26 U.S.C. § 722
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73