Title 26, Internal Revenue CodeRelease 119-102
§723 Basis of Property Contributed to Partnership
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter K — Partners and Partnerships › PART II — CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS › Subpart A — Contributions to a Partnership › § 723
Summary
If a partner contributes property, the partnership's basis equals the partner's adjusted basis plus any gain under section 721(b).
Full Legal Text
Title 26, §723
Internal Revenue Code, Source: USLM XML via OLRC
The basis of property contributed to a partnership by a partner shall be 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 AmendmentAmendment by Pub. L. 98–369 effective as if included in
Amendments
made by section 2131 of the Tax Reform Act of 1976, Pub. L. 94–455, see section 722(f)(2) of Pub. L. 98–369, set out as a note under section 722 of this title.
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. § 723
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102