Title 26, Internal Revenue CodeRelease 119-102
§733 Basis of Distributee Partner’s Interest
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter K — Partners and Partnerships › PART II — CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS › Subpart B — Distributions by a Partnership › § 733
Summary
When a partnership gives a partner a distribution and the partner is not leaving the partnership, the partner’s adjusted basis in the partnership must be lowered, but not below zero. Lower it by the cash the partner receives and by the partner’s basis in any property received, as figured under section 732.
Full Legal Text
Title 26, §733
Internal Revenue Code, Source: USLM XML via OLRC
In the case of a distribution by a partnership to a partner other than in liquidation of a partner’s interest, the adjusted basis to such partner of his interest in the partnership shall be reduced (but not below zero) by—
(1)the amount of any money distributed to such partner, and
(2)the amount of the basis to such partner of distributed property other than money, as determined under section 732.
Reference
Citations & Metadata
Citation
26 U.S.C. § 733
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102