Title 26, Internal Revenue CodeRelease 119-102
§754 Manner of Electing Optional Adjustment to Basis of Partnership Property
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter K — Partners and Partnerships › PART II — CONTRIBUTIONS, DISTRIBUTIONS, AND TRANSFERS › Subpart D — Provisions Common to Other Subparts › § 754
Summary
A partnership may elect, under IRS rules, to adjust the tax basis of its property for distributions and transfers; the election applies to that year and later years and can be revoked under IRS limits.
Full Legal Text
Title 26, §754
Internal Revenue Code, Source: USLM XML via OLRC
If a partnership files an election, in accordance with regulations prescribed by the Secretary, the basis of partnership property shall be adjusted, in the case of a distribution of property, in the manner provided in section 734 and, in the case of a transfer of a partnership interest, in the manner provided in section 743. Such an election shall apply with respect to all distributions of property by the partnership and to all transfers of interests in the partnership during the taxable year with respect to which such election was filed and all subsequent taxable years. Such election may be revoked by the partnership, subject to such limitations as may be provided by regulations prescribed by the Secretary.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
Reference
Citations & Metadata
Citation
26 U.S.C. § 754
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102