TITLE 26.
INTERNAL REVENUE CODE
§ 732.
Basis of distributed property other than money., 26 USCS § 732
Summary
(a) Distributions other than in liquidation of a partner’s interest.
(1) General rule.The basis of property (other than money) distributed by a partnership to a partner other than in liquidation of the partner’s interest shall, except as provided in paragraph (2), be its adjusted basis to the partnership immediately before such distribution.
(2) Limitation.The basis to the distributee partner of property to which paragraph (1) is applicable shall not exceed the adjusted basis of such partner’s interest in the partnership reduced by any money distributed in the same transaction.
(b) Distributions in liquidation.The basis of property (other than money) distributed by a partnership to a partner in liquidation of the partner’s interest shall be an amount equal to the adjusted basis of such partner’s interest in the partnership reduced by any money distributed in the same transaction.
(c) Allocation of basis.
(1) In general. The basis of distributed properties to which subsection (a)(2) or (b) is ...