Treasury Regulations · 26 CFR
§ 1.723-1. Basis of property contributed to partnership.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 723
Cite as 26 CFR § 1.723-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- November 26, 1960 by T.D. 6500
- Last amended
- July 16, 2004 by T.D. 9137
- Issued under
- 26 U.S.C. § 723
- Length
- 163 words · about 1 min to read
- Cross-references
- cites 3 Code sections and 1 regulation; cited by 1
The basis to the partnership of property contributed to it by a partner is the adjusted basis of such property to the contributing partner at the time of the contribution. Since such property has the same basis in the hands of the partnership as it had in the hands of the contributing partner, the holding period of such property for the partnership includes the period during which it was held by the partner. See section 1223(2). For elective adjustments to the basis of partnership property arising from distributions or transfers of partnership interests, see sections 732(d), 734(b), and 743(b). See § 1.460-4(k)(3)(iv)(B)(2) for rules relating to adjustments to the basis of contracts accounted for using a long-term contract method of accounting that are acquired in certain contributions to which section 721(a) applies.
[T.D. 6500, 25 FR 11814, Nov. 26, 1960; 25 FR 14021, Dec. 31, 1960, as amended by T.D. 9137, 69 FR 42558, July 16, 2004]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 1223 Holding period of property
- § 732 Basis of distributed property other than money
- § 721 Nonrecognition of gain or loss on contribution
Regulations it cites
Cited by 1 other regulation
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 9137 (69 FR 42558)
- Amended (25 FR 14021)
- Issued by T.D. 6500 (25 FR 11814)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Contributions to a partnership
Nearby sections
- § 1.721(c)-6 Procedural and reporting requirements.
- § 1.721(c)-7 Examples.
- § 1.721-2 Noncompensatory options.
- § 1.722-1 Basis of contributing partner's interest.
- § 1.723-1 Basis of property contributed to partnership.